2000 Legislation
Print Friendly

HOUSE BILL NO. 608, As Amended in the Senate – Income tax credit, new employees

HOUSE BILL NO. 608, As Amended in the Senate

View Daily Data Tracking History

View Bill Text

View Amendment

View Statement of Purpose / Fiscal Impact

Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Daily Data Tracking History

H0608aaS............................................by REVENUE AND TAXATION
INCOME TAX CREDIT - Adds to existing law to provide special credits to the
income tax to employers of new employees in an enterprise that produces,
assembles, fabricates or processes natural resource products.
02/18    House intro - 1st rdg - to printing
02/21    Rpt prt - to Rev/Tax
02/29    Rpt out - rec d/p - to 2nd rdg
03/01    2nd rdg - to 3rd rdg
03/06    3rd rdg - PASSED - 43-22-5
      AYES -- Alltus, Barraclough, Barrett, Black, Bruneel, Campbell,
      Chase, Clark, Crow, Cuddy, Ellsworth, Field(13), Field(20), Gagner,
      Gould, Hansen(29), Henbest, Hornbeck, Jaquet, Jones, Judd, Kellogg,
      Kempton, Linford, Loertscher, Mader, McKague, Meyer, Moss, Pischner,
      Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali, Sellman, Shepherd,
      Stoicheff, Taylor, Tilman, Trail, Zimmermann
      NAYS -- Bell, Bieter, Callister, Cheirrett, Deal, Denney, Geddes,
      Hammond, Hansen(23), Kendell, Lake, Montgomery, Mortensen, Moyle,
      Pearce, Schaefer(Tiegs), Smith, Smylie, Stevenson, Stone, Wood, Mr
      Absent and excused -- Boe, Hadley, Kunz, Marley, Wheeler
    Floor Sponsor - Cuddy
    Title apvd - to Senate
03/07    Senate intro - 1st rdg - to Loc Gov
03/16    Rpt out - to 14th Ord
03/21    Rpt out amen - to 1st rdg as amen
03/23    2nd rdg - to 3rd rdg as amen
03/27    3rd rdg as amen - PASSED - 30-0-5
      AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
      Darrington, Davis, Deide, Dunklin, Frasure, Geddes, Hawkins, Ipsen,
      Keough, King-Barrutia, Lee, McLaughlin, Noh, Richardson, Riggs,
      Risch, Sandy, Schroeder, Sorensen, Stegner, Stennett, Thorne,
      Whitworth, Williams
      Absent and excused--Crow, Danielson, Ingram, Parry, Wheeler
    Floor Sponsor - McLaughlin
    Title apvd - to House
03/28    House concurred in Senate amens - to engros
03/29    Rpt engros - 1st rdg - to 2nd rdg as amen
    2nd rdg - to 3rd rdg as amen
    Rules susp - PASSED - 38-30-2
      AYES -- Alltus, Barrett, Black, Boe, Bruneel, Callister, Campbell,
      Chase, Crow, Cuddy, Deal, Field(13), Field(20), Gould, Hadley,
      Hammond, Hansen(29), Henbest, Hornbeck, Jaquet, Jones, Judd, Kellogg,
      Mader, Marley, McKague, Meyer, Pischner, Ridinger, Ringo, Sali,
      Schaefer, Shepherd, Stoicheff, Stone, Trail, Wood, Zimmermann
      NAYS -- Barraclough, Bell, Bieter, Cheirrett, Clark, Denney,
      Ellsworth, Gagner, Geddes, Hansen(23), Kempton, Kendell, Lake,
      Linford, Loertscher, Montgomery, Mortensen, Moss, Moyle, Pearce,
      Pomeroy, Reynolds, Robison, Sellman, Smith, Smylie, Stevenson,
      Taylor, Wheeler, Mr Speaker
      Absent and excused -- Kunz, Tilman
    Floor Sponsor - Cuddy
    Title apvd - to enrol
03/30    Rpt enrol - Sp signed - Pres signed
03/31    To Governor
04/17    Governor signed
         Session Law Chapter 427
         Effective: 01/01/00

Bill Text

  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-fifth Legislature                  Second Regular Session - 2000
                              IN THE HOUSE OF REPRESENTATIVES
                        HOUSE BILL NO. 608, As Amended in the Senate
                             BY REVENUE AND TAXATION COMMITTEE
  1                                        AN ACT
  8    Be It Enacted by the Legislature of the State of Idaho:
  9        SECTION  1.  That  Chapter  30,  Title 63, Idaho Code, be, and the same is
 10    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 11    ignated as Section 63-3029E, Idaho Code, and to read as follows:
 12        63-3029E.  DEFINITIONS  --  CONSTRUCTION OF TERMS. As used in this section
 13    and in section 63-3029F, Idaho Code:
 14        (1)  (a) "New employee" means a person from whom Idaho income tax has been
 15        withheld, employed by the taxpayer in a revenue-producing enterprise  cre-
 16        ating  value-added natural resource products, and covered for unemployment
 17        insurance purposes under chapter 13, title 72, Idaho Code, during the tax-
 18        able year for which the credit allowed by section 63-3029F, Idaho Code, is
 19        claimed. A person shall be deemed to be so engaged if such person performs
 20        duties on:
 21             (i)   A regular full-time basis; or
 22             (ii)  A part-time basis if such person is customarily performing such
 23             duties at least twenty (20) hours per week.
 24        No credit shall be earned unless the new  employee  shall  have  performed
 25        such  duties  for the taxpayer for a minimum of nine (9) months during the
 26        taxable year for which the credit is claimed.
 27        (b)  The provisions of paragraph (a) of this  subsection  notwithstanding,
 28        no  credit  shall  be  allowed for employment of persons by a taxpayer who
 29        acquires a revenue-producing enterprise from another taxpayer or who oper-
 30        ates in a place of business the same or a substantially identical revenue-
 31        producing value-added natural resource products enterprise as operated  by
 32        another  taxpayer within the prior twelve (12) months, except as the prior
 33        taxpayer would have qualified under the provisions  of  paragraph  (c)  of
 34        this  subsection.  Employees transferred from a related taxpayer shall not
 35        be included in the computation of the credit.
 36        (c)  The number of employees during any  taxable  year  for  any  taxpayer
 37        shall  be  the mathematical average of the number of employees reported to
 38        the Idaho department of labor for employment security purposes during  the
 39        twelve (12) months of the taxable year which qualified under paragraph (a)
 40        of  this  subsection.  In  the event the business is in operation for less
 41        than the entire taxable year, the number of employees of the business  for
 42        the  year  shall be the average number actually employed during the months
 43        of operation, providing that the qualifications of paragraph (a)  of  this
  1        subsection are met.
  2        (2)  "Revenue-producing enterprise" means the production, assembly, fabri-
  3    cation, manufacture or processing of any natural resource product.
  4        (3)  "Same  or  a  substantially  identical  revenue-producing enterprise"
  5    means a revenue-producing enterprise in which the products produced  or  sold,
  6    or  the  activities  conducted  are the same in character and use and are pro-
  7    duced, sold or conducted in the same manner as, or for the same types of  cus-
  8    tomers  as,  the products or activities produced, sold or conducted in another
  9    revenue-producing enterprise.
 10        SECTION 2.  That Chapter 30, Title 63, Idaho Code, be,  and  the  same  is
 11    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 12    ignated as Section 63-3029F, Idaho Code, and to read as follows:
 13        63-3029F.  SPECIAL CREDIT AVAILABLE -- NEW  EMPLOYEES.  (1)  Any  taxpayer
 14    shall  be  allowed  a  credit, in an amount determined under subsection (2) of
 15    this section, against the tax imposed by this  chapter,  other  than  the  tax
 16    imposed  by section 63-3082, Idaho Code, for any taxable year during which the
 17    taxpayer's employment of new employees, as defined under section  63-3029E(1),
 18    Idaho  Code, increases above the taxpayer's average employment for either: (a)
 19    the prior taxable year, or (b) the average of three (3) prior  taxable  years,
 20    whichever is higher.  No credit shall be allowed under this section unless the
 21    number of new employees equals or exceeds one (1) person.
 22        (2)  The credit authorized in subsection (1) of this section shall be five
 23    hundred  dollars  ($500)  per new employee, but the total credit allowed shall
 24    not exceed three and one-quarter  percent  (3.25%)  of  net  income  from  the
 25    taxpayer's  corporate, proprietorship, partnership, small business corporation
 26    or limited liability company revenue-producing enterprise in which the employ-
 27    ment occurred. Additionally, the total of this and all other  credits  allowed
 28    under  this  chapter  except  for the credits allowed under sections 63-3024A,
 29    63-3025D and 63-3029, Idaho Code, taken during  any  taxable  year  shall  not
 30    exceed  forty-five  percent (45%) of the tax otherwise imposed on the taxpayer
 31    for the taxable year for which such credit is allowed.
 32        (3)  If the sum of the credit carryovers from the credit allowed  by  sub-
 33    section (2) of this section and the amount of credit for the taxable year from
 34    the  credit  allowed  by  subsection (2) of this section exceed the limitation
 35    imposed by subsection (2) of this section for the current  taxable  year,  the
 36    excess  attributable  to  the  current taxable year's credit shall be a credit
 37    carryover to the three (3) succeeding taxable  years.  The  entire  amount  of
 38    unused  credit  shall  be  carried  forward  to the earliest of the succeeding
 39    years, wherein the oldest available unused credit shall be used first, so long
 40    as the employment level for which the credit was granted is still maintained.
 41        SECTION 3.  An emergency existing  therefor,  which  emergency  is  hereby
 42    declared to exist, this act shall be in full force and effect on and after its
 43    passage and approval, and retroactively to January 1, 2000.


  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-fifth Legislature                  Second Regular Session - 2000
                                                     Moved by    Danielson           
                                                     Seconded by McLaughlin          
                                       IN THE SENATE
                              SENATE AMENDMENT TO H.B. NO. 608
  1                                AMENDMENT TO SECTION 1
  2        On page 1 of the printed bill, in  line  16,  delete  "wood"  and  insert:
  3    "natural  resource";  and  in  line  31,  delete  "wood"  and insert: "natural
  4    resource".
  5        On page 2, in line 3, delete "wood" and insert "natural resource".
  6                                 CORRECTION TO TITLE
  7        On page 1, in line 6, delete "WOOD" and insert: "NATURAL RESOURCE".

Statement of Purpose / Fiscal Impact

                 STATEMENT OF PURPOSE
                       RS 09999 
     The purpose of this legislation is to try and generate jobs in timber dependent
     communities that have been enduring job loss for the past several years.
                    FISCAL IMPACT 
     No accurate numbers are ascertainable but the fiscal impact is estimated to not
     exceed $175,000 from the General Fund. 
     Name: Rep. Charles Cuddy
     Phone: 332-1000 
                                                  STATEMENT OF PURPOSE/FISCAL NOTE                                   H 608