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H0121aaS............................................by REVENUE AND TAXATION
INCOME TAX - Amends existing law relating to the administration of the
Idaho Income Tax Act to make technical corrections for internal
consistency, correct cross references and citations, and coordinate credits
within the Income Tax Act.
01/30 House intro - 1st rdg - to printing
01/31 Rpt prt - to Rev/Tax
02/06 Rpt out - rec d/p - to 2nd rdg
02/07 2nd rdg - to 3rd rdg
02/13 3rd rdg - PASSED - 65-0-5
AYES -- Barraclough, Barrett, Bedke, Bell, Bieter, Black, Boe, Bolz,
Bradford, Campbell, Chase, Clark, Collins, Crow, Deal, Denney, Ellis,
Ellsworth, Eskridge, Field(13), Field(20), Gagner, Gould, Hadley,
Hammond, Harwood, Henbest, Higgins, Hornbeck, Jaquet, Jones, Kellogg,
Kendell, Kunz, Lake, Langford, Loertscher, Mader, Marley, McKague,
Meyer, Montgomery, Mortensen, Moyle, Pearce, Pischner, Pomeroy,
Raybould, Ridinger, Roberts, Robison, Sali, Schaefer, Sellman,
Shepherd, Smith, Smylie, Stevenson, Stone, Swan, Tilman, Trail,
Wheeler, Wood, Young
NAYS -- None
Absent and excused -- Bruneel, Callister, Cuddy, Moss, Mr. Speaker
Floor Sponsor -- Smith
Title apvd - to Senate
02/14 Senate intro - 1st rdg - to Loc Gov
03/22 Rpt out - to 14th Ord
Rpt out amen - to 1st rdg as amen
1st rdg - to 2nd rdg as amen
03/23 2nd rdg - to 3rd rdg as amen
03/26 3rd rdg as amen - PASSED - 35-0-0
AYES -- Andreason, Boatright, Branch, Brandt, Bunderson, Burtenshaw,
Cameron, Danielson, Darrington, Davis, Deide, Dunklin, Frasure,
Geddes, Goedde, Hawkins, Ingram, Ipsen, Keough, King-Barrutia, Lee,
Lodge, Noh, Richardson, Risch, Sandy, Schroeder, Sims, Sorensen,
Stegner, Stennett, Thorne, Wheeler, Whitworth, Williams,
NAYS -- None
Absent and excused -- None
Floor Sponsor -- Thorne
Title apvd - to House
03/26 House concurred in Senate amens - to engros
03/28 Rpt engros - 1st rdg - to 2nd rdg as amen
03/29 2nd rdg - to 3rd rdg as amen
03/30 3rd rdg as amen - PASSED - 58-0-12
AYES -- Barraclough, Barrett, Bedke, Bell, Bieter, Black, Bolz,
Bruneel, Clark, Collins, Cuddy, Deal, Denney, Eskridge, Field(13),
Field(20), Gagner, Gould, Hadley, Hammond, Hansen, Harwood,
Henbest(Farley), Higgins, Hornbeck, Jaquet, Jones, Kellogg, Kendell,
Kunz, Lake, Langford, Loertscher, Marley, McKague, Meyer, Montgomery,
Mortensen, Moss, Moyle, Pomeroy, Raybould, Ridinger, Roberts,
Robison, Sali, Schaefer, Sellman, Shepherd, Smylie, Stevenson, Stone,
Tilman, Trail, Wheeler, Wood, Young(Young), Mr. Speaker
NAYS -- None
Absent and excused -- Boe, Bradford, Callister, Campbell, Chase,
Crow, Ellis, Ellsworth, Mader, Pearce, Pischner, Smith
Floor Sponsor -- Smith
Title apvd - to enrol
03/30 Rpt enrol - Sp signed - Pres signed - to Governor
03/31 Governor signed
Session Law Chapter 270
Effective: 01/01/01, Secs 1 thru 7
03/31/01, Section 8
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 121
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO THE IDAHO INCOME TAX ACT; AMENDING SECTION 63-3022, IDAHO CODE, TO
3 CLARIFY THE ADJUSTMENT TO TAXABLE INCOME INCLUDING ADJUSTMENTS FOR TAXES
4 PAID OTHER STATES, FOR NET OPERATING LOSSES OF TRUSTS AND ESTATES AND FOR
5 CERTAIN LUMP SUM DISTRIBUTIONS AND TO MAKE A TECHNICAL CORRECTION; AMEND-
6 ING SECTION 63-3022C, IDAHO CODE, TO CORRECT A REFERENCE TO THE DIVISION
7 OF ENVIRONMENTAL QUALITY; AMENDING SECTION 63-3022K, IDAHO CODE, TO STRIKE
8 REDUNDANT LANGUAGE AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION
9 63-3022L, IDAHO CODE, TO CLARIFY THE ELECTION TO PAY TAX OF CERTAIN PART-
10 NERS, SHAREHOLDERS OR MEMBERS OF A CORPORATION, PARTNERSHIP OR TRUST;
11 AMENDING SECTION 63-3022O, IDAHO CODE, TO CORRECT A CROSS REFERENCE;
12 AMENDING SECTION 63-3029B, IDAHO CODE, TO COORDINATE THE INVESTMENT TAX
13 CREDIT WITH OTHER CREDITS; AMENDING SECTION 63-3029F, IDAHO CODE, TO
14 INCREASE THE LIMITATION ON THE NEW JOBS CREDIT AND TO COORDINATE THE
15 CREDIT WITH OTHER CREDITS; AMENDING SECTION 63-3046, IDAHO CODE, TO REMOVE
16 INCONSISTENCIES BETWEEN PROVISIONS RELATING TO PENALTIES; DECLARING AN
17 EMERGENCY AND PROVIDING A RETROACTIVE EFFECTIVE DATE FOR SECTIONS 1
18 THROUGH 7, AND DECLARING AN EMERGENCY FOR SECTION 8 OF THIS ACT.
19 Be It Enacted by the Legislature of the State of Idaho:
20 SECTION 1. That Section 63-3022, Idaho Code, be, and the same is hereby
21 amended to read as follows:
22 63-3022. ADJUSTMENTS TO TAXABLE INCOME. The additions and subtractions
23 set forth in this section, and in sections 63-3022A through 63-3022M, Idaho
24 Code, are to be applied to the extent allowed in computing Idaho taxable
25 income:
26 (a) Add any state and local taxes, as defined in section 164 of the
27 Internal Revenue Code and, measured by net income, paid or accrued during the
28 taxable year adjusted for state or local tax refunds used in arriving at tax-
29 able income.
30 (b) Add the net operating loss deduction used in arriving at taxable
31 income.
32 (c) (1) A net operating loss for any taxable year commencing on and after
33 January 1, 2000, shall be a net operating loss carryback not to exceed a
34 total of one hundred thousand dollars ($100,000) to the two (2) immedi-
35 ately preceding taxable years. Any portion of the net operating loss not
36 subtracted in the two (2) preceding years may be subtracted in the next
37 twenty (20) years succeeding the taxable year in which the loss arises in
38 order until exhausted. The sum of the deductions may not exceed the amount
39 of the net operating loss deduction incurred. At the election of the tax-
40 payer, the two (2) year carryback may be foregone and the loss subtracted
41 from income received in taxable years arising in the next twenty (20)
42 years succeeding the taxable year in which the loss arises in order until
43 exhausted. The election shall be made as under section 172(b)(3) of the
2
1 Internal Revenue Code. An election under this subsection must be in the
2 manner prescribed in the rules of the state tax commission and once made
3 is irrevocable for the year in which it is made. The term "income" as used
4 in this subsection (c) means Idaho taxable income as defined in this chap-
5 ter as modified by section 63-3021(b)(2), (3) and (4), Idaho Code.
6 (2) Net operating losses incurred by a corporation during a year in which
7 such corporation did not transact business in Idaho or was not included in
8 a group of corporations combined under subsection (t) of section 63-3027,
9 Idaho Code, may not be subtracted. However, if at least one (1) corpora-
10 tion within a group of corporations combined under subsection (t) of sec-
11 tion 63-3027, Idaho Code, was transacting business in Idaho during the
12 taxable year in which the loss was incurred, then the net operating loss
13 may be subtracted. Net operating losses incurred by a person, other than a
14 corporation, in business activities not taxable by Idaho may not be sub-
15 tracted.
16 (d) In the case of a corporation, add the amount deducted under the pro-
17 visions of sections 243(a) and (c), 244, 245 and 246A of the Internal Revenue
18 Code (relating to dividends received by corporations) as limited by section
19 246(b)(1) of said code.
20 (e) In the case of a corporation, subtract an amount determined under
21 section 78 of the Internal Revenue Code to be taxable as dividends.
22 (f) Subtract the amount of any income received or accrued during the tax-
23 able year which is exempt from taxation by this state, under the provisions of
24 any other law of this state or a law of the United States, if not previously
25 subtracted in arriving at taxable income.
26 (g) For the purpose of determining the Idaho taxable income of the bene-
27 ficiary of a trust or of an estate,:
28 (1) Ddistributable net income as defined for federal tax purposes shall
29 be corrected for the other adjustments required by this section. In the
30 event that a nonresident beneficiary of a trust or estate fails to file an
31 Idaho income tax return reporting all or any part of distributable net
32 income taxable in Idaho or fails to pay any tax due thereon, the trust or
33 estate making the payment or distribution shall be taxable upon the amount
34 of such distribution or payment at the rates established by section
35 63-3024, Idaho Code
36 (2) Net operating losses attributable to a beneficiary of a trust or
37 estate under section 642 of the Internal Revenue Code shall be a deduction
38 for the beneficiary to the extent that income from the trust or estate
39 would be attributable to this state under the provisions of this chapter.
40 (h) In the case of an individual who is on active duty as a full-time
41 officer, enlistee or draftee, with the armed forces of the United States,
42 which full-time duty is or will be continuous and uninterrupted for one hun-
43 dred twenty (120) consecutive days or more, deduct compensation paid by the
44 armed forces of the United States for services performed outside this state.
45 The deduction is allowed only to the extent such income is included in taxable
46 income, and provided that appropriate adjustments shall be made in determining
47 the deductions and exemptions allowed pursuant to section 63-3026A(4), Idaho
48 Code.
49 (i) In the case of a corporation, including any corporation included in a
50 group of corporations combined under subsection (t) of section 63-3027, Idaho
51 Code, add any capital loss deducted which loss was incurred during any year in
52 which such corporation did not transact business in Idaho. However, do not add
53 any capital loss deducted if a corporation, including any corporation in a
54 group of corporations combined under subsection (t) of section 63-3027, Idaho
55 Code, was transacting business in Idaho during the taxable year in which the
3
1 loss was incurred. In the case of persons, other than corporations, add any
2 capital loss deducted which was incurred in business activities not taxable by
3 Idaho at the time such loss was incurred. In computing the income taxable to
4 an S corporation or partnership under this section, deduction shall not be
5 allowed for a carryover or carryback of a net operating loss provided for in
6 subsection (c) of this section or a capital loss provided for in section 1212
7 of the Internal Revenue Code.
8 (j) In the case of an individual, there shall be allowed as a deduction
9 from gross income either (1) or (2) at the option of the taxpayer:
10 (1) The standard deduction as defined in section 63, Internal Revenue
11 Code.
12 (2) Itemized deductions as defined in section 63 of the Internal Revenue
13 Code except state income or local taxes measured by net income and as
14 specified defined in section 164 of the Internal Revenue Code.
15 (k) Add the taxable amount of any lump sum distribution deducted from
16 gross income pursuant to section 402(d)(3) of the Internal Revenue Code
17 excluded from gross income for federal income tax purposes under the ten (10)
18 year averaging method. The taxable amount will include the ordinary income
19 portion and the amount eligible for the capital gain election.
20 (l) Deduct any amounts included in gross income under the provisions of
21 section 86 of the Internal Revenue Code relating to certain social security
22 and railroad benefits.
23 (m) In the case of a self-employed individual, deduct the actual cost of
24 premiums paid to secure worker's compensation insurance for coverage in Idaho,
25 if such cost has not been deducted in arriving at taxable income.
26 (on) In the case of an individual, deduct the amount contributed to a
27 college savings program pursuant to chapter 54, title 33, Idaho Code, but not
28 more than four thousand dollars ($4,000) per tax year.
29 SECTION 2. That Section 63-3022C, Idaho Code, be, and the same is hereby
30 amended to read as follows:
31 63-3022C. DEDUCTION FOR ALTERNATIVE ENERGY DEVICE AT RESIDENCE. (1) An
32 individual taxpayer who installs an alternative energy device to serve a place
33 of residence of the individual taxpayer in the state of Idaho may deduct from
34 taxable income the following amounts actually paid or accrued by the individ-
35 ual taxpayer: forty percent (40%) of the amount that is properly attributable
36 to the construction, reconstruction, remodeling, installation or acquisition
37 of the alternative energy device in the year when such device is completed or
38 acquired and is placed in service by the taxpayer; and twenty percent (20%)
39 per year thereafter for a period of three (3) succeeding years; provided, how-
40 ever, that said deduction shall not exceed five thousand dollars ($5,000) in
41 any one (1) taxable year.
42 (2) An individual taxpayer who purchases a residence in the state of
43 Idaho served by an alternative energy device for which none or less than all
44 of the total deduction allowable under this section has been taken, may take
45 the deduction specified in this section, or the unused balance of the deduc-
46 tion.
47 (3) As used in this section, "alternative energy device" means any system
48 or mechanism or series of mechanisms using solar radiation, wind or geothermal
49 resource as defined in section 42-4002, Idaho Code, primarily to provide heat-
50 ing, to provide cooling, to produce electrical power, or any combination
51 thereof. Alternative energy device includes a fluid to air heat pump operating
52 on a fluid reservoir heated by solar radiation or geothermal resource. Alter-
53 native energy device shall also include either a natural gas heating unit, or
4
1 a propane heating unit, or a wood burning stove which meets the most current
2 environmental protection agency certification, or a pellet stove which meets
3 the most current industry and state standards, and which natural gas heating
4 unit, or propane heating unit, or wood burning stove which meets the most cur-
5 rent environmental protection agency certification, or pellet stove which
6 meets the most current industry and state standards is used to replace during
7 the same tax year a wood burning stove designed for residential heating and
8 that does not meet environmental protection agency requirements for certifica-
9 tion, provided the wood burning stove is surrendered to the division depart-
10 ment of environmental quality of the department of health and welfare or its
11 agent for destruction in accordance with applicable federal and state rules.
12 SECTION 3. That Section 63-3022K, Idaho Code, be, and the same is hereby
13 amended to read as follows:
14 63-3022K. MEDICAL SAVINGS ACCOUNT. (1) For taxable years commencing on
15 and after January 1, 1995, annual contributions to a medical savings account
16 not exceeding two thousand dollars ($2,000) for the account holder and inter-
17 est earned on a medical savings account shall be deducted from taxable income
18 by the account holder, if such amount has not been previously deducted or
19 excluded in arriving at taxable income. For married individuals the maximum
20 deduction shall be computed separately for each individual. Contributions to
21 the account shall not exceed the amount deductible under this section.
22 (2) For the purpose of this section, the following terms have the follow-
23 ing meanings unless the context clearly denotes otherwise:
24 (a) "Account holder" means an individual, in the case of married individ-
25 uals each spouse, including a self-employed person, on whose behalf the
26 medical savings account is established.
27 (b) "Dependent" means a person for whom a deduction is permitted under
28 section 151(b) or (c) of the Internal Revenue Code if a deduction for the
29 person is claimed for that person on the account holder's Idaho income tax
30 return.
31 (c) "Dependent child" means a child or grandchild of the account holder
32 who is not a dependent if the account holder actually pays the eligible
33 medical expenses of the child or grandchild and the child or grandchild is
34 any of the following:
35 (i) Under nineteen (19) years of age, or enrolled as a full-time
36 student at an accredited college or university.
37 (ii) Legally entitled to the provision of proper or necessary sub-
38 sistence, education, medical care or other care necessary for his or
39 her health, guidance or well-being and not otherwise emancipated,
40 self-supporting, married or a member of the armed forces of the
41 United States.
42 (iii) Mentally or physically incapacitated to the extent that he or
43 she is not self-sufficient.
44 (d) "Depository" means a state or national bank, savings and loan associ-
45 ation, credit union or trust company authorized to act as a fiduciary or
46 an insurance administrator or insurance company authorized to do business
47 in this state, a broker or investment advisor regulated by the department
48 of finance, a broker or insurance agent regulated by the department of
49 insurance or a health maintenance organization, fraternal benefit society,
50 hospital and professional service corporation as defined in section
51 41-3403, Idaho Code, or nonprofit mutual insurer regulated under title 41,
52 Idaho Code.
53 (e) "Eligible medical expense" means an expense paid by the taxpayer for
5
1 medical care described in section 213(d) of the Internal Revenue Code,
2 medical insurance premiums, dental and long-term care expenses of the
3 account holder and the spouse, dependents and dependent children of the
4 account holder.
5 (f) "Long-term care expenses" means expenses incurred in providing custo-
6 dial care in a nursing facility as defined in section 39-1301, Idaho
7 Code, and for insurance premiums relating to long-term care insurance
8 under chapter 46, title 41, Idaho Code.
9 (g) "Medical savings account" means an account established with a deposi-
10 tory to pay the eligible medical expenses of the account holder and the
11 dependents and dependent children of the account holder. Medical savings
12 accounts shall carry the name of the account holder, a designated benefi-
13 ciary or beneficiaries of the account holder and shall be designated by
14 the depository as a "medical savings account."
15 (3) Upon agreement between an employer and employee, an employer may
16 establish and contribute to the employee's medical savings account or contrib-
17 ute to an employee's existing medical savings account. The total combined
18 annual contributions by an employer and the account holder shall not exceed
19 two thousand dollars ($2,000) for the account holder. Employer contributions
20 to an employee's medical savings account shall be owned by the employee.
21 (4) Funds held in a medical savings account may be withdrawn by the
22 account holder at any time. Withdrawals for the purpose of paying eligible
23 medical expenses shall not be subject to the tax imposed in this chapter. The
24 burden of proving that a withdrawal from a medical savings account was made
25 for an eligible medical expense is upon the account holder and not upon the
26 depository or the employer of the account holder. Other withdrawals shall be
27 subject to the following restrictions and penalties:
28 (a) There shall be a distribution penalty for withdrawal of funds by the
29 account holder for purposes other than the payment of eligible medical
30 expenses. The penalty shall be ten percent (10%) of the amount of with-
31 drawal from the account and, in addition, the amount withdrawn shall be
32 subject to the tax imposed in this chapter. The direct transfer of funds
33 from a medical savings account to a medical savings account at a different
34 depository shall not be considered a withdrawal for purposes of this sec-
35 tion. Charges relating to the administration and maintenance of the
36 account by the depository are not withdrawals for purposes of this sec-
37 tion.
38 (b) After an account holder reaches fifty-nine and one-half (59 1/2)
39 years of age, withdrawals may be made for eligible medical expenses or for
40 any other reason without penalty, but subject to the tax imposed by this
41 section.
42 (c) Upon the death of an account holder, the account principal, as well
43 as any interest accumulated thereon, shall be distributed without penalty
44 to the designated beneficiary or beneficiaries.
45 (d) Funds withdrawn which are later reimbursed shall be taxable unless
46 redeposited into the account within sixty (60) days of the reimbursement.
47 Deposits of reimbursed eligible medical expenses shall not be included in
48 calculating the amount deductible.
49 (e) Funds deposited in a medical savings account which are deposited in
50 error or unintentionally and which are withdrawn within thirty (30) days
51 of being deposited shall be treated as if the amounts had not been depos-
52 ited in the medical savings account. Funds withdrawn from a medical sav-
53 ings account which are withdrawn in error or unintentionally and which are
54 redeposited within thirty (30) days of being withdrawn shall be treated as
55 if the amounts had not been withdrawn from the medical savings account.
6
1 (f) Funds withdrawn which are, not later than the sixtieth day after the
2 day of the withdrawal, deposited into another medical savings account for
3 the benefit of the same account holder are not a withdrawal for purposes
4 of this section and shall not be included in calculating the amount
5 deductible.
6 (5) Reporting. -- Depositories shall provide to the state tax commission
7 the following information regarding medical savings accounts: the name of the
8 account holder, the address of the account holder, the taxpayer identification
9 number of the account holder, deposits made during the tax year by the account
10 holder, withdrawals made during the tax year by the account holder, interest
11 earned on the proceeds of a medical savings account or other information
12 deemed necessary by the commission. Reports shall be filed annually on or
13 before the last day of February following the year to which the information in
14 the report relates.
15 (6) Any medical care savings account established pursuant to chapter 53,
16 title 41, Idaho Code, as enacted by chapter 186, laws of 1994, may be contin-
17 ued pursuant to the provisions of this section and all duties, privileges and
18 liabilities imposed in this section upon medical care savings accounts and the
19 beneficiaries of those accounts shall apply to medical care savings accounts
20 and their beneficiaries established pursuant to chapter 53, title 41, Idaho
21 Code, as enacted by chapter 186, laws of 1994, as if the medical care savings
22 account were a medical savings account established pursuant to this section.
23 (7) (a) If the account holder's surviving spouse acquires the account
24 holder's interest in a medical savings account by reason of being the des-
25 ignated beneficiary of such account at the death of the account holder,
26 the medical savings account shall be treated as if the spouse were the
27 account holder.
28 (b) If, by reason of the death of the account holder, any person acquires
29 the account holder's interest in a medical savings account in a case to
30 which subparagraph (7)(a) of this section does not apply:
31 (i) Such account shall cease to be a medical savings account as of
32 the date of death; and
33 (ii) An amount equal to the fair market value of the assets in such
34 account on such date shall be includable, if such person is not the
35 estate of such holder, in such person's Idaho taxable income for the
36 taxable year which includes such date, or if such person is the
37 estate of such holder, in such holder's Idaho taxable income for the
38 last taxable year of such holder.
39 (c) The amount includable in Idaho taxable income under subparagraph (b)
40 of this subsection (7) by any person, other than the estate, shall be
41 reduced by the amount of qualified medical expenses which were incurred by
42 the decedent before the date of the decedent's death and paid by such per-
43 son within one (1) year after such date.
44 SECTION 4. That Section 63-3022L, Idaho Code, be, and the same is hereby
45 amended to read as follows:
46 63-3022L. INDIVIDUALS WHO ARE OFFICERS, DIRECTORS, SHAREHOLDERS, PARTNERS
47 OR MEMBERS OF A CORPORATION OR PARTNERSHIP OR BENEFICIARIES OF A TRUST OR
48 ESTATE. (1) Individuals who are officers, directors, shareholders, partners or
49 members of a corporation or partnership transacting business in Idaho or who
50 are beneficiaries of a trust or estate with income taxable in Idaho may elect
51 to have Idaho tax relating to income described in subsection (2) of this sec-
52 tion reported and paid by the corporation, partnership, trust or estate.
53 Income subject to the election in this subsection shall be taxed at the rate
7
1 applicable to corporations. The election shall be made on the return of the
2 corporation, partnership, trust or estate from which the income is received.
3 The election in this section is not available to an individual who has Idaho
4 taxable income in addition to income described in subsection (2) of this sec-
5 tion.
6 (2) The election in subsection (1) of this section applies to:
7 (a) Wages, salary and other compensation paid by the corporation, part-
8 nership, trust or estate to such officers, directors, shareholders, part-
9 ners, members or beneficiaries to the extent the compensation is Idaho
10 taxable income of the individual to whom it is paid; under section
11 63-3026A, Idaho Code; and
12 (b) The share of any income, loss, deduction or credit of an S corpora-
13 tion, partnership, trust or estate required to be included on such
14 shareholder's, partner's, member's or beneficiary's federal Idaho return.
15 except that such amount shall first be apportioned and allocated in the
16 manner provided in section 63-3027, Idaho Code.
17 (c) When the gross income attributable to an individual under paragraphs
18 (a) and (b) of this subsection (2) is less than the filing requirement of
19 the individual under section 63-3030, Idaho Code, the income is not income
20 under this subsection.
21 (3) If no election is made and an officer, director, shareholder, part-
22 ner, member, or beneficiary of a corporation, partnership, trust or estate
23 transacting business in Idaho fails to file an Idaho income tax return report-
24 ing all or any part of the items described in subsection (2) of this section
25 or fails to pay any tax due thereon, such corporation, partnership, trust or
26 estate shall be liable for tax on such items at the rate applicable to corpo-
27 rations.
28 (4) The provisions of this section shall not apply to a corporation,
29 other than an S corporation, with less than fifty percent (50%) of its income
30 taxable within this state.
31 SECTION 5. That Section 63-3022O, Idaho Code, be, and the same is hereby
32 amended to read as follows:
33 63-3022O. HEALTH INSURANCE COSTS. With respect to a taxpayer who is a
34 self-employed individual treated as an employee pursuant to section 401(c)(1)
35 of the Internal Revenue Code, an amount equal to the amount paid by the tax-
36 payer during the taxable year for insurance, which constitutes medical care
37 for the taxpayer and the spouse and dependents of the taxpayer which is not
38 otherwise deductible by the taxpayer for federal income tax purposes because
39 the applicable percentage for that taxable year as specified pursuant to sec-
40 tion 162(1l) of the Internal Revenue Code is less than one hundred percent
41 (100%), shall be allowed as a deduction against taxable income.
42 SECTION 6. That Section 63-3029B, Idaho Code, be, and the same is hereby
43 amended to read as follows:
44 63-3029B. INCOME TAX CREDIT FOR CAPITAL INVESTMENT. (1) At the election
45 of the taxpayer there shall be allowed, subject to the applicable limitations
46 provided herein as a credit against the income tax imposed by chapter 30,
47 title 63, Idaho Code, an amount equal to the sum of:
48 (a) The tax credit carryovers; and
49 (b) The tax credit for the taxable year.
50 (2) The maximum allowable amount of the credit for the current taxable
51 year shall be three percent (3%) of the amount of qualified investments made
8
1 during the taxable year.
2 (3) As used in this section "qualified investment" means certain depre-
3 ciable property which:
4 (a) Is eligible for the federal investment tax credit, as defined in sec-
5 tions 46(c) and 48 of the Internal Revenue Code subject to the limitations
6 provided for certain regulated companies in section 46(f) of the Internal
7 Revenue Code and is not a motor vehicle under eight thousand (8,000)
8 pounds gross weight;
9 (b) Is acquired, constructed, reconstructed, erected or placed into ser-
10 vice after December 31, 1981; and
11 (c) Has a situs in Idaho.
12 (4) Notwithstanding the provisions of subsections (1) and (2) of this
13 section, the total amount of this and all other credits allowed under this
14 chapter, except for the credit allowed in section 63-3029, Idaho Code, shall
15 not exceed fifty percent (50%) of the tax liability of the taxpayer. The tax
16 liability of the taxpayer shall be the tax after deducting the credit allowed
17 by section 63-3029, Idaho Code.
18 (5) If the sum of credit carryovers from the credit allowed by subsection
19 (2) of this section and the amount of credit for the taxable year from the
20 credit allowed by subsection (2) of this section exceed the limitation imposed
21 by subsection (4) of this section for the current taxable year, the excess
22 attributable to the current taxable year's credit shall be an investment
23 credit carryover to the fourteen (14) succeeding taxable years. In the case of
24 a group of corporations filing a combined report under section 63-3027, Idaho
25 Code, or sections 63-3027B through 63-3027E, Idaho Code, credit earned by one
26 (1) member of the group but not used by that member may be used by another
27 member of the group, subject to the provisions of subsection (4) of this sec-
28 tion, instead of carried over. The entire amount of unused credit shall be
29 carried forward to the earliest of the succeeding years, wherein the oldest
30 available unused credit shall be used first, so long as the qualified invest-
31 ment property for which the unused credit was granted still maintains Idaho
32 situs. For a combined group of corporations, credit carried forward may be
33 claimed by any member of the group unless the member who earned the credit is
34 no longer included in the combined group.
35 (6) Any recapture of the credit allowed by subsection (2) of this section
36 on property disposed of or ceasing to qualify, prior to the close of its use-
37 ful life, shall be determined according to the applicable recapture provisions
38 of the Internal Revenue Code. In the case of a unitary group of corporations,
39 the increase in tax due to the recapture of investment tax credit must be
40 reported by the member of the group who earned the credit regardless of which
41 member claimed the credit against tax.
42 (7) For the purpose of determining whether property placed in service is
43 a "qualified investment" as defined in subsection (3) of this section, the
44 provisions of section 49 of the Internal Revenue Code shall be disregarded.
45 (8) For purposes of this section, property has a situs in Idaho during a
46 taxable year if it is used in Idaho at any time during the taxable year. Prop-
47 erty not used in Idaho during a taxable year does not have a situs in Idaho in
48 the taxable year during which the property is not used in Idaho or in any sub-
49 sequent taxable year. No credit or carryover of credit is permitted under this
50 section if the credit or carryover relates to property that does not have a
51 situs in Idaho during the taxable year for which the credit or carryover is
52 claimed. The Idaho situs of property must be established by records maintained
53 by the taxpayer which are created reasonably contemporaneously with the use of
54 the property.
55 (9) In the case of property used both in and outside Idaho, the taxpayer,
9
1 electing to claim the credit provided in this section, must elect to compute
2 the qualified investment in property with a situs in Idaho for all such
3 investments first qualifying during that year in one (1), but only one (1), of
4 the following ways:
5 (a) The amount of each qualified investment in a specific asset shall be
6 separately computed based on the percentage of the actual use of the prop-
7 erty in Idaho by using a measure of the use, such as total miles or total
8 machine hours, that most accurately reflects the beneficial use during the
9 taxable year in which it is first acquired, constructed, reconstructed,
10 erected or placed into service; provided, that the asset is placed in ser-
11 vice more than ninety (90) days before the end of the taxable year. In the
12 case of assets acquired, constructed, reconstructed, erected or placed
13 into service within ninety (90) days prior to the end of the taxable year
14 in which the investment first qualifies, the measure of the use of that
15 asset within Idaho for that year shall be based upon the percentage of use
16 in Idaho during the first ninety (90) days of use of the asset;
17 (b) The investment in qualified property used both inside and outside
18 Idaho during the taxable year in which it is first acquired, constructed,
19 reconstructed, erected or placed into service shall be multiplied by the
20 percent of the investment that would be included in the numerator of the
21 Idaho property factor determined pursuant to section 63-3027, Idaho Code,
22 for the same year.
23 (10) Only for the purposes of subsections (3)(a) and (7) of this section,
24 references to sections of the "Internal Revenue Code" mean the sections
25 referred to as they existed in the Internal Revenue Code of 1986 prior to
26 November 5, 1990.
27 SECTION 7. That Section 63-3029F, Idaho Code, be, and the same is hereby
28 amended to read as follows:
29 63-3029F. SPECIAL CREDIT AVAILABLE -- NEW EMPLOYEES. (1) Any taxpayer
30 shall be allowed a credit, in an amount determined under subsection (2) of
31 this section, against the tax imposed by this chapter, other than the tax
32 imposed by section 63-3082, Idaho Code, for any taxable year during which the
33 taxpayer's employment of new employees, as defined under section 63-3029E(1),
34 Idaho Code, increases above the taxpayer's average employment for either: (a)
35 the prior taxable year, or (b) the average of three (3) prior taxable years,
36 whichever is higher. No credit shall be allowed under this section unless the
37 number of new employees equals or exceeds one (1) person.
38 (2) The credit authorized in subsection (1) of this section shall be five
39 hundred dollars ($500) per new employee, but the total credit allowed shall
40 not exceed three and one-quarter percent (3.25%) of net income from the
41 taxpayer's corporate, proprietorship, partnership, small business corporation
42 or limited liability company revenue-producing enterprise in which the employ-
43 ment occurred. Additionally, the total amount of this and all other credits
44 allowed under this chapter except for the credits allowed under sections
45 63-3024A, 63-3025D and 63-3029, Idaho Code, taken during any taxable year
46 shall not exceed forty-five fifty percent (450%) of the tax otherwise imposed
47 on liability of the taxpayer. for the taxable year for which such credit is
48 allowed. The tax liability of the taxpayer shall be the tax after deducting
49 the credit allowed by section 63-3029, Idaho Code.
50 (3) If the sum of the credit carryovers from the credit allowed by sub-
51 section (2) of this section and the amount of credit for the taxable year from
52 the credit allowed by subsection (2) of this section exceed the limitation
53 imposed by subsection (2) of this section for the current taxable year, the
10
1 excess attributable to the current taxable year's credit shall be a credit
2 carryover to the three (3) succeeding taxable years. The entire amount of
3 unused credit shall be carried forward to the earliest of the succeeding
4 years, wherein the oldest available unused credit shall be used first, so long
5 as the employment level for which the credit was granted is still maintained.
6 SECTION 8. That Section 63-3046, Idaho Code, be, and the same is hereby
7 amended to read as follows:
8 63-3046. PENALTIES AND ADDITIONS TO THE TAX IN CASE OF DEFICIENCY. (a) If
9 any part of any deficiency is due to negligence or disregard of rules but
10 without intent to defraud, five percent (5%) of the total amount of the defi-
11 ciency (in addition to such deficiency) shall be assessed, collected and paid
12 in the same manner as if it were a deficiency.
13 (b) If any part of any deficiency is due to fraud with intent to evade
14 tax, then fifty percent (50%) of the total amount of the deficiency (in addi-
15 tion to such deficiency) shall be so assessed, collected and paid.
16 (c) (1) In the event the return required by this chapter is not filed,
17 there may be collected a penalty of five percent (5%) of the tax due on
18 such returns for each month elapsing after the due date (including exten-
19 sions) of such returns until the return is filed. or the penalty amounts
20 to twenty-five percent (25%) of the tax due on such returns.
21 (d2) In the event the return required by this chapter is filed but the
22 tax shown thereon to be due is not paid, there may be collected a penalty
23 of one-half percent (0.5%) of the tax due on such return for each month
24 elapsing after the later of the due date of such return or the date the
25 return was filed until the tax is paid. or the penalty amounts to twenty-
26 five percent (25%) of the tax due on such returns.
27 (ed) (1) If there is a substantial understatement of tax for any taxable
28 year, there shall be added to the tax an amount equal to ten percent (10%)
29 of the amount of any underpayment attributable to such understatement.
30 (2) For purposes of this subsection, there is a substantial understate-
31 ment of tax for any taxable year if the amount of the understatement for
32 the taxable year exceeds the greater of:
33 (i) Ten percent (10%) of the tax required to be shown on the return
34 for the taxable year, or
35 (ii) Five thousand dollars ($5,000).
36 (3) In the case of a corporation, paragraph (ed)(2)(ii) of this section
37 shall be applied by substituting ten thousand dollars ($10,000) for five
38 thousand dollars ($5,000).
39 (4) For purposes of paragraph (ed)(2) of this section, the term
40 "understatement" means the excess of:
41 (i) The amount of tax required to be shown on the return for the
42 taxable year, over
43 (ii) The amount of the tax imposed which is shown on the return.
44 (5) The amount of the understatement under paragraph (4) shall be reduced
45 by that portion of the understatement which is attributable to:
46 (i) The tax treatment of any item by the taxpayer if there is or was
47 substantial authority for such treatment, or
48 (ii) Any item with respect to which the relevant facts affecting the
49 item's tax treatment are adequately disclosed in the return or in a
50 statement attached to the return.
51 (6) In the case of any item attributable to a tax shelter as defined in
52 section 6661 of the Internal Revenue Code:
53 (i) Paragraph (5)(ii) shall not apply, and
11
1 (ii) Paragraph (5)(i) shall not apply unless (in addition to meeting
2 the requirements of such paragraph) the taxpayer reasonably believed
3 that the tax treatment of such item by the taxpayer was more likely
4 than not the proper treatment.
5 (7) The state tax commission may waive all or any part of the addition to
6 tax provided by this section on a showing by the taxpayer that there was
7 reasonable cause for the understatement (or part thereof) and that the
8 taxpayer acted in good faith.
9 (fe) (1) Any person who fails to file a statement of payment to another
10 person required by this chapter, including the duplicate statement of tax
11 withheld on wages, on the date prescribed therefor (including any exten-
12 sion of time for filing) shall, be subject to a penalty of two dollars
13 ($2.00) for each month or part of a month each statement is not so filed,
14 but the total amount imposed on the delinquent person for all such fail-
15 ures during any calendar year shall not exceed two thousand dollars
16 ($2,000).
17 (2) Any employer required to register under the provisions of section
18 63-3035, Idaho Code, who fails to register after receiving written notice
19 from the state tax commission of the requirement to register shall be sub-
20 ject to a penalty of one hundred dollars ($100) for each month or part of
21 a month after the date of the notice during which the failure occurs.
22 (3) The penalties provided in this subsection shall not apply if the per-
23 son shows that the failure to register is due to reasonable cause and not
24 to willful neglect.
25 (4) The state tax commission shall give notice of any penalty provided in
26 this subsection and shall assess the penalties in the manner provided for
27 deficiencies of tax.
28 (gf) If the penalty to be added to the tax by subsection (a), (b),
29 (c)(1), (d), or (e) or (f) of this section or by section 63-3033, Idaho Code,
30 is less than ten dollars ($10.00), the penalty to be added to the tax shall be
31 a minimum of ten dollars ($10.00).
32 (g) Total penalties imposed under subsections (a), (c) and (d) of this
33 section and under section 63-3033, Idaho Code, shall not exceed twenty-five
34 percent (25%) of the tax due on the return.
35 (h) A processing charge to be determined and established annually by the
36 state tax commission shall be collected from any person who draws or delivers
37 a check, draft or order for the payment of money in complete or partial satis-
38 faction of the tax imposed by this chapter if that person does not have suffi-
39 cient funds in or credit with the bank or depository upon which the check,
40 draft or order is drawn. Money collected under this subsection shall be paid
41 to the state tax commission to defer costs of handling such checks, drafts or
42 orders.
43 SECTION 9. An emergency existing therefor, which emergency is hereby
44 declared to exist, Sections 1 through 7 of this act shall be in full force and
45 effect on and after its passage and approval, and retroactively to January 1,
46 2001; and Section 8 of this act shall be in full force and effect on and after
47 its passage and approval.
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
Moved by Thorne
Seconded by Wheeler
IN THE SENATE
SENATE AMENDMENT TO H.B. NO. 121
1 AMENDMENT TO SECTION 6
2 On page 8 of the printed bill, delete lines 13 and 14, and insert:
3 "section, the amount of the credit allowed shall".
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 121, As Amended in the Senate
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO THE IDAHO INCOME TAX ACT; AMENDING SECTION 63-3022, IDAHO CODE, TO
3 CLARIFY THE ADJUSTMENT TO TAXABLE INCOME INCLUDING ADJUSTMENTS FOR TAXES
4 PAID OTHER STATES, FOR NET OPERATING LOSSES OF TRUSTS AND ESTATES AND FOR
5 CERTAIN LUMP SUM DISTRIBUTIONS AND TO MAKE A TECHNICAL CORRECTION; AMEND-
6 ING SECTION 63-3022C, IDAHO CODE, TO CORRECT A REFERENCE TO THE DIVISION
7 OF ENVIRONMENTAL QUALITY; AMENDING SECTION 63-3022K, IDAHO CODE, TO STRIKE
8 REDUNDANT LANGUAGE AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION
9 63-3022L, IDAHO CODE, TO CLARIFY THE ELECTION TO PAY TAX OF CERTAIN PART-
10 NERS, SHAREHOLDERS OR MEMBERS OF A CORPORATION, PARTNERSHIP OR TRUST;
11 AMENDING SECTION 63-3022O, IDAHO CODE, TO CORRECT A CROSS REFERENCE;
12 AMENDING SECTION 63-3029B, IDAHO CODE, TO COORDINATE THE INVESTMENT TAX
13 CREDIT WITH OTHER CREDITS; AMENDING SECTION 63-3029F, IDAHO CODE, TO
14 INCREASE THE LIMITATION ON THE NEW JOBS CREDIT AND TO COORDINATE THE
15 CREDIT WITH OTHER CREDITS; AMENDING SECTION 63-3046, IDAHO CODE, TO REMOVE
16 INCONSISTENCIES BETWEEN PROVISIONS RELATING TO PENALTIES; DECLARING AN
17 EMERGENCY AND PROVIDING A RETROACTIVE EFFECTIVE DATE FOR SECTIONS 1
18 THROUGH 7, AND DECLARING AN EMERGENCY FOR SECTION 8 OF THIS ACT.
19 Be It Enacted by the Legislature of the State of Idaho:
20 SECTION 1. That Section 63-3022, Idaho Code, be, and the same is hereby
21 amended to read as follows:
22 63-3022. ADJUSTMENTS TO TAXABLE INCOME. The additions and subtractions
23 set forth in this section, and in sections 63-3022A through 63-3022M, Idaho
24 Code, are to be applied to the extent allowed in computing Idaho taxable
25 income:
26 (a) Add any state and local taxes, as defined in section 164 of the
27 Internal Revenue Code and, measured by net income, paid or accrued during the
28 taxable year adjusted for state or local tax refunds used in arriving at tax-
29 able income.
30 (b) Add the net operating loss deduction used in arriving at taxable
31 income.
32 (c) (1) A net operating loss for any taxable year commencing on and after
33 January 1, 2000, shall be a net operating loss carryback not to exceed a
34 total of one hundred thousand dollars ($100,000) to the two (2) immedi-
35 ately preceding taxable years. Any portion of the net operating loss not
36 subtracted in the two (2) preceding years may be subtracted in the next
37 twenty (20) years succeeding the taxable year in which the loss arises in
38 order until exhausted. The sum of the deductions may not exceed the amount
39 of the net operating loss deduction incurred. At the election of the tax-
40 payer, the two (2) year carryback may be foregone and the loss subtracted
41 from income received in taxable years arising in the next twenty (20)
42 years succeeding the taxable year in which the loss arises in order until
43 exhausted. The election shall be made as under section 172(b)(3) of the
2
1 Internal Revenue Code. An election under this subsection must be in the
2 manner prescribed in the rules of the state tax commission and once made
3 is irrevocable for the year in which it is made. The term "income" as used
4 in this subsection (c) means Idaho taxable income as defined in this chap-
5 ter as modified by section 63-3021(b)(2), (3) and (4), Idaho Code.
6 (2) Net operating losses incurred by a corporation during a year in which
7 such corporation did not transact business in Idaho or was not included in
8 a group of corporations combined under subsection (t) of section 63-3027,
9 Idaho Code, may not be subtracted. However, if at least one (1) corpora-
10 tion within a group of corporations combined under subsection (t) of sec-
11 tion 63-3027, Idaho Code, was transacting business in Idaho during the
12 taxable year in which the loss was incurred, then the net operating loss
13 may be subtracted. Net operating losses incurred by a person, other than a
14 corporation, in business activities not taxable by Idaho may not be sub-
15 tracted.
16 (d) In the case of a corporation, add the amount deducted under the pro-
17 visions of sections 243(a) and (c), 244, 245 and 246A of the Internal Revenue
18 Code (relating to dividends received by corporations) as limited by section
19 246(b)(1) of said code.
20 (e) In the case of a corporation, subtract an amount determined under
21 section 78 of the Internal Revenue Code to be taxable as dividends.
22 (f) Subtract the amount of any income received or accrued during the tax-
23 able year which is exempt from taxation by this state, under the provisions of
24 any other law of this state or a law of the United States, if not previously
25 subtracted in arriving at taxable income.
26 (g) For the purpose of determining the Idaho taxable income of the bene-
27 ficiary of a trust or of an estate,:
28 (1) Ddistributable net income as defined for federal tax purposes shall
29 be corrected for the other adjustments required by this section. In the
30 event that a nonresident beneficiary of a trust or estate fails to file an
31 Idaho income tax return reporting all or any part of distributable net
32 income taxable in Idaho or fails to pay any tax due thereon, the trust or
33 estate making the payment or distribution shall be taxable upon the amount
34 of such distribution or payment at the rates established by section
35 63-3024, Idaho Code
36 (2) Net operating losses attributable to a beneficiary of a trust or
37 estate under section 642 of the Internal Revenue Code shall be a deduction
38 for the beneficiary to the extent that income from the trust or estate
39 would be attributable to this state under the provisions of this chapter.
40 (h) In the case of an individual who is on active duty as a full-time
41 officer, enlistee or draftee, with the armed forces of the United States,
42 which full-time duty is or will be continuous and uninterrupted for one hun-
43 dred twenty (120) consecutive days or more, deduct compensation paid by the
44 armed forces of the United States for services performed outside this state.
45 The deduction is allowed only to the extent such income is included in taxable
46 income, and provided that appropriate adjustments shall be made in determining
47 the deductions and exemptions allowed pursuant to section 63-3026A(4), Idaho
48 Code.
49 (i) In the case of a corporation, including any corporation included in a
50 group of corporations combined under subsection (t) of section 63-3027, Idaho
51 Code, add any capital loss deducted which loss was incurred during any year in
52 which such corporation did not transact business in Idaho. However, do not add
53 any capital loss deducted if a corporation, including any corporation in a
54 group of corporations combined under subsection (t) of section 63-3027, Idaho
55 Code, was transacting business in Idaho during the taxable year in which the
3
1 loss was incurred. In the case of persons, other than corporations, add any
2 capital loss deducted which was incurred in business activities not taxable by
3 Idaho at the time such loss was incurred. In computing the income taxable to
4 an S corporation or partnership under this section, deduction shall not be
5 allowed for a carryover or carryback of a net operating loss provided for in
6 subsection (c) of this section or a capital loss provided for in section 1212
7 of the Internal Revenue Code.
8 (j) In the case of an individual, there shall be allowed as a deduction
9 from gross income either (1) or (2) at the option of the taxpayer:
10 (1) The standard deduction as defined in section 63, Internal Revenue
11 Code.
12 (2) Itemized deductions as defined in section 63 of the Internal Revenue
13 Code except state income or local taxes measured by net income and as
14 specified defined in section 164 of the Internal Revenue Code.
15 (k) Add the taxable amount of any lump sum distribution deducted from
16 gross income pursuant to section 402(d)(3) of the Internal Revenue Code
17 excluded from gross income for federal income tax purposes under the ten (10)
18 year averaging method. The taxable amount will include the ordinary income
19 portion and the amount eligible for the capital gain election.
20 (l) Deduct any amounts included in gross income under the provisions of
21 section 86 of the Internal Revenue Code relating to certain social security
22 and railroad benefits.
23 (m) In the case of a self-employed individual, deduct the actual cost of
24 premiums paid to secure worker's compensation insurance for coverage in Idaho,
25 if such cost has not been deducted in arriving at taxable income.
26 (on) In the case of an individual, deduct the amount contributed to a
27 college savings program pursuant to chapter 54, title 33, Idaho Code, but not
28 more than four thousand dollars ($4,000) per tax year.
29 SECTION 2. That Section 63-3022C, Idaho Code, be, and the same is hereby
30 amended to read as follows:
31 63-3022C. DEDUCTION FOR ALTERNATIVE ENERGY DEVICE AT RESIDENCE. (1) An
32 individual taxpayer who installs an alternative energy device to serve a place
33 of residence of the individual taxpayer in the state of Idaho may deduct from
34 taxable income the following amounts actually paid or accrued by the individ-
35 ual taxpayer: forty percent (40%) of the amount that is properly attributable
36 to the construction, reconstruction, remodeling, installation or acquisition
37 of the alternative energy device in the year when such device is completed or
38 acquired and is placed in service by the taxpayer; and twenty percent (20%)
39 per year thereafter for a period of three (3) succeeding years; provided, how-
40 ever, that said deduction shall not exceed five thousand dollars ($5,000) in
41 any one (1) taxable year.
42 (2) An individual taxpayer who purchases a residence in the state of
43 Idaho served by an alternative energy device for which none or less than all
44 of the total deduction allowable under this section has been taken, may take
45 the deduction specified in this section, or the unused balance of the deduc-
46 tion.
47 (3) As used in this section, "alternative energy device" means any system
48 or mechanism or series of mechanisms using solar radiation, wind or geothermal
49 resource as defined in section 42-4002, Idaho Code, primarily to provide heat-
50 ing, to provide cooling, to produce electrical power, or any combination
51 thereof. Alternative energy device includes a fluid to air heat pump operating
52 on a fluid reservoir heated by solar radiation or geothermal resource. Alter-
53 native energy device shall also include either a natural gas heating unit, or
4
1 a propane heating unit, or a wood burning stove which meets the most current
2 environmental protection agency certification, or a pellet stove which meets
3 the most current industry and state standards, and which natural gas heating
4 unit, or propane heating unit, or wood burning stove which meets the most cur-
5 rent environmental protection agency certification, or pellet stove which
6 meets the most current industry and state standards is used to replace during
7 the same tax year a wood burning stove designed for residential heating and
8 that does not meet environmental protection agency requirements for certifica-
9 tion, provided the wood burning stove is surrendered to the division depart-
10 ment of environmental quality of the department of health and welfare or its
11 agent for destruction in accordance with applicable federal and state rules.
12 SECTION 3. That Section 63-3022K, Idaho Code, be, and the same is hereby
13 amended to read as follows:
14 63-3022K. MEDICAL SAVINGS ACCOUNT. (1) For taxable years commencing on
15 and after January 1, 1995, annual contributions to a medical savings account
16 not exceeding two thousand dollars ($2,000) for the account holder and inter-
17 est earned on a medical savings account shall be deducted from taxable income
18 by the account holder, if such amount has not been previously deducted or
19 excluded in arriving at taxable income. For married individuals the maximum
20 deduction shall be computed separately for each individual. Contributions to
21 the account shall not exceed the amount deductible under this section.
22 (2) For the purpose of this section, the following terms have the follow-
23 ing meanings unless the context clearly denotes otherwise:
24 (a) "Account holder" means an individual, in the case of married individ-
25 uals each spouse, including a self-employed person, on whose behalf the
26 medical savings account is established.
27 (b) "Dependent" means a person for whom a deduction is permitted under
28 section 151(b) or (c) of the Internal Revenue Code if a deduction for the
29 person is claimed for that person on the account holder's Idaho income tax
30 return.
31 (c) "Dependent child" means a child or grandchild of the account holder
32 who is not a dependent if the account holder actually pays the eligible
33 medical expenses of the child or grandchild and the child or grandchild is
34 any of the following:
35 (i) Under nineteen (19) years of age, or enrolled as a full-time
36 student at an accredited college or university.
37 (ii) Legally entitled to the provision of proper or necessary sub-
38 sistence, education, medical care or other care necessary for his or
39 her health, guidance or well-being and not otherwise emancipated,
40 self-supporting, married or a member of the armed forces of the
41 United States.
42 (iii) Mentally or physically incapacitated to the extent that he or
43 she is not self-sufficient.
44 (d) "Depository" means a state or national bank, savings and loan associ-
45 ation, credit union or trust company authorized to act as a fiduciary or
46 an insurance administrator or insurance company authorized to do business
47 in this state, a broker or investment advisor regulated by the department
48 of finance, a broker or insurance agent regulated by the department of
49 insurance or a health maintenance organization, fraternal benefit society,
50 hospital and professional service corporation as defined in section
51 41-3403, Idaho Code, or nonprofit mutual insurer regulated under title 41,
52 Idaho Code.
53 (e) "Eligible medical expense" means an expense paid by the taxpayer for
5
1 medical care described in section 213(d) of the Internal Revenue Code,
2 medical insurance premiums, dental and long-term care expenses of the
3 account holder and the spouse, dependents and dependent children of the
4 account holder.
5 (f) "Long-term care expenses" means expenses incurred in providing custo-
6 dial care in a nursing facility as defined in section 39-1301, Idaho
7 Code, and for insurance premiums relating to long-term care insurance
8 under chapter 46, title 41, Idaho Code.
9 (g) "Medical savings account" means an account established with a deposi-
10 tory to pay the eligible medical expenses of the account holder and the
11 dependents and dependent children of the account holder. Medical savings
12 accounts shall carry the name of the account holder, a designated benefi-
13 ciary or beneficiaries of the account holder and shall be designated by
14 the depository as a "medical savings account."
15 (3) Upon agreement between an employer and employee, an employer may
16 establish and contribute to the employee's medical savings account or contrib-
17 ute to an employee's existing medical savings account. The total combined
18 annual contributions by an employer and the account holder shall not exceed
19 two thousand dollars ($2,000) for the account holder. Employer contributions
20 to an employee's medical savings account shall be owned by the employee.
21 (4) Funds held in a medical savings account may be withdrawn by the
22 account holder at any time. Withdrawals for the purpose of paying eligible
23 medical expenses shall not be subject to the tax imposed in this chapter. The
24 burden of proving that a withdrawal from a medical savings account was made
25 for an eligible medical expense is upon the account holder and not upon the
26 depository or the employer of the account holder. Other withdrawals shall be
27 subject to the following restrictions and penalties:
28 (a) There shall be a distribution penalty for withdrawal of funds by the
29 account holder for purposes other than the payment of eligible medical
30 expenses. The penalty shall be ten percent (10%) of the amount of with-
31 drawal from the account and, in addition, the amount withdrawn shall be
32 subject to the tax imposed in this chapter. The direct transfer of funds
33 from a medical savings account to a medical savings account at a different
34 depository shall not be considered a withdrawal for purposes of this sec-
35 tion. Charges relating to the administration and maintenance of the
36 account by the depository are not withdrawals for purposes of this sec-
37 tion.
38 (b) After an account holder reaches fifty-nine and one-half (59 1/2)
39 years of age, withdrawals may be made for eligible medical expenses or for
40 any other reason without penalty, but subject to the tax imposed by this
41 section.
42 (c) Upon the death of an account holder, the account principal, as well
43 as any interest accumulated thereon, shall be distributed without penalty
44 to the designated beneficiary or beneficiaries.
45 (d) Funds withdrawn which are later reimbursed shall be taxable unless
46 redeposited into the account within sixty (60) days of the reimbursement.
47 Deposits of reimbursed eligible medical expenses shall not be included in
48 calculating the amount deductible.
49 (e) Funds deposited in a medical savings account which are deposited in
50 error or unintentionally and which are withdrawn within thirty (30) days
51 of being deposited shall be treated as if the amounts had not been depos-
52 ited in the medical savings account. Funds withdrawn from a medical sav-
53 ings account which are withdrawn in error or unintentionally and which are
54 redeposited within thirty (30) days of being withdrawn shall be treated as
55 if the amounts had not been withdrawn from the medical savings account.
6
1 (f) Funds withdrawn which are, not later than the sixtieth day after the
2 day of the withdrawal, deposited into another medical savings account for
3 the benefit of the same account holder are not a withdrawal for purposes
4 of this section and shall not be included in calculating the amount
5 deductible.
6 (5) Reporting. -- Depositories shall provide to the state tax commission
7 the following information regarding medical savings accounts: the name of the
8 account holder, the address of the account holder, the taxpayer identification
9 number of the account holder, deposits made during the tax year by the account
10 holder, withdrawals made during the tax year by the account holder, interest
11 earned on the proceeds of a medical savings account or other information
12 deemed necessary by the commission. Reports shall be filed annually on or
13 before the last day of February following the year to which the information in
14 the report relates.
15 (6) Any medical care savings account established pursuant to chapter 53,
16 title 41, Idaho Code, as enacted by chapter 186, laws of 1994, may be contin-
17 ued pursuant to the provisions of this section and all duties, privileges and
18 liabilities imposed in this section upon medical care savings accounts and the
19 beneficiaries of those accounts shall apply to medical care savings accounts
20 and their beneficiaries established pursuant to chapter 53, title 41, Idaho
21 Code, as enacted by chapter 186, laws of 1994, as if the medical care savings
22 account were a medical savings account established pursuant to this section.
23 (7) (a) If the account holder's surviving spouse acquires the account
24 holder's interest in a medical savings account by reason of being the des-
25 ignated beneficiary of such account at the death of the account holder,
26 the medical savings account shall be treated as if the spouse were the
27 account holder.
28 (b) If, by reason of the death of the account holder, any person acquires
29 the account holder's interest in a medical savings account in a case to
30 which subparagraph (7)(a) of this section does not apply:
31 (i) Such account shall cease to be a medical savings account as of
32 the date of death; and
33 (ii) An amount equal to the fair market value of the assets in such
34 account on such date shall be includable, if such person is not the
35 estate of such holder, in such person's Idaho taxable income for the
36 taxable year which includes such date, or if such person is the
37 estate of such holder, in such holder's Idaho taxable income for the
38 last taxable year of such holder.
39 (c) The amount includable in Idaho taxable income under subparagraph (b)
40 of this subsection (7) by any person, other than the estate, shall be
41 reduced by the amount of qualified medical expenses which were incurred by
42 the decedent before the date of the decedent's death and paid by such per-
43 son within one (1) year after such date.
44 SECTION 4. That Section 63-3022L, Idaho Code, be, and the same is hereby
45 amended to read as follows:
46 63-3022L. INDIVIDUALS WHO ARE OFFICERS, DIRECTORS, SHAREHOLDERS, PARTNERS
47 OR MEMBERS OF A CORPORATION OR PARTNERSHIP OR BENEFICIARIES OF A TRUST OR
48 ESTATE. (1) Individuals who are officers, directors, shareholders, partners or
49 members of a corporation or partnership transacting business in Idaho or who
50 are beneficiaries of a trust or estate with income taxable in Idaho may elect
51 to have Idaho tax relating to income described in subsection (2) of this sec-
52 tion reported and paid by the corporation, partnership, trust or estate.
53 Income subject to the election in this subsection shall be taxed at the rate
7
1 applicable to corporations. The election shall be made on the return of the
2 corporation, partnership, trust or estate from which the income is received.
3 The election in this section is not available to an individual who has Idaho
4 taxable income in addition to income described in subsection (2) of this sec-
5 tion.
6 (2) The election in subsection (1) of this section applies to:
7 (a) Wages, salary and other compensation paid by the corporation, part-
8 nership, trust or estate to such officers, directors, shareholders, part-
9 ners, members or beneficiaries to the extent the compensation is Idaho
10 taxable income of the individual to whom it is paid; under section
11 63-3026A, Idaho Code; and
12 (b) The share of any income, loss, deduction or credit of an S corpora-
13 tion, partnership, trust or estate required to be included on such
14 shareholder's, partner's, member's or beneficiary's federal Idaho return.
15 except that such amount shall first be apportioned and allocated in the
16 manner provided in section 63-3027, Idaho Code.
17 (c) When the gross income attributable to an individual under paragraphs
18 (a) and (b) of this subsection (2) is less than the filing requirement of
19 the individual under section 63-3030, Idaho Code, the income is not income
20 under this subsection.
21 (3) If no election is made and an officer, director, shareholder, part-
22 ner, member, or beneficiary of a corporation, partnership, trust or estate
23 transacting business in Idaho fails to file an Idaho income tax return report-
24 ing all or any part of the items described in subsection (2) of this section
25 or fails to pay any tax due thereon, such corporation, partnership, trust or
26 estate shall be liable for tax on such items at the rate applicable to corpo-
27 rations.
28 (4) The provisions of this section shall not apply to a corporation,
29 other than an S corporation, with less than fifty percent (50%) of its income
30 taxable within this state.
31 SECTION 5. That Section 63-3022O, Idaho Code, be, and the same is hereby
32 amended to read as follows:
33 63-3022O. HEALTH INSURANCE COSTS. With respect to a taxpayer who is a
34 self-employed individual treated as an employee pursuant to section 401(c)(1)
35 of the Internal Revenue Code, an amount equal to the amount paid by the tax-
36 payer during the taxable year for insurance, which constitutes medical care
37 for the taxpayer and the spouse and dependents of the taxpayer which is not
38 otherwise deductible by the taxpayer for federal income tax purposes because
39 the applicable percentage for that taxable year as specified pursuant to sec-
40 tion 162(1l) of the Internal Revenue Code is less than one hundred percent
41 (100%), shall be allowed as a deduction against taxable income.
42 SECTION 6. That Section 63-3029B, Idaho Code, be, and the same is hereby
43 amended to read as follows:
44 63-3029B. INCOME TAX CREDIT FOR CAPITAL INVESTMENT. (1) At the election
45 of the taxpayer there shall be allowed, subject to the applicable limitations
46 provided herein as a credit against the income tax imposed by chapter 30,
47 title 63, Idaho Code, an amount equal to the sum of:
48 (a) The tax credit carryovers; and
49 (b) The tax credit for the taxable year.
50 (2) The maximum allowable amount of the credit for the current taxable
51 year shall be three percent (3%) of the amount of qualified investments made
8
1 during the taxable year.
2 (3) As used in this section "qualified investment" means certain depre-
3 ciable property which:
4 (a) Is eligible for the federal investment tax credit, as defined in sec-
5 tions 46(c) and 48 of the Internal Revenue Code subject to the limitations
6 provided for certain regulated companies in section 46(f) of the Internal
7 Revenue Code and is not a motor vehicle under eight thousand (8,000)
8 pounds gross weight;
9 (b) Is acquired, constructed, reconstructed, erected or placed into ser-
10 vice after December 31, 1981; and
11 (c) Has a situs in Idaho.
12 (4) Notwithstanding the provisions of subsections (1) and (2) of this
13 section, the amount of the credit allowed shall not exceed fifty percent (50%)
14 of the tax liability of the taxpayer. The tax liability of the taxpayer shall
15 be the tax after deducting the credit allowed by section 63-3029, Idaho Code.
16 (5) If the sum of credit carryovers from the credit allowed by subsection
17 (2) of this section and the amount of credit for the taxable year from the
18 credit allowed by subsection (2) of this section exceed the limitation imposed
19 by subsection (4) of this section for the current taxable year, the excess
20 attributable to the current taxable year's credit shall be an investment
21 credit carryover to the fourteen (14) succeeding taxable years. In the case of
22 a group of corporations filing a combined report under section 63-3027, Idaho
23 Code, or sections 63-3027B through 63-3027E, Idaho Code, credit earned by one
24 (1) member of the group but not used by that member may be used by another
25 member of the group, subject to the provisions of subsection (4) of this sec-
26 tion, instead of carried over. The entire amount of unused credit shall be
27 carried forward to the earliest of the succeeding years, wherein the oldest
28 available unused credit shall be used first, so long as the qualified invest-
29 ment property for which the unused credit was granted still maintains Idaho
30 situs. For a combined group of corporations, credit carried forward may be
31 claimed by any member of the group unless the member who earned the credit is
32 no longer included in the combined group.
33 (6) Any recapture of the credit allowed by subsection (2) of this section
34 on property disposed of or ceasing to qualify, prior to the close of its use-
35 ful life, shall be determined according to the applicable recapture provisions
36 of the Internal Revenue Code. In the case of a unitary group of corporations,
37 the increase in tax due to the recapture of investment tax credit must be
38 reported by the member of the group who earned the credit regardless of which
39 member claimed the credit against tax.
40 (7) For the purpose of determining whether property placed in service is
41 a "qualified investment" as defined in subsection (3) of this section, the
42 provisions of section 49 of the Internal Revenue Code shall be disregarded.
43 (8) For purposes of this section, property has a situs in Idaho during a
44 taxable year if it is used in Idaho at any time during the taxable year. Prop-
45 erty not used in Idaho during a taxable year does not have a situs in Idaho in
46 the taxable year during which the property is not used in Idaho or in any sub-
47 sequent taxable year. No credit or carryover of credit is permitted under this
48 section if the credit or carryover relates to property that does not have a
49 situs in Idaho during the taxable year for which the credit or carryover is
50 claimed. The Idaho situs of property must be established by records maintained
51 by the taxpayer which are created reasonably contemporaneously with the use of
52 the property.
53 (9) In the case of property used both in and outside Idaho, the taxpayer,
54 electing to claim the credit provided in this section, must elect to compute
55 the qualified investment in property with a situs in Idaho for all such
9
1 investments first qualifying during that year in one (1), but only one (1), of
2 the following ways:
3 (a) The amount of each qualified investment in a specific asset shall be
4 separately computed based on the percentage of the actual use of the prop-
5 erty in Idaho by using a measure of the use, such as total miles or total
6 machine hours, that most accurately reflects the beneficial use during the
7 taxable year in which it is first acquired, constructed, reconstructed,
8 erected or placed into service; provided, that the asset is placed in ser-
9 vice more than ninety (90) days before the end of the taxable year. In the
10 case of assets acquired, constructed, reconstructed, erected or placed
11 into service within ninety (90) days prior to the end of the taxable year
12 in which the investment first qualifies, the measure of the use of that
13 asset within Idaho for that year shall be based upon the percentage of use
14 in Idaho during the first ninety (90) days of use of the asset;
15 (b) The investment in qualified property used both inside and outside
16 Idaho during the taxable year in which it is first acquired, constructed,
17 reconstructed, erected or placed into service shall be multiplied by the
18 percent of the investment that would be included in the numerator of the
19 Idaho property factor determined pursuant to section 63-3027, Idaho Code,
20 for the same year.
21 (10) Only for the purposes of subsections (3)(a) and (7) of this section,
22 references to sections of the "Internal Revenue Code" mean the sections
23 referred to as they existed in the Internal Revenue Code of 1986 prior to
24 November 5, 1990.
25 SECTION 7. That Section 63-3029F, Idaho Code, be, and the same is hereby
26 amended to read as follows:
27 63-3029F. SPECIAL CREDIT AVAILABLE -- NEW EMPLOYEES. (1) Any taxpayer
28 shall be allowed a credit, in an amount determined under subsection (2) of
29 this section, against the tax imposed by this chapter, other than the tax
30 imposed by section 63-3082, Idaho Code, for any taxable year during which the
31 taxpayer's employment of new employees, as defined under section 63-3029E(1),
32 Idaho Code, increases above the taxpayer's average employment for either: (a)
33 the prior taxable year, or (b) the average of three (3) prior taxable years,
34 whichever is higher. No credit shall be allowed under this section unless the
35 number of new employees equals or exceeds one (1) person.
36 (2) The credit authorized in subsection (1) of this section shall be five
37 hundred dollars ($500) per new employee, but the total credit allowed shall
38 not exceed three and one-quarter percent (3.25%) of net income from the
39 taxpayer's corporate, proprietorship, partnership, small business corporation
40 or limited liability company revenue-producing enterprise in which the employ-
41 ment occurred. Additionally, the total amount of this and all other credits
42 allowed under this chapter except for the credits allowed under sections
43 63-3024A, 63-3025D and 63-3029, Idaho Code, taken during any taxable year
44 shall not exceed forty-five fifty percent (450%) of the tax otherwise imposed
45 on liability of the taxpayer. for the taxable year for which such credit is
46 allowed. The tax liability of the taxpayer shall be the tax after deducting
47 the credit allowed by section 63-3029, Idaho Code.
48 (3) If the sum of the credit carryovers from the credit allowed by sub-
49 section (2) of this section and the amount of credit for the taxable year from
50 the credit allowed by subsection (2) of this section exceed the limitation
51 imposed by subsection (2) of this section for the current taxable year, the
52 excess attributable to the current taxable year's credit shall be a credit
53 carryover to the three (3) succeeding taxable years. The entire amount of
10
1 unused credit shall be carried forward to the earliest of the succeeding
2 years, wherein the oldest available unused credit shall be used first, so long
3 as the employment level for which the credit was granted is still maintained.
4 SECTION 8. That Section 63-3046, Idaho Code, be, and the same is hereby
5 amended to read as follows:
6 63-3046. PENALTIES AND ADDITIONS TO THE TAX IN CASE OF DEFICIENCY. (a) If
7 any part of any deficiency is due to negligence or disregard of rules but
8 without intent to defraud, five percent (5%) of the total amount of the defi-
9 ciency (in addition to such deficiency) shall be assessed, collected and paid
10 in the same manner as if it were a deficiency.
11 (b) If any part of any deficiency is due to fraud with intent to evade
12 tax, then fifty percent (50%) of the total amount of the deficiency (in addi-
13 tion to such deficiency) shall be so assessed, collected and paid.
14 (c) (1) In the event the return required by this chapter is not filed,
15 there may be collected a penalty of five percent (5%) of the tax due on
16 such returns for each month elapsing after the due date (including exten-
17 sions) of such returns until the return is filed. or the penalty amounts
18 to twenty-five percent (25%) of the tax due on such returns.
19 (d2) In the event the return required by this chapter is filed but the
20 tax shown thereon to be due is not paid, there may be collected a penalty
21 of one-half percent (0.5%) of the tax due on such return for each month
22 elapsing after the later of the due date of such return or the date the
23 return was filed until the tax is paid. or the penalty amounts to twenty-
24 five percent (25%) of the tax due on such returns.
25 (ed) (1) If there is a substantial understatement of tax for any taxable
26 year, there shall be added to the tax an amount equal to ten percent (10%)
27 of the amount of any underpayment attributable to such understatement.
28 (2) For purposes of this subsection, there is a substantial understate-
29 ment of tax for any taxable year if the amount of the understatement for
30 the taxable year exceeds the greater of:
31 (i) Ten percent (10%) of the tax required to be shown on the return
32 for the taxable year, or
33 (ii) Five thousand dollars ($5,000).
34 (3) In the case of a corporation, paragraph (ed)(2)(ii) of this section
35 shall be applied by substituting ten thousand dollars ($10,000) for five
36 thousand dollars ($5,000).
37 (4) For purposes of paragraph (ed)(2) of this section, the term
38 "understatement" means the excess of:
39 (i) The amount of tax required to be shown on the return for the
40 taxable year, over
41 (ii) The amount of the tax imposed which is shown on the return.
42 (5) The amount of the understatement under paragraph (4) shall be reduced
43 by that portion of the understatement which is attributable to:
44 (i) The tax treatment of any item by the taxpayer if there is or was
45 substantial authority for such treatment, or
46 (ii) Any item with respect to which the relevant facts affecting the
47 item's tax treatment are adequately disclosed in the return or in a
48 statement attached to the return.
49 (6) In the case of any item attributable to a tax shelter as defined in
50 section 6661 of the Internal Revenue Code:
51 (i) Paragraph (5)(ii) shall not apply, and
52 (ii) Paragraph (5)(i) shall not apply unless (in addition to meeting
53 the requirements of such paragraph) the taxpayer reasonably believed
11
1 that the tax treatment of such item by the taxpayer was more likely
2 than not the proper treatment.
3 (7) The state tax commission may waive all or any part of the addition to
4 tax provided by this section on a showing by the taxpayer that there was
5 reasonable cause for the understatement (or part thereof) and that the
6 taxpayer acted in good faith.
7 (fe) (1) Any person who fails to file a statement of payment to another
8 person required by this chapter, including the duplicate statement of tax
9 withheld on wages, on the date prescribed therefor (including any exten-
10 sion of time for filing) shall, be subject to a penalty of two dollars
11 ($2.00) for each month or part of a month each statement is not so filed,
12 but the total amount imposed on the delinquent person for all such fail-
13 ures during any calendar year shall not exceed two thousand dollars
14 ($2,000).
15 (2) Any employer required to register under the provisions of section
16 63-3035, Idaho Code, who fails to register after receiving written notice
17 from the state tax commission of the requirement to register shall be sub-
18 ject to a penalty of one hundred dollars ($100) for each month or part of
19 a month after the date of the notice during which the failure occurs.
20 (3) The penalties provided in this subsection shall not apply if the per-
21 son shows that the failure to register is due to reasonable cause and not
22 to willful neglect.
23 (4) The state tax commission shall give notice of any penalty provided in
24 this subsection and shall assess the penalties in the manner provided for
25 deficiencies of tax.
26 (gf) If the penalty to be added to the tax by subsection (a), (b),
27 (c)(1), (d), or (e) or (f) of this section or by section 63-3033, Idaho Code,
28 is less than ten dollars ($10.00), the penalty to be added to the tax shall be
29 a minimum of ten dollars ($10.00).
30 (g) Total penalties imposed under subsections (a), (c) and (d) of this
31 section and under section 63-3033, Idaho Code, shall not exceed twenty-five
32 percent (25%) of the tax due on the return.
33 (h) A processing charge to be determined and established annually by the
34 state tax commission shall be collected from any person who draws or delivers
35 a check, draft or order for the payment of money in complete or partial satis-
36 faction of the tax imposed by this chapter if that person does not have suffi-
37 cient funds in or credit with the bank or depository upon which the check,
38 draft or order is drawn. Money collected under this subsection shall be paid
39 to the state tax commission to defer costs of handling such checks, drafts or
40 orders.
41 SECTION 9. An emergency existing therefor, which emergency is hereby
42 declared to exist, Sections 1 through 7 of this act shall be in full force and
43 effect on and after its passage and approval, and retroactively to January 1,
44 2001; and Section 8 of this act shall be in full force and effect on and after
45 its passage and approval.
STATEMENT OF PURPOSE
R.S. 10476C1
This bill makes technical corrections to the Idaho Income Tax
Act.
1. Clarifies the adjustments to taxable income for taxes
paid other states, for net operating losses of trusts and
estates, and for certain lump sum distributions.
2. Correctly names the Department of Environmental
Quality.
3. Strikes redundant language from code section about
Medical Savings Accounts.
4. Clarifies the election of "pass through entities" to
pay tax of certain owners.
5. Corrects a cross-reference to the Internal Revenue
Code.
6. Coordinates the investment tax credit with other
credits.
7. Conforms the limitation on the new jobs credit with the
investment tax credit by increasing the limitations from
forty-five percent (45%) to fifty percent (50%) of tax and
to coordinate the credit with other credits.
8. Removes inconsistencies between various provisions
relating to penalties.
9. Provides effective dates: (1) 1/1/2001 for sections 1
through 7 and on passage and approval for section 10.
FISCAL NOTE
Less than $25,000 reduction to the general fund.
CONTACT
Name: Dan John/Ted Spangler
Agency: State Tax Commission
Phone: 334-7530
HOUSE
STATEMENT OF PURPOSE/FISCAL NOTE H 121