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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 Speaker 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 NAYS--None 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
|||| 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 2 RELATING TO THE INCOME TAX CREDIT FOR CAPITAL INVESTMENT; AMENDING SECTION 3 63-3029B, IDAHO CODE, TO INCREASE THE INVESTMENT CREDIT CARRYOVER FROM THE 4 SEVEN TO THE FOURTEEN SUCCEEDING TAXABLE YEARS AND TO MAKE TECHNICAL 5 CORRECTIONS; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION. 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-overscarryovers; 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-overscarryovers 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-overcarryover 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- 2 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-overcarryover of credit is permitted 20 under this section if the credit or carry-overcarryover relates to property 21 that does not have a situs in Idaho during the taxable year for which the 22 credit or carry-overcarryover 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 RS10210 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