2000 Legislation
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HOUSE BILL NO. 800 – Income tax, investment credit


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Daily Data Tracking History

H0800...............................................by REVENUE AND TAXATION
INCOME TAX - Amends existing law to increase the investment credit
carryover from seven to fourteen taxable years for purposes of the state
investment tax credit.
03/30    House intro - 1st rdg - to printing
    Rpt prt - 2nd rdg - to 3rd rdg
    Rls susp - PASSED - 54-10-6
      AYES -- Alltus, Barraclough, Barrett, Black, Boe, Bruneel, Callister,
      Campbell, Chase, Cheirrett, Crow, Cuddy, Deal, Denney, Ellsworth,
      Field(13), Field(20), Gagner, Geddes, Gould, Hadley, Hammond,
      Hansen(23), Hansen(29), Henbest, Hornbeck, Jones(Jones), Judd,
      Kellogg, Kempton, Kendell, Kunz, Loertscher, Mader, Marley, McKague,
      Meyer, Mortensen, Moss, Moyle, Pearce, Pischner, Pomeroy, Ridinger,
      Sali, Schaefer, Sellman, Shepherd, Smylie, Stoicheff, Stone, Tilman,
      Wheeler, Zimmermann
      NAYS -- Bieter, Clark, Jaquet, Lake, Montgomery, Ringo, Robison,
      Smith, Trail, Wood
      Absent and excused -- Bell, Linford, Reynolds, Stevenson, Taylor, Mr
    Floor Sponsor - Crow
    Title apvd - to Senate
04/03    Senate intro - 1st rdg - to Loc Gov
    Rpt out - to 2nd rdg
04/04    2nd rdg - to 3rd rdg
04/05    3rd rdg - PASSED - 35-0-0
      AYES--Andreason, Boatright, Bunderson, Burtenshaw, Cameron, Crow,
      Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
      Hawkins, Ingram, Ipsen, Keough, King-Barrutia, Lee, McLaughlin, Noh,
      Parry, Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner,
      Stennett, Thorne, Walton, Wheeler, Whitworth, Williams
      Absent and excused--None
    Floor Sponsors - Thorne, Hawkins, Frasure
    Title apvd - to House
    To enrol - rpt enrol - Sp signed - Pres signed
04/06    To Governor
04/17    Governor signed
         Session Law Chapter 457
         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. 800
                             BY REVENUE AND TAXATION COMMITTEE
  1                                        AN ACT
  6    Be It Enacted by the Legislature of the State of Idaho:
  7        SECTION 1.  That Section 63-3029B, Idaho Code, be, and the same is  hereby
  8    amended to read as follows:
  9        63-3029B.  INCOME  TAX  CREDIT FOR CAPITAL INVESTMENT. (1) At the election
 10    of the taxpayer there shall be allowed, subject to the applicable  limitations
 11    provided  herein  as  a  credit  against the income tax imposed by chapter 30,
 12    title 63, Idaho Code, an amount equal to the sum of:
 13        (a)  tThe tax credit carry-overs carryovers; and
 14        (b)  tThe tax credit for the taxable year.
 15        (2)  The maximum allowable amount of the credit for  the  current  taxable
 16    year  shall  be three percent (3%) of the amount of qualified investments made
 17    during the taxable year.
 18        (3)  As used in this section "qualified investment" means  certain  depre-
 19    ciable property which:
 20        (a)  iIs  eligible  for  the  federal investment tax credit, as defined in
 21        sections 46(c) and 48 of the iInternal rRevenue cCode subject to the limi-
 22        tations provided for certain regulated companies in section 46(f)  of  the
 23        iInternal  rRevenue  cCode and is not a motor vehicle under eight thousand
 24        (8,000) pounds gross weight;
 25        (b)  iIs acquired, constructed, reconstructed, erected or placed into ser-
 26        vice after December 31, 1981; and
 27        (c)  hHas a situs in Idaho.
 28        (4)  Notwithstanding the provisions of subsections (1) and (2), the amount
 29    of the credit allowed shall not exceed forty-five percent  (45%)  of  the  tax
 30    liability of the taxpayer.
 31        (5)  If  the  sum of credit carry-overs carryovers from the credit allowed
 32    by subsection (2) and the amount of credit  for  the  taxable  year  from  the
 33    credit  allowed  by subsection (2) exceed the limitation imposed by subsection
 34    (4) for the current taxable year, the excess attributable to the current  tax-
 35    able  year's  credit shall be an investment credit carry-over carryover to the
 36    seven (7) fourteen (14) succeeding taxable years. In the case of  a  group  of
 37    corporations  filing  a  combined report under section 63-3027, Idaho Code, or
 38    sections 63-3027B through 63-3027E, Idaho Code, credit earned by one (1)  mem-
 39    ber  of the group but not used by that member may be used by another member of
 40    the group, subject to the  provisions  of  subsection  (4)  of  this  section,
 41    instead  of  carried over. The entire amount of unused credit shall be carried
 42    forward to the earliest of the succeeding years, wherein the oldest  available
 43    unused  credit  shall be used first, so long as the qualified investment prop-
  1    erty for which the unused credit was granted still maintains Idaho situs.  For
  2    a combined group of corporations, credit carried forward may be claimed by any
  3    member  of  the  group  unless  the  member who earned the credit is no longer
  4    included in the combined group.
  5        (6)  Any recapture of the credit allowed by subsection (2) of this section
  6    on property disposed of or ceasing to qualify, prior to the close of its  use-
  7    ful life, shall be determined according to the applicable recapture provisions
  8    of  the  iInternal  rRevenue cCode. In the case of a unitary group of corpora-
  9    tions, the increase in tax due to the recapture of  investment tax credit must
 10    be reported by the member of the group who earned  the  credit  regardless  of
 11    which member claimed the credit against tax.
 12        (7)  For  the purpose of determining whether property placed in service is
 13    a "qualified investment" as defined in subsection (3)  of  this  section,  the
 14    provisions of section 49 of the iInternal rRevenue cCode shall be disregarded.
 15        (8)  For  purposes of this section, property has a situs in Idaho during a
 16    taxable year if it is used in Idaho at any time during the taxable year. Prop-
 17    erty not used in Idaho during a taxable year does not have a situs in Idaho in
 18    the taxable year during which the property is not used in Idaho or in any sub-
 19    sequent taxable year. No credit or carry-over carryover of credit is permitted
 20    under this section if the credit or carry-over carryover relates  to  property
 21    that  does  not  have  a  situs in Idaho during the taxable year for which the
 22    credit or carry-over carryover is claimed. The Idaho situs of property must be
 23    established by records maintained by the taxpayer which are created reasonably
 24    contemporaneously with the use of the property.
 25        (9)  In the case of property used both in and outside Idaho, the taxpayer,
 26    electing to claim the credit provided in this section, must elect  to  compute
 27    the  qualified  investment  in  property  with  a  situs in Idaho for all such
 28    investments first qualifying during that year in one (1), but only one (1), of
 29    the following ways:
 30        (a)  tThe amount of each qualified investment in a specific asset shall be
 31        separately computed based on the percentage of the actual use of the prop-
 32        erty in Idaho by using a measure of the use, such as total miles or  total
 33        machine hours, that most accurately reflects the beneficial use during the
 34        taxable  year  in  which it is first acquired, constructed, reconstructed,
 35        erected or placed into service; provided, that the asset is placed in ser-
 36        vice more than ninety (90) days before the end of the taxable year. In the
 37        case of assets acquired, constructed,  reconstructed,  erected  or  placed
 38        into  service within ninety (90) days prior to the end of the taxable year
 39        in which the investment first qualifies, the measure of the  use  of  that
 40        asset within Idaho for that year shall be based upon the percentage of use
 41        in Idaho during the first ninety (90) days of use of the asset;
 42        (b)  tThe  investment  in  qualified property used both inside and outside
 43        Idaho during the taxable year in which it is first acquired,  constructed,
 44        reconstructed,  erected  or placed into service shall be multiplied by the
 45        percent of the investment that would be included in the numerator  of  the
 46        Idaho  property factor determined pursuant to section 63-3027, Idaho Code,
 47        for the same year.
 48        (10) Only for the purposes of subsections (3)(a) and (7) of this  section,
 49    references  to  sections  of  the "iInternal rRevenue cCode" mean the sections
 50    referred to as they existed in the iInternal rRevenue cCode of 1986  prior  to
 51    November 5, 1990.
 52        SECTION  2.  An  emergency  existing  therefor,  which emergency is hereby
 53    declared to exist, this act shall be in full force and effect on and after its
 54    passage and approval, and retroactively to January 1, 2000.

Statement of Purpose / Fiscal Impact

                STATEMENT OF PURPOSE 
     The purpose of this legislation is to increase the investment credit carryover from
     seven (7) to the fourteen (14) succeeding taxable years. This legislation shall be
     retroactive to January 1, 2000. 
                    FISCAL IMPACT 
     There will be an impact of $135,000 to the General Fund. 
     CONTACT: Representative Dolores Crow
     Phone:         (208) 332-1000 
                                                  STATEMENT OF PURPOSE/ FISCAL IMPACT                       H 800