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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
Speaker
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
NAYS--None
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
H0608
|||| 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
2 RELATING TO THE STATE INCOME TAX; AMENDING CHAPTER 30, TITLE 63, IDAHO CODE,
3 BY THE ADDITION OF NEW SECTIONS 63-3029E AND 63-3029F, IDAHO CODE, TO PRO-
4 VIDE DEFINITIONS AND CONSTRUCTION OF TERMS AND TO PROVIDE SPECIAL CREDITS
5 TO THE INCOME TAX FOR NEW EMPLOYEES FOR AN ENTERPRISE THAT PRODUCES,
6 ASSEMBLES, FABRICATES OR PROCESSES NATURAL RESOURCE PRODUCTS; DECLARING AN
7 EMERGENCY AND PROVIDING RETROACTIVE APPLICATION.
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
2
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.
AH0608
|||| 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
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.
Contact
Name: Rep. Charles Cuddy
Phone: 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 608