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H0200...............................................by REVENUE AND TAXATION
INCOME TAX - Amends, repeals and adds to existing law to reduce the
individual income tax rates for taxable year 2001 and 2002 and thereafter;
to provide for rebates of 10.6% of the 1999 income tax paid by individuals,
subject to a $25.00 minimum and $25,000 maximum; to increase the grocery
tax credit; to increase the capital gains deduction; to permanently reduce
the corporate income tax rate by 0.2%; to provide five new or expanded
income tax credits for research and development expenditures, creation of
new jobs, providing new venture capital, installing broadband
communications equipment, investing in counties with high unemployment or
low personal income; to change the child care deduction to a credit equal
to one-half the federal credit; and to permanently increase credit for
caring for a dependent over 65 years of age or caring for a person who is
developmentally disabled from $100 to $500.
02/09 House intro - 1st rdg - to printing
02/12 Rpt prt - to Rev/Tax
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 200
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO INCOME TAX RELIEF; AMENDING SECTION 63-3024, IDAHO CODE, TO PRO-
3 VIDE FOR A REDUCTION IN RATES OF ONE-TENTH OF ONE PERCENT FOR TAXABLE YEAR
4 2001 AND TO PROVIDE FOR A REDUCTION IN RATES OF FOUR-TENTHS OF ONE PERCENT
5 FOR TAXABLE YEAR 2002 AND THEREAFTER; AMENDING CHAPTER 30, TITLE 63, IDAHO
6 CODE, BY THE ADDITION OF A NEW SECTION 63-3081, IDAHO CODE, TO PROVIDE A
7 REBATE OF INCOME TAXES PAID BY INDIVIDUALS FOR TAXABLE YEARS BEGINNING IN
8 1999, TO DETERMINE THE RATE OF THE REBATE, TO SET MAXIMUM AND MINIMUM
9 AMOUNTS, TO PROVIDE PROCEDURES, TO APPROPRIATE MONEYS AND TO AUTHORIZE
10 CONTRACTS; REPEALING SECTION 63-3022D, IDAHO CODE; AMENDING SECTION
11 63-3022E, IDAHO CODE, TO INCREASE THE DEDUCTION FOR DEPENDENTS SIXTY-FIVE
12 YEARS OF AGE OR OLDER OR PERSONS WITH DEVELOPMENTAL DISABILITIES FROM ONE
13 THOUSAND DOLLARS TO FIVE THOUSAND DOLLARS; AMENDING SECTION 63-3022H,
14 IDAHO CODE, TO INCREASE THE DEDUCTION ALLOWED FOR QUALIFIED CAPITAL GAINS
15 AND TO ADD CERTAIN INVESTMENTS HELD BY IDAHO PRIVATE VENTURE CAPITAL COM-
16 PANIES FOR A PERIOD OF THREE YEARS TO THE PROPERTY QUALIFYING FOR THE CAP-
17 ITAL GAINS DEDUCTION AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION
18 63-3024A, IDAHO CODE, TO INCREASE THE INCOME TAX CREDIT FOR SALES TAXES
19 PAID BY INDIVIDUALS AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION
20 63-3025, IDAHO CODE, TO REDUCE THE CORPORATE INCOME TAX RATE FROM EIGHT TO
21 SEVEN AND EIGHT-TENTHS PERCENT FOR TAXABLE YEAR 2001 AND TO SEVEN AND
22 FIVE-TENTHS PERCENT FOR TAXABLE YEAR 2002 AND THEREAFTER; AMENDING SECTION
23 63-3025A, IDAHO CODE, TO REDUCE THE CORPORATE FRANCHISE TAX RATE FROM
24 EIGHT PERCENT TO THE RATE OF THE CORPORATE INCOME TAX AND TO MAKE TECHNI-
25 CAL CORRECTIONS; AMENDING SECTION 63-3025D, IDAHO CODE, TO INCREASE THE
26 PAYMENT FOR DEPENDENTS SIXTY-FIVE YEARS OF AGE OR OLDER OR PERSONS WITH
27 DEVELOPMENTAL DISABILITIES FROM ONE HUNDRED DOLLARS TO FIVE HUNDRED DOL-
28 LARS AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 63-3029B, IDAHO
29 CODE, TO PROVIDE THAT TAXPAYERS MAKING EXPENDITURES FOR QUALIFIED
30 BROADBAND EQUIPMENT ARE ENTITLED TO THE CREDIT AND TO REVISE PROCEDURES
31 FOR RECAPTURE; AMENDING SECTIONS 63-3029E AND 63-3029F, IDAHO CODE, TO
32 EXPAND THE NEW JOBS CREDIT BY REMOVING THE LIMITATION OF QUALIFYING TAX-
33 PAYERS TO REVENUE-PRODUCING ENTERPRISE CREATING VALUE-ADDED NATURAL
34 RESOURCE PRODUCTS; AMENDING CHAPTER 30, TITLE 63, IDAHO CODE, BY THE
35 ADDITION OF A NEW SECTION 63-3029G, IDAHO CODE, TO PROVIDE AN INCOME TAX
36 CREDIT FOR CERTAIN EXPENDITURES RELATING TO RESEARCH ACTIVITIES CONDUCTED
37 IN IDAHO, TO PROVIDE A SUNSET, TO PROVIDE A CARRYOVER OF UNUSED CREDITS,
38 TO PROVIDE DEFINITIONS AND TO PROVIDE PROCEDURES; AMENDING SECTION
39 63-3029H, IDAHO CODE, TO REDESIGNATE THE SECTION; AMENDING CHAPTER 30,
40 TITLE 63, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 63-3029H, IDAHO
41 CODE, TO PROVIDE A CREDIT FOR EXPENSES FOR HOUSEHOLD AND DEPENDENT CARE;
42 AMENDING CHAPTER 30, TITLE 63, IDAHO CODE, BY THE ADDITION OF A NEW SEC-
43 TION 63-3029I, IDAHO CODE, TO PROVIDE AN INCOME TAX CREDIT FOR CERTAIN
44 EXPENDITURES RELATING TO HIGH SPEED BROADBAND COMMUNICATIONS ACCESS IN
45 IDAHO, TO PROVIDE A SUNSET, TO PROVIDE A CARRYOVER OF UNUSED CREDITS, TO
46 PROVIDE DEFINITIONS AND TO PROVIDE PROCEDURES; AMENDING CHAPTER 30, TITLE
2
1 63, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 63-3029J, IDAHO CODE, TO
2 PROVIDE AN INCOME TAX CREDIT FOR CERTAIN EXPENDITURES RELATING TO INVEST-
3 MENT IN AREAS IN IDAHO WITH HIGH UNEMPLOYMENT OR LOW PERSONAL INCOME AT
4 THE ELECTION OF THE TAXPAYER, TO PROVIDE A SUNSET, TO PROVIDE A CARRYOVER
5 OF UNUSED CREDITS, TO PROVIDE DEFINITIONS AND TO PROVIDE PROCEDURES;
6 AMENDING CHAPTER 30, TITLE 63, IDAHO CODE, BY THE ADDITION OF A NEW SEC-
7 TION 63-3029K, IDAHO CODE, TO PROVIDE A TEN PERCENT INCOME TAX CREDIT FOR
8 INVESTMENTS IN IDAHO PRIVATE VENTURE CAPITAL COMPANIES, TO PROVIDE A SUN-
9 SET, TO PROVIDE A CARRYOVER OF UNUSED CREDITS, TO PROVIDE DEFINITIONS AND
10 TO PROVIDE PROCEDURES; REPEALING SECTIONS 63-3029E AND 63-3029F, IDAHO
11 CODE; AMENDING CHAPTER 30, TITLE 63, IDAHO CODE, BY THE ADDITION OF A NEW
12 SECTION 63-3029E, IDAHO CODE, TO PROVIDE DEFINITIONS AND CONSTRUCTION OF
13 TERMS; AMENDING CHAPTER 30, TITLE 63, IDAHO CODE, BY THE ADDITION OF A NEW
14 SECTION 63-3029F, IDAHO CODE, TO PROVIDE SPECIAL CREDITS TO THE INCOME TAX
15 FOR NEW EMPLOYEES FOR AN ENTERPRISE THAT PRODUCES, ASSEMBLES, FABRICATES
16 OR PROCESSES NATURAL RESOURCE PRODUCTS; PROVIDING FOR NONSEVERABILITY OF
17 CERTAIN PROVISIONS OF THIS ACT; DECLARING AN EMERGENCY, PROVIDING RETROAC-
18 TIVE APPLICATION FOR CERTAIN PROVISIONS OF THIS ACT AND PROVIDING EFFEC-
19 TIVE DATES.
20 Be It Enacted by the Legislature of the State of Idaho:
21 SECTION 1. That Section 63-3024, Idaho Code, be, and the same is hereby
22 amended to read as follows:
23 63-3024. INDIVIDUALS' TAX AND TAX ON ESTATES AND TRUSTS. For taxable year
24 20001, a tax measured by Idaho taxable income as defined in this chapter is
25 hereby imposed upon every individual, trust, or estate required by this chap-
26 ter to file a return.
27 (a) (i) The tax imposed upon individuals, trusts and estates shall be
28 computed at the following rates:
29 When Idaho taxable income is: The rate is:
30 Less than $1,000 One and nine-tenths percent (1.9%)
31 $1,000 but less than $2,000 $19, plus three and nine-tenths
32 percent (3.9%) of the amount over $1,000
33 $2,000 but less than $3,000 $58, plus four and four-tenths
34 percent (4.4%) of the amount over $2,000
35 $3,000 but less than $4,000 $102, plus five and four-tenths
36 percent (5.4%) of the amount over $3,000
37 $4,000 but less than $5,000 $156, plus six and four-tenths
38 percent (6.4%) of the amount over $4,000
39 $5,000 but less than $7,500 $220, plus seven and four-tenths
40 percent (7.4%) of the amount over $5,000
41 $7,500 but less than $20,000 $405, plus seven and seven-tenths
42 percent (7.7%) of the amount over $7,500
43 Over $20,000 $1,367.50, plus eight and one-tenth
44 percent (8.1%) of the amount over $20,000
45 (ii) For taxable year 20012 and each taxable year thereafter, a tax mea-
46 sured by Idaho taxable income as defined in this chapter is hereby imposed
47 upon every individual, trust, or estate required by this chapter to file a
48 return.
49 The tax imposed upon individuals, trusts and estates shall be computed at the
50 following rates:
51 When Idaho taxable income is: The rate is:
52 Less than $1,000 Two percent (2.0%)
3
1 $1,000 but less than $2,000 $20, plus four percent (4.0%)
2 of the amount over $1,000
3 $2,000 but less than $3,000 $60, plus four and one-half percent
4 (4.5%) of the amount over $2,000
5 $3,000 but less than $4,000 $105, plus five and one-half percent
6 (5.5%) of the amount over $3,000
7 $4,000 but less than $5,000 $160, plus six and one-half percent
8 (6.5%) of the amount over $4,000
9 $5,000 but less than $7,500 $225, plus seven and one-half percent
10 (7.5%) of the amount over $5,000
11 $7,500 but less than $20,000 $412.50, plus seven and eight-tenths percent
12 (7.8%) of the amount over $7,500
13 Over $20,000 $1,387.50, plus eight and two-tenths percent
14 (8.2%) of the amount over $20,000
15 Less than $1,000 One and five-tenths percent (1.5%)
16 $1,000 but less than $2,000 $15, plus three and five-tenths percent
17 (3.5%) of the amount over $1,000
18 $2,000 but less than $3,000 $50, plus four percent
19 (4.0%) of the amount over $2,000
20 $3,000 but less than $4,000 $90, plus five percent
21 (5.0%) of the amount over $3,000
22 $4,000 but less than $5,000 $140, plus six percent
23 (6.0%) of the amount over $4,000
24 $5,000 but less than $7,500 $200, plus seven percent
25 (7.0%) of the amount over $5,000
26 $7,500 but less than $20,000 $375, plus seven and three-tenths percent
27 (7.3%) of the amount over $7,500
28 Over $20,000 $1,287.50, plus seven and seven-tenths percent
29 (7.7%) of the amount over $20,000
30 For taxable year 2000 and each year thereafter, the state tax commission
31 shall prescribe a factor which shall be used to compute the Idaho income tax
32 brackets provided in subsections (a)(i) and (a)(ii) of this section. The fac-
33 tor shall provide an adjustment to the Idaho tax brackets so that inflation
34 will not result in a tax increase. The Idaho tax brackets shall be adjusted as
35 follows: multiply the bracket amounts by the percentage (the consumer price
36 index for the calendar year immediately preceding the calendar year to which
37 the adjusted brackets will apply divided by the consumer price index for cal-
38 endar year 1998). For the purpose of this computation, the consumer price
39 index for any calendar year is the average of the consumer price index as of
40 the close of the twelve (12) month period for the immediately preceding calen-
41 dar year as adopted by the state tax commission. This adoption shall be exempt
42 from the provisions of chapter 52, title 67, Idaho Code. The consumer price
43 index shall mean the consumer price index for all U.S. urban consumers pub-
44 lished by the United States department of labor. The state tax commission
45 shall annually include the factor as provided in this subsection to multiply
46 against Idaho taxable income in the brackets above to arrive at that year's
47 taxable income for tax bracket purposes.
48 (b) In case a joint return is filed by husband and wife pursuant to the
49 provisions of section 63-3031, Idaho Code, the tax imposed by this section
50 shall be twice the tax which would be imposed on one-half (1/2) of the aggre-
51 gate Idaho taxable income. For the purposes of this section, a return of a
52 surviving spouse, as defined in section 2(a) of the Internal Revenue Code, and
53 a head of household, as defined in section 2(b) of the Internal Revenue Code,
54 shall be treated as a joint return and the tax imposed shall be twice the tax
55 which would be imposed on one-half (1/2) of the Idaho taxable income.
4
1 (c) The state tax commission shall compute and publish Idaho income tax
2 liability for taxpayers at the midpoint of each bracket of Idaho taxable
3 income in fifty dollar ($50.00) steps to fifty thousand dollars ($50,000),
4 rounding such calculations to the nearest dollar. Taxpayers having income
5 within such brackets shall file returns based upon and pay taxes according to
6 the schedule thus established. The state tax commission shall promulgate rules
7 defining the conditions upon which such returns shall be filed.
8 SECTION 2. That Chapter 30, Title 63, Idaho Code, be, and the same is
9 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
10 ignated as Section 63-3081, Idaho Code, and to read as follows:
11 63-3081. REBATE OF INCOME TAX. (1) Subject to the limitations of this
12 section, in regard to each individual income tax return required to be filed
13 pursuant to section 63-3030, Idaho Code, and that is actually filed, for a
14 twelve (12) month taxable year beginning in 1999 for which tax is imposed by
15 section 63-3024, Idaho Code, on at least one dollar ($1.00) of Idaho taxable
16 income, the state tax commission shall, on a one-time basis, rebate to the
17 taxpayer named on the return the amount specified in subsection (2) of this
18 section. In the case of a joint return, the rebate shall be paid to both tax-
19 payers jointly.
20 (2) (a) The rebate provided by subsection (1) of this section shall be
21 ten and six-tenths percent (10.6%) of the amount of tax computed under
22 section 63-3024, Idaho Code, reduced by credits provided by:
23 (i) Section 63-3029, Idaho Code, relating to taxes paid to another
24 state;
25 (ii) Sections 63-3029A and 63-3029C, Idaho Code, relating to certain
26 charitable contributions;
27 (iii) Section 63-3029B, Idaho Code, relating to capital investments;
28 (iv) Section 63-3029D, Idaho Code, relating to qualified equipment
29 utilizing postconsumer waste or postindustrial waste.
30 (b) When the amount of a rebate payable under subsection (2)(a) of this
31 section is less than twenty-five dollars ($25.00), the amount of the
32 rebate shall be twenty-five dollars ($25.00). When the amount of a rebate
33 payable under subsection (2)(a) of this section is more than two thousand
34 five hundred dollars ($2,500), the amount of the rebate shall be two thou-
35 sand five hundred dollars ($2,500). In the case of married taxpayers fil-
36 ing separate returns, only one (1) minimum or maximum rebate shall be
37 paid.
38 (3) No rebate shall be paid pursuant to this section in regard to a
39 return described in subsection (1) of this section if the return is not filed
40 within three (3) years of the original due date of the return, without regard
41 to extensions. In the event that the amount of tax due on a return filed
42 within the time required by this subsection is amended by the taxpayer or
43 changed by the state tax commission the rebate provided by this section shall
44 be adjusted proportionally. The state tax commission may offset a rebate
45 against taxes assessed the taxpayer but unpaid.
46 (4) In the case of a short period return, the rebates provided by this
47 section shall be reduced in proportion to the portion of calendar year 1999 to
48 which the return applies.
49 (5) Except as provided in this subsection, no application for a rebate
50 provided in this section shall be required. The state tax commission shall
51 cause each rebate to be mailed to the taxpayer or taxpayers at the address
52 shown on the return, unless, as a result of a more recent return, a newer
53 address is shown on the commission's records. The state tax commission may
5
1 provide a procedure by which rebates that are returned or undeliverable may be
2 claimed.
3 (6) Any person aggrieved by any action of the state tax commission in
4 regard to the rebates provided in this section shall file a petition with the
5 state tax commission in the manner provided in section 63-3045, Idaho Code.
6 Such a petition shall be subject to administrative and judicial review in the
7 manner provided by sections 63-3045 through 63-3049, Idaho Code.
8 (7) Rebates authorized by this section shall be paid from the state
9 refund account established by section 63-3067, Idaho Code, from which the
10 amounts necessary to pay the rebates are hereby appropriated. In the event
11 that, at the time the rebates are paid, there is an insufficient balance in
12 the state refund account, the state board of examiners, upon application by
13 the state tax commission, shall transfer sufficient funds from the general
14 fund to make the rebate payments and any other refunds due and payable from
15 the state refund account.
16 (8) The state tax commission, the state treasurer and the state control-
17 ler may contract with a commercial bank for some or all of the services,
18 including issuing payments, relating to payment of the rebate provided in
19 this section.
20 SECTION 3. That Section 63-3022D, Idaho Code, be, and the same is hereby
21 repealed.
22 SECTION 4. That Section 63-3022E, Idaho Code, be, and the same is hereby
23 amended to read as follows:
24 63-3022E. HOUSEHOLD DEDUCTION FOR DEPENDENTS SIXTY-FIVE YEARS OF AGE OR
25 OLDER OR PERSONS WITH DEVELOPMENTAL DISABILITIES. (1) An additional deduction
26 from taxable income shall be allowed in the case of an individual who main-
27 tains a household, which includes as an immediate member of the family resid-
28 ing in that household, one (1) or more individuals sixty-five (65) years of
29 age or older, or a person with developmental disabilities as defined in sub-
30 section (5) of section 66-402, Idaho Code, regardless of the age of the person
31 when such developmental disability appeared, each of whom receives more than
32 one-half (1/2) of his or her support for the year from the individual who
33 maintains the household. The amount of the deduction shall be one five thou-
34 sand dollars ($15,000) for each individual sixty-five (65) years of age or
35 older or with developmental disabilities.
36 (2) There shall not be allowed more than three (3) deductions of one five
37 thousand dollars ($15,000) under the provisions of this section on any one (1)
38 return.
39 (3) No deductions shall be allowed under this section for the person(s)
40 in whose name(s) the income tax return is filed except as set forth in subsec-
41 tion (4) of this section.
42 (4) A deduction of one five thousand dollars ($15,000) shall be allowed
43 under this section for a person with a developmental disability, as defined in
44 subsection (5) of section 66-402, Idaho Code, who is filing his own return.
45 SECTION 5. That Section 63-3022H, Idaho Code, be, and the same is hereby
46 amended to read as follows:
47 63-3022H. DEDUCTION OF CAPITAL GAINS. (1) If an individual taxpayer
48 reports a net capital gain in determining taxable income, sixty one hundred
49 percent (6100%) of the net capital gain from the sale or exchange of qualified
50 property shall be a deduction in determining taxable income.
6
1 (2) The deduction provided in this section is limited to the amount of
2 the net capital gain from all property included in federal taxable income. Net
3 capital gains treated as ordinary income by the iInternal rRevenue cCode do
4 not qualify for the deduction allowed in this section. The deduction otherwise
5 allowable under this section shall be reduced by the amount of any federal
6 capital gains deduction relating to such property, but not below zero.
7 (3) As used in this section "qualified property" means the following
8 property having an Idaho situs at the time of sale:
9 (a) Real property held at least eighteen (18) months;
10 (b) Tangible personal property used in Idaho for at least twelve (12)
11 months by a revenue-producing enterprise;
12 (c) Cattle or horses held for breeding, draft, dairy or sporting purposes
13 for at least twenty-four (24) months if more than one-half (1/2) of the
14 taxpayer's gross income (as defined in section 61(a) of the iInternal
15 rRevenue cCode) for the taxable year is from farming or ranching opera-
16 tions in Idaho;
17 (d) Breeding livestock other than cattle or horses held at least twelve
18 (12) months if more than one-half (1/2) of the taxpayer's gross income (as
19 defined in section 61(a) of the iInternal rRevenue cCode) for the taxable
20 year is from farming or ranching operations in Idaho;
21 (e) Timber grown in Idaho and held at least twenty-four (24) months;
22 (f) An equity interest held by an Idaho private venture capital company
23 as defined in section 63-3029K, Idaho Code, including stock in a corpora-
24 tion, interest in a partnership or membership in a limited liability com-
25 pany, if:
26 (i) The Idaho private venture capital company or its investors have
27 held the equity interest for at least three (3) years from the date
28 of the original investment; and
29 (ii) The equity interest is issued by a business enterprise that is
30 headquartered and managed in Idaho whose business activity for the
31 entity's three (3) taxable years immediately preceding the sale is
32 entirely in Idaho or at least fifty percent (50%) in Idaho as deter-
33 mined by the average property and payroll factors under section
34 63-3027, Idaho Code.
35 (g) In determining the period for which property subject to this section
36 has been held by a taxpayer, the provisions of section 1223 of the
37 iInternal rRevenue cCode shall apply, except that when the holding period
38 includes any period during which the taxpayer held property other than the
39 property sold, all property held during the holding period must qualify
40 under this section.
41 (4) If an individual reports a capital gain from qualified property from
42 an S corporation or a partnership, a deduction shall be allowed under this
43 section only to the extent the individual held his interest in the income of
44 the S corporation or the partnership for the time required by subsection (3)
45 of this section for the property sold.
46 (5) If an individual reports a capital gain from an estate, no deduction
47 shall be allowed under this section unless the holding period required in sub-
48 section (3) of this section was satisfied by the decedent, the estate, or the
49 beneficiary, or a combination thereof.
50 (6) If an individual reports a capital gain from a trust, no deduction
51 shall be allowed under this section unless the holding period required in sub-
52 section (3) of this section was satisfied by the grantor, the trust, or the
53 beneficiary, or a combination thereof.
54 (7) As used in this section "revenue-producing enterprise" means:
55 (a) The production, assembly, fabrication, manufacture, or processing of
7
1 any agricultural, mineral or manufactured product;
2 (b) The storage, warehousing, distribution, or sale at wholesale of any
3 products of agriculture, mining or manufacturing;
4 (c) The feeding of livestock at a feedlot;
5 (d) The operation of laboratories or other facilities for scientific,
6 agricultural, animal husbandry, or industrial research, development, or
7 testing.
8 SECTION 6. That Section 63-3024A, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 63-3024A. CREDITS AND REFUNDS. (a) Any resident individual not entitled
11 to the credit allowed in subsection (b)(1), who is required to file by law and
12 who has filed an Idaho income tax return, shall be allowed a credit against
13 taxes due under the Idaho income tax act equal to the amount of fifteen thirty
14 dollars ($1530.00) for each personal exemption for which a deduction is per-
15 mitted by section 151(b) and (c) of the Internal Revenue Code if such deduc-
16 tion is claimed on the taxpayer's Idaho income tax return, and if the individ-
17 ual for whom the deduction is claimed is a resident of the state of Idaho. If
18 taxes due are less than the total credit allowed, the taxpayer shall be paid a
19 refund equal to the balance of the unused credit. If the credit or refund is
20 not claimed for the year for which the individual income tax return is filed,
21 the right thereafter to claim such credit or refund shall be forfeited. The
22 state tax commission shall prescribe the method by which the refund, if any,
23 is to be made to the taxpayer.
24 (b) (1) A resident individual who has reached his sixty-fifth birthday
25 before the end of his taxable year, who is required to file by law and who
26 has filed an Idaho income tax return, shall be allowed a credit against
27 taxes due under the Idaho income tax act equal to the amount of thirty
28 sixty dollars ($360.00) for each personal exemption representing himself,
29 a spouse over the age of sixty-five (65) years, or a dependent over the
30 age of sixty-five (65) years, but shall be allowed a credit against taxes
31 due under the Idaho income tax act equal to fifteen thirty dollars
32 ($1530.00) for each personal exemption representing a spouse or dependent
33 under the age of sixty-five (65) years. If taxes due are less than the
34 total credit allowed, the taxpayer shall be paid a refund equal to the
35 balance of the unused credit. If the credit or refund is not claimed for
36 the year for which the individual income tax return is filed, the right
37 thereafter to claim such credit or refund shall be forfeited. The state
38 tax commission shall prescribe the method by which the refund, if any, is
39 to be made to the taxpayer.
40 (2) A resident individual who has reached his sixty-fifth birthday and is
41 not required by law to file an Idaho income tax return and who has
42 received no credit or refund under any other subsection of this section,
43 shall be entitled to a refund of thirty sixty dollars ($360.00). Any
44 refund shall be paid to such individual only upon his making application
45 therefor at such time and in such manner as may be prescribed by the state
46 tax commission.
47 (c) A resident individual of the state of Idaho who is:
48 (i) blind, or
49 (ii) a disabled American veteran of any war engaged in by the United
50 States, whose disability is recognized as a service connected disability
51 of a degree of ten per cent percent (10%) or more, or who is in receipt of
52 a pension for nonservice connected disabilities, in accordance with laws
53 and regulations administered by the United States veterans administration,
8
1 substantiated by a statement as to status signed by a responsible officer
2 of the United States veterans administration, or
3 (iii) over sixty-two (62) years of age, and has been allowed none, or less
4 than all, of the credit provided by subsection (a) or subsection (b) of
5 this section, shall be entitled to a payment from the refund fund in an
6 amount equal to fifteen thirty dollars ($1530.00), or the balance of his
7 unused credit, whichever is less, upon making application therefor at such
8 time and in such manner as the state tax commission may prescribe.
9 (d) Any part-year resident entitled to a credit under this section shall
10 receive a proportionate credit, in the manner above provided, reflecting the
11 part of the year in which he was domiciled in this state.
12 (e) No credit or refund may be claimed for an exemption which represents
13 a person who has himself filed an Idaho income tax return claiming a deduction
14 for his own personal exemption, and in no event shall more than one (1) tax-
15 payer be allowed a credit or refund for the same exemption, or under more than
16 one (1) subsection of this section.
17 (f) The refunds authorized by this section shall be paid from the state
18 refund fund in the same manner as the refunds authorized by section 63-3067,
19 Idaho Code.
20 (g) An application for any refund which is due and payable under the pro-
21 visions of this section must be filed with the state tax commission within
22 three (3) years of:
23 (i) the due date, including extensions, of the return required under sec-
24 tion 63-3030, Idaho Code, if the applicant is required to file a return,
25 or
26 (ii) the 15th day of April of the year following the year to which the
27 application relates if the applicant is not required to file a return.
28 SECTION 7. That Section 63-3025, Idaho Code, be, and the same is hereby
29 amended to read as follows:
30 63-3025. TAX ON CORPORATE INCOME. For taxable years commencing on and
31 after January 1, 1987 2001, a tax is hereby imposed on the Idaho taxable
32 income of a corporation which transacts or is authorized to transact business
33 in this state or which has income attributable to this state. The tax shall be
34 equal to eight seven and eight-tenths percent (7.8%) of Idaho taxable income
35 for taxable year 2001 and seven and five-tenths percent (7.5%) of Idaho tax-
36 able income for taxable year 2002 and thereafter; provided, however, that the
37 tax shall not be less than twenty dollars ($20.00); provided further that the
38 twenty dollar ($20.00) minimum payment shall not be collected from nonproduc-
39 tive mining corporations. The tax imposed by this section shall not apply to
40 corporations taxed pursuant to the provisions of section 63-3025A, Idaho Code.
41 SECTION 8. That Section 63-3025A, Idaho Code, be, and the same is hereby
42 amended to read as follows:
43 63-3025A. FRANCHISE TAX. For taxable years commencing on and after Janu-
44 ary 1, 1987 2001, a franchise tax shall be imposed upon any corporation for
45 the privilege of exercising its corporate franchise within the state during
46 such taxable year, including, but not limited to, corporations engaged in
47 business in Idaho for the exclusive purpose of performing contracts with the
48 United States department of energy at the Idaho national engineering and envi-
49 ronmental laboratory, which tax shall be measured by income which is attribut-
50 able to this state under the provisions of this chapter and which tax shall be
51 equal to eight percent (8%) of Idaho taxable income at the rate provided in
9
1 section 63-3025, Idaho Code; provided, however, that the tax shall not be less
2 than twenty dollars ($20.00); provided further that the twenty dollar ($20.00)
3 minimum payment shall not be collected from nonproductive mining corporations;
4 but the twenty dollar ($20.00) minimum tax shall apply to corporations quali-
5 fied to file returns and actually filing returns under the provisions of sub-
6 chapter "S" of the Internal Revenue Code.
7 SECTION 9. That Section 63-3025D, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 63-3025D. PAYMENT FOR DEPENDENTS SIXTY-FIVE YEARS OF AGE OR OLDER OR PER-
10 SONS WITH DEVELOPMENTAL DISABILITIES. (1) In lieu of the deduction from tax-
11 able income allowed by section 63-3022E, Idaho Code, a resident individual who
12 maintains a household, which includes as an immediate member of the family
13 residing in that household, one (1) or more individuals sixty-five (65) years
14 of age or older or individuals with developmental disabilities, as defined in
15 subsection (5) of section 66-402, Idaho Code, each of whom receives more than
16 one-half (1/2) of his or her support for the year from the individual who
17 maintains the household, shall be entitled to a payment from the refund
18 account of one five hundred dollars ($1500) for each such elderly member of
19 the family or family member with a developmental disability. Any such payment
20 shall be paid to such individual only upon his making application therefor at
21 such time and in such manner as may be prescribed by the state tax commission.
22 (2) No more than three (3) such payments shall be made under the provi-
23 sions of this section to any one (1) individual in any calendar year.
24 (3) No payment may be claimed under the provisions of this section by the
25 individual himself except as set forth in subsection (4) of this section.
26 (4) A credit of one five hundred dollars ($1500) shall be allowed under
27 this section for a person with a developmental disability as defined in sub-
28 section (5) of section 66-402, Idaho Code, who is filing his own tax return.
29 SECTION 10. That Section 63-3029B, Idaho Code, be, and the same is hereby
30 amended to read as follows:
31 63-3029B. INCOME TAX CREDIT FOR CAPITAL INVESTMENT. (1) At the election
32 of the taxpayer there shall be allowed, subject to the applicable limitations
33 provided herein as a credit against the income tax imposed by chapter 30,
34 title 63, Idaho Code, an amount equal to the sum of:
35 (a) The tax credit carryovers; and
36 (b) The tax credit for the taxable year.
37 (2) The maximum allowable amount of the credit for the current taxable
38 year shall be three percent (3%) of the amount of qualified investments made
39 during the taxable year.
40 (3) As used in this section "qualified investment" means certain depre-
41 ciable property which:
42 (a) (i) Is eligible for the federal investment tax credit, as defined in
43 sections 46(c) and 48 of the Internal Revenue Code subject to the
44 limitations provided for certain regulated companies in section 46(f)
45 of the Internal Revenue Code and is not a motor vehicle under eight
46 thousand (8,000) pounds gross weight; or
47 (ii) Is qualified broadband equipment as defined in section 63-3029I,
48 Idaho Code; and
49 (b) Is acquired, constructed, reconstructed, erected or placed into ser-
50 vice after December 31, 1981; and
51 (c) Has a situs in Idaho.
10
1 (4) Notwithstanding the provisions of subsections (1) and (2) of this
2 section, the amount of the credit allowed shall not exceed fifty percent (50%)
3 of the tax liability of the taxpayer.
4 (5) If the sum of credit carryovers from the credit allowed by subsection
5 (2) of this section and the amount of credit for the taxable year from the
6 credit allowed by subsection (2) of this section exceed the limitation imposed
7 by subsection (4) of this section for the current taxable year, the excess
8 attributable to the current taxable year's credit shall be an investment
9 credit carryover to the fourteen (14) succeeding taxable years. In the case of
10 a group of corporations filing a combined report under section 63-3027, Idaho
11 Code, or sections 63-3027B through 63-3027E, Idaho Code, credit earned by one
12 (1) member of the group but not used by that member may be used by another
13 member of the group, subject to the provisions of subsection (4) of this sec-
14 tion, instead of carried over. The entire amount of unused credit shall be
15 carried forward to the earliest of the succeeding years, wherein the oldest
16 available unused credit shall be used first, so long as the qualified invest-
17 ment property for which the unused credit was granted still maintains Idaho
18 situs. For a combined group of corporations, credit carried forward may be
19 claimed by any member of the group unless the member who earned the credit is
20 no longer included in the combined group.
21 (6) Any recapture of the credit allowed by subsection (2) of this section
22 on property disposed of or ceasing to qualify, prior to the close of its use-
23 ful life the recapture period, shall be determined according to the applicable
24 recapture provisions of the Internal Revenue Code. In the case of a unitary
25 group of corporations, the increase in tax due to the recapture of investment
26 tax credit must be reported by the member of the group who earned the credit
27 regardless of which member claimed the credit against tax.
28 (7) For the purpose of determining whether property placed in service is
29 a "qualified investment" as defined in subsection (3) of this section, the
30 provisions of section 49 of the Internal Revenue Code shall be disregarded.
31 (8) For purposes of this section, property has a situs in Idaho during a
32 taxable year if it is used in Idaho at any time during the taxable year. Prop-
33 erty not used in Idaho during a taxable year does not have a situs in Idaho in
34 the taxable year during which the property is not used in Idaho or in any sub-
35 sequent taxable year. No credit or carryover of credit is permitted under this
36 section if the credit or carryover relates to property that does not have a
37 situs in Idaho during the taxable year for which the credit or carryover is
38 claimed. The Idaho situs of property must be established by records maintained
39 by the taxpayer which are created reasonably contemporaneously with the use of
40 the property.
41 (9) In the case of property used both in and outside Idaho, the taxpayer,
42 electing to claim the credit provided in this section, must elect to compute
43 the qualified investment in property with a situs in Idaho for all such
44 investments first qualifying during that year in one (1), but only one (1), of
45 the following ways:
46 (a) The amount of each qualified investment in a specific asset shall be
47 separately computed based on the percentage of the actual use of the prop-
48 erty in Idaho by using a measure of the use, such as total miles or total
49 machine hours, that most accurately reflects the beneficial use during the
50 taxable year in which it is first acquired, constructed, reconstructed,
51 erected or placed into service; provided, that the asset is placed in ser-
52 vice more than ninety (90) days before the end of the taxable year. In the
53 case of assets acquired, constructed, reconstructed, erected or placed
54 into service within ninety (90) days prior to the end of the taxable year
55 in which the investment first qualifies, the measure of the use of that
11
1 asset within Idaho for that year shall be based upon the percentage of use
2 in Idaho during the first ninety (90) days of use of the asset;
3 (b) The investment in qualified property used both inside and outside
4 Idaho during the taxable year in which it is first acquired, constructed,
5 reconstructed, erected or placed into service shall be multiplied by the
6 percent of the investment that would be included in the numerator of the
7 Idaho property factor determined pursuant to section 63-3027, Idaho Code,
8 for the same year.
9 (10) Only for the purposes of subsections (3)(a) and (7) of this section,
10 references to sections of the "Internal Revenue Code" mean the sections
11 referred to as they existed in the Internal Revenue Code of 1986 prior to
12 November 5, 1990.
13 SECTION 11. That Section 63-3029E, Idaho Code, be, and the same is hereby
14 amended to read as follows:
15 63-3029E. DEFINITIONS -- CONSTRUCTION OF TERMS. As used in this section
16 and in section 63-3029F, Idaho Code:
17 (1) (a) "New employee" means a person from whom Idaho income tax has been
18 withheld, employed by the taxpayer, in a revenue-producing enterprise cre-
19 ating value-added natural resource products, and covered for unemployment
20 insurance purposes under chapter 13, title 72, Idaho Code, during the tax-
21 able year for which the credit allowed by section 63-3029F, Idaho Code, is
22 claimed. A person shall be deemed to be so engaged if such person performs
23 duties on:
24 (i) A regular full-time basis; or
25 (ii) A part-time basis if such person is customarily performing such
26 duties at least twenty (20) hours per week.
27 No credit shall be earned unless the new employee shall have performed
28 such duties for the taxpayer for a minimum of nine (9) months during the
29 taxable year for which the credit is claimed.
30 (b) The provisions of paragraph (a) of this subsection notwithstanding,
31 no credit shall be allowed for employment of persons by a taxpayer who
32 acquires a revenue-producing enterprise from another taxpayer or who oper-
33 ates in a place of business the same or a substantially identical revenue-
34 producing value-added natural resource products enterprise business as
35 operated by another taxpayer within the prior twelve (12) months, except
36 as the prior taxpayer would have qualified under the provisions of para-
37 graph (c) of this subsection. Employees transferred from a related tax-
38 payer shall not be included in the computation of the credit.
39 (c) The number of employees during any taxable year for any taxpayer
40 shall be the mathematical average of the number of employees reported to
41 the Idaho department of labor for employment security purposes during the
42 twelve (12) months of the taxable year which qualified under paragraph (a)
43 of this subsection. In the event the business is in operation for less
44 than the entire taxable year, the number of employees of the business for
45 the year shall be the average number actually employed during the months
46 of operation, providing that the qualifications of paragraph (a) of this
47 subsection are met.
48 (2) "Revenue-producing enterprise" means the production, assembly, fabri-
49 cation, manufacture or processing of any natural resource product.
50 (3) "Same or a substantially identical revenue-producing enterprise busi-
51 ness" means a revenue-producing enterprise business in which the products pro-
52 duced or sold, or the activities conducted are the same in character and use
53 and are produced, sold or conducted in the same manner as, or for the same
12
1 types of customers as, the products or activities produced, sold or conducted
2 in another revenue-producing enterprise business.
3 SECTION 12. That Section 63-3029F, Idaho Code, be, and the same is hereby
4 amended to read as follows:
5 63-3029F. SPECIAL CREDIT AVAILABLE -- NEW EMPLOYEES. (1) Any taxpayer
6 shall be allowed a credit, in an amount determined under subsection (2) of
7 this section, against the tax imposed by this chapter, other than the tax
8 imposed by section 63-3082, Idaho Code, for any taxable year during which the
9 taxpayer's employment of new employees, as defined under section 63-3029E(1),
10 Idaho Code, increases above the taxpayer's average employment for either: (a)
11 the prior taxable year, or (b) the average of three (3) prior taxable years,
12 whichever is higher. No credit shall be allowed under this section unless the
13 number of new employees equals or exceeds one (1) person.
14 (2) The credit authorized in subsection (1) of this section shall be five
15 hundred dollars ($500) per new employee, but the total credit allowed shall
16 not exceed three and one-quarter percent (3.25%) of net income from the
17 taxpayer's corporate, proprietorship, partnership, small business corporation
18 or limited liability company revenue-producing enterprise business in which
19 the employment occurred. Additionally, the total of this and all other credits
20 allowed under this chapter except for the credits allowed under sections
21 63-3024A, 63-3025D and 63-3029, Idaho Code, taken during any taxable year
22 shall not exceed forty-five percent (45%) of the tax otherwise imposed on the
23 taxpayer for the taxable year for which such credit is allowed.
24 (3) If the sum of the credit carryovers from the credit allowed by sub-
25 section (2) of this section and the amount of credit for the taxable year from
26 the credit allowed by subsection (2) of this section exceed the limitation
27 imposed by subsection (2) of this section for the current taxable year, the
28 excess attributable to the current taxable year's credit shall be a credit
29 carryover to the three (3) succeeding taxable years. The entire amount of
30 unused credit shall be carried forward to the earliest of the succeeding
31 years, wherein the oldest available unused credit shall be used first, so long
32 as the employment level for which the credit was granted is still maintained.
33 SECTION 13. That Chapter 30, Title 63, Idaho Code, be, and the same is
34 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
35 ignated as Section 63-3029G, Idaho Code, and to read as follows:
36 63-3029G. CREDITS FOR RESEARCH ACTIVITIES CONDUCTED IN THIS STATE --
37 CARRY FORWARD.
38 (1) (a) Subject to the limitations of this section, for taxable years
39 beginning between January 1, 2001, and December 31, 2005, inclusive, there
40 shall be allowed to a taxpayer a nonrefundable credit against taxes
41 imposed by sections 63-3024, 63-3025 and 63-3025A, Idaho Code, for
42 increasing research activities in Idaho during any consecutive five (5)
43 year period beginning, at the election of the taxpayer, either:
44 (i) January 1, 2001, or
45 (ii) The first day of the taxpayer's taxable year beginning in 2001.
46 (b) The credit allowed by subsection (1)(a) of this section shall be the
47 sum of:
48 (i) Five percent (5%) of the excess of qualified research payments
49 for research conducted in Idaho over the base amount; and
50 (ii) Five percent (5%) basic research payments allowable under sub-
51 section (e) of section 41 of the Internal Revenue Code for basic
13
1 research conducted in Idaho.
2 (c) Subject to the limitation in subsection (3) of this section, a tax-
3 payer making the election permitted by subsection (1)(a)(i) of this sec-
4 tion, credit for research activities occurring prior to the beginning of
5 the taxpayer's taxable year beginning in 2001 shall be claimed on the
6 taxpayer's return for its taxable year 2001 in addition to credit relating
7 to activity in that year.
8 (2) As used in this section:
9 (a) The terms "qualified research payments," "qualified research," "basic
10 research payments" and "basic research" shall be as defined in section 41
11 of the Internal Revenue Code except that the research must be conducted in
12 Idaho.
13 (b) The term "base amount" shall mean an amount calculated as provided in
14 sections 41(c) and 41(h) of the Internal Revenue Code, except that:
15 (i) The base amount does not include the calculation of the alter-
16 native incremental credit provided for in section 41(c)(4) of the
17 Internal Revenue Code;
18 (ii) A taxpayer's gross receipts include only those gross receipts
19 attributable to sources within this state as provided in subsections
20 (q) and (r) of section 63-3027, Idaho Code; and
21 (iii) Notwithstanding section 41(c) of the Internal Revenue Code, for
22 purposes of calculating the base amount, a taxpayer:
23 (A) May elect to be treated as a start-up company as provided
24 in section 41(c)(3)(B) of the Internal Revenue Code, regardless
25 of whether the taxpayer meets the requirements of section
26 41(c)(3)(B)(i)(I) or (II) of the Internal Revenue Code; and
27 (B) May not revoke an election to be treated as a start-up com-
28 pany.
29 (3) The credit allowed by subsection (1)(a) of this section together with
30 any credits carried forward under subsection (5) of this section shall not
31 exceed the amount of tax due under sections 63-3024, 63-3025 and 63-3025A,
32 Idaho Code, after allowance for all other credits permitted by this chapter.
33 When credits earned in more than one (1) taxable year are available, the old-
34 est credits shall be applied first.
35 (4) In the case of a group of corporations filing a combined report under
36 subsection (t) of section 63-3027, Idaho Code, credit earned by one (1) member
37 of the group but not used by that member may be used by another member of the
38 group. For a combined group of corporations, any member of the group may claim
39 credit carried forward unless the member who earned the credit is no longer
40 included in the combined group.
41 (5) The credit allowed by subsection (1)(a) of this section shall be
42 claimed for the taxable year during which the taxpayer qualifies for the
43 credit. If the credit exceeds the limitation under subsection (3) of this sec-
44 tion, the excess amount may be carried forward for a period that does not
45 exceed the next fourteen (14) taxable years.
46 (6) In addition to other needed rules, the state tax commission may pro-
47 mulgate rules prescribing, in the case of S corporations, partnerships, trusts
48 or estates, a method of attributing the credit under this section to the
49 shareholders, partners or beneficiaries in proportion to their share of the
50 income from the S corporation, partnership, trust or estate.
51 SECTION 14. That Section 63-3029H, Idaho Code, be, and the same is hereby
52 amended to read as follows:
53 63-3029HP. PRIORITY OF CREDITS. When a taxpayer subject to any taxes
14
1 imposed under this chapter is entitled to two (2) or more credits against such
2 taxes, the priority of credits shall be determined in the following order:
3 (a) Nonrefundable credits. Nonrefundable credits shall be applied to the
4 tax liability before application of refundable credits. If a taxpayer is enti-
5 tled to more than one (1) nonrefundable credit, the credits shall be applied
6 in the order in which the statutes authorizing the credits were enacted by the
7 legislature.
8 (b) Refundable credits. Refundable credits shall be applied to the tax
9 liability after application of any nonrefundable credits.
10 SECTION 15. 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 63-3029H, Idaho Code, and to read as follows:
13 63-3029H. CREDIT FOR HOUSEHOLD AND DEPENDENT CARE SERVICES NECESSARY FOR
14 GAINFUL EMPLOYMENT. (1) A resident individual who is entitled, for federal
15 income tax purposes, to claim and who does claim the credit provided by sec-
16 tion 21 of the Internal Revenue Code shall be entitled to a nonrefundable
17 credit against taxes imposed by section 63-3024, Idaho Code, equal to one-half
18 (1/2) of the credit allowable on that taxpayer's federal return for the same
19 taxable year.
20 (2) A nonresident or part-year resident individual who is entitled, for
21 federal income tax purposes, to claim and who does claim the credit provided
22 by section 21 of the Internal Revenue Code shall be entitled to a proportional
23 part of the credit otherwise provided in subsection (1) of this section. The
24 proportion shall be determined in accordance with the provisions of section
25 63-3026A(6), Idaho Code.
26 (3) The credit allowed by this section shall not exceed the total amount
27 of taxes due under section 63-3024, Idaho Code, after allowance of all other
28 credits provided in this chapter.
29 SECTION 16. That Chapter 30, Title 63, Idaho Code, be, and the same is
30 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
31 ignated as Section 63-3029I, Idaho Code, and to read as follows:
32 63-3029I. INCOME TAX CREDIT FOR INVESTMENT IN BROADBAND EQUIPMENT. (1)
33 Subject to the limitations of this section, for taxable years beginning
34 between January 1, 2001, and December 31, 2005, inclusive, there shall be
35 allowed to a taxpayer a nonrefundable credit against taxes imposed by sections
36 63-3024, 63-3025 and 63-3025A, Idaho Code, for qualified expenditures in qual-
37 ified broadband equipment in Idaho.
38 (2) The credit permitted in subsection (1) of this section shall be three
39 percent (3%) of the qualified investment in qualified broadband equipment in
40 Idaho and shall be in addition to the credit for capital investment permitted
41 by section 63-3029B, Idaho Code.
42 (3) As used in this section the term:
43 (a) "Qualified investment" shall be as defined in section 63-3029B, Idaho
44 Code.
45 (b) "Qualified broadband equipment" means equipment that qualifies for
46 the credit for capital investment permitted by section 63-3029B, Idaho
47 Code, and is capable of transmitting signals at a rate of at least two
48 hundred thousand (200,000) bits per second to a subscriber and at least
49 one hundred twenty-five thousand (125,000) bits per second from a sub-
50 scriber, and
51 (i) In the case of a telecommunications carrier, such qualifying
15
1 equipment shall be necessary to the provision of broadband service
2 and an integral part of a broadband network. "Telecommunications car-
3 rier" has the meaning given such term by section 3(44) of the commu-
4 nications act of 1934, as amended, but does not include a commercial
5 mobile service provider.
6 (ii) In the case of a commercial mobile service carrier, such quali-
7 fying equipment shall extend from the subscriber side of the mobile
8 telecommunications switching office to a transmitting/receiving
9 antenna, including such antenna, on the outside of the structure in
10 which the subscriber is located. "Commercial mobile service carrier"
11 means any person authorized to provide commercial mobile radio ser-
12 vice to subscribers as defined in section 20.3 of title 47, Code of
13 Federal Regulations (10-1-99 ed.), as amended.
14 (iii) In the case of a cable or open video system operator, such
15 qualifying equipment shall extend from the subscriber's side of the
16 headend to the outside of the structure in which the subscriber is
17 located. The terms "cable operator" and "open video system operator"
18 have the meanings given such terms by sections 602(5) and 653,
19 respectively, of the communications act of 1934, as amended.
20 (iv) In the case of a satellite carrier or a wireless carrier other
21 than listed above, such qualifying equipment is only that equipment
22 that extends from a transmitting/receiving antenna, including such
23 antenna, which transmits and receives signals to or from multiple
24 subscribers to a transmitting/receiving antenna on the outside of the
25 structure in which the subscriber is located. "Satellite carrier"
26 means any person using the facilities of a satellite or satellite
27 services licensed by the federal communications commission and oper-
28 ating a fixed-satellite service or direct broadcast satellite ser-
29 vices to provide point-to-multipoint distribution of signals. "Other
30 wireless carrier" means any person, other than a telecommunications
31 carrier, commercial mobile service carrier, cable operator, open
32 video operator, or satellite carrier, providing broadband services to
33 subscribers through the radio transmission of energy.
34 (v) In the case of packet switching equipment, such packet equip-
35 ment installed in connection with other qualifying equipment listed
36 in subsections (2)(b)(i) through (2)(b)(iv) of this section, provided
37 it is the last in a series of equipment that transmits signals to a
38 subscriber or the first in a series of equipment that transmits sig-
39 nals from a subscriber. "Packet switching" means controlling or
40 routing the path of a digital transmission signal which is assembled
41 into packets or cells.
42 (vi) In the case of multiplexing and demultiplexing equipment, such
43 equipment only to the extent that it is deployed in connection with
44 providing broadband services in locations between packet switching
45 equipment and the structure in which the subscriber is located.
46 "Multiplexing" means the transmission of two (2) or more signals over
47 a communications circuit without regard to the communications tech-
48 nology.
49 (vii) Any property not primarily used to provide services in Idaho to
50 public subscribers is not qualified broadband equipment.
51 (3) No equipment described in subsections (2)(b)(i) through (2)(b)(vi) of
52 this section shall qualify for the credit provided in subsection (1) of this
53 section until the taxpayer applies to and obtains from the Idaho public utili-
54 ties commission an order confirming that the installed equipment is qualified
55 broadband equipment. Applications submitted to the commission shall be gov-
16
1 erned by the commission's rules of procedure. The commission may issue proce-
2 dural orders necessary to implement this section.
3 (4) The credit allowed by subsection (1) of this section together with
4 any credits carried forward under subsection (6) of this section shall not, in
5 any one (1) taxable year, exceed the lesser of:
6 (a) The amount of tax due under sections 63-3024, 63-3025 and 63-3025A,
7 Idaho Code, after allowance for all other credits permitted by this chap-
8 ter; or
9 (b) Seven hundred fifty thousand dollars ($750,000).
10 When credits earned in more than one (1) taxable year are available, the old-
11 est credits shall be applied first.
12 (5) In the case of a group of corporations filing a combined report under
13 subsection (t) of section 63-3027, Idaho Code, credit earned by one (1) member
14 of the group but not used by that member may be used by another member of the
15 group, subject to the provisions of subsection (6) of this section, instead of
16 carried over. For a combined group of corporations, credit carried forward may
17 be claimed by any member of the group unless the member who earned the credit
18 is no longer included in the combined group.
19 (6) If the credit allowed by subsection (1) of this section exceeds the
20 limitation under subsection (4) of this section, the excess amount may be car-
21 ried forward for a period that does not exceed the next fourteen (14) taxable
22 years.
23 (7) In the event that qualified broadband equipment upon which the credit
24 allowed by this section has been used ceases to qualify for the credit allowed
25 by section 63-3029B, Idaho Code, or is subject to recapture of that credit,
26 the recapture of credit under this section shall be in the same proportion and
27 subject to the same provisions as the amount of credit required to be recap-
28 tured under section 63-3029B, Idaho Code.
29 (8) (a) Subject to the requirements of this subsection, a taxpayer enti-
30 tled to the credit or to an unused portion of the credit allowed by this
31 section may transfer the unused credit to another taxpayer required to
32 file a return under this chapter.
33 (b) Before completing a transfer under this subsection, the transferor
34 shall notify the state tax commission of its intention to transfer the
35 credit and the identity of the transferee. The state tax commission shall
36 provide the transferor with a written statement of the amount of credit
37 available under this section as then appearing in the commission's records
38 and the number of years the credit may be carried over. The transferee
39 shall attach a copy of the statement to any return in regard to which the
40 transferred credit is claimed.
41 (c) In the event that after the transfer the state tax commission deter-
42 mines that the amount of credit properly available under this section is
43 less than the amount claimed by the transferor of the credit or that the
44 credit is subject to recapture, the commission shall assess the amount of
45 overstated or recaptured credit as taxes due from the transferor and not
46 the transferee. The assessment shall be made in the manner provided for a
47 deficiency in taxes under this chapter.
48 (9) In addition to other needed rules, the state tax commission may pro-
49 mulgate rules prescribing, in the case of S corporations, partnerships, trusts
50 or estates, a method of attributing the credit under this section to the
51 shareholders, partners or beneficiaries in proportion to their share of the
52 income from the S corporation, partnership, trust or estate.
53 SECTION 17. That Chapter 30, Title 63, Idaho Code, be, and the same is
54 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
17
1 ignated as Section 63-3029J, Idaho Code, and to read as follows:
2 63-3029J. INCENTIVE INCOME TAX INVESTMENT CREDIT. (1) Subject to the lim-
3 itations of this section, for taxable years beginning between January 1, 2001,
4 and December 31, 2005, inclusive, there shall be allowed to a taxpayer a non-
5 refundable credit against taxes imposed by sections 63-3024, 63-3025 and
6 63-3025A, Idaho Code, in the amount allowed by subsection (2) of this section
7 for qualified investments in Idaho. The credit shall be in addition to the
8 credit for capital investment permitted by section 63-3029B, Idaho Code.
9 (2) The credit permitted in subsection (1) of this section shall be at
10 the percentage rate determined under either subsection (2)(a) or (2)(b) of
11 this section at the election of the taxpayer.
12 (a) (i) One-half (1/2) of the amount by which the average three-year
13 unemployment rate in the county in which the property is located
14 exceeds six percent (6%). In the case of mobile property, the prop-
15 erty shall be located in the county in which it is primarily based.
16 (ii) For purposes of this section the director of the department of
17 labor shall, on or before the first day of September of each calendar
18 year, establish and certify to the state tax commission the average
19 three-year unemployment rate in each county in Idaho for the immedi-
20 ately preceding three (3) calendar years. The rates thus certified
21 shall apply to the calculation of the credit under subsection
22 (2)(a)(i) of this section for property qualifying in the taxable year
23 beginning during the next calendar year.
24 (b) (i) One-tenth of one percent (.1%) for each full percent that the
25 three-year average per capita personal income level in the county in
26 which the property is located is below ninety percent (90%) of the
27 average statewide per capita personal income level.
28 (ii) For purposes of this section the director of the department of
29 commerce shall, on or before the first day of September of each cal-
30 endar year, establish and certify to the state tax commission the
31 most current three-year average per capita personal income level in
32 each county in Idaho and the statewide per capita personal income
33 level for the most current preceding three (3) calendar years. The
34 levels thus certified shall apply to the calculation of the credit
35 under subsection (2)(b)(i) of this section for property qualifying in
36 the taxable year beginning during the next calendar year.
37 (3) As used in this section the term "qualified investment" shall be
38 defined as in section 63-3029B, Idaho Code.
39 (4) The credit allowed by subsection (1) of this section together with
40 any credits carried forward under subsection (6) of this section shall not
41 exceed in any one (1) taxable year the lesser of:
42 (a) The amount of tax due under sections 63-3024, 63-3025 and 63-3025A,
43 Idaho Code, after allowance for all other credits permitted by this chap-
44 ter; or
45 (b) Five hundred thousand dollars ($500,000).
46 (c) When credits earned in more than one (1) taxable year are available,
47 the oldest credits shall be applied first.
48 (5) In the case of a group of corporations filing a combined report under
49 subsection (t) of section 63-3027, Idaho Code, credit earned by one (1) member
50 of the group but not used by that member may be used by another member of the
51 group, subject to the provisions of subsection (6) of this section, instead of
52 carried over. For a combined group of corporations, credit carried forward may
53 be claimed by any member of the group unless the member who earned the credit
54 is no longer included in the combined group.
18
1 (6) If the credit allowed by subsection (1) of this section exceeds the
2 limitation under subsection (4) of this section, the excess amount may be car-
3 ried forward for a period that does not exceed the next fourteen (14) taxable
4 years.
5 (7) In the event that property upon which the credit allowed by this sec-
6 tion has been used ceases to qualify for the credit allowed by section
7 63-3029B, Idaho Code, the recapture of credit under this section shall be in
8 the same proportion and subject to the same provisions as the amount of credit
9 required to be recaptured under section 63-3029B, Idaho Code.
10 (8) (a) Subject to the requirements of this subsection, a taxpayer enti-
11 tled to the credit or to an unused portion of the credit allowed by this
12 section may transfer the unused credit to another taxpayer required to
13 file a return under this chapter.
14 (b) Before completing a transfer under this subsection, the transferor
15 shall notify the state tax commission of its intention to transfer the
16 credit and the identity of the transferee. The state tax commission shall
17 provide the transferor with a written statement of the amount of credit
18 available under this section as then appearing in the commission's records
19 and the number of years the credit may be carried over. The transferor
20 shall provide the transferee with the original statement. The transferee
21 shall attach a copy of the statement to any return in regard to which the
22 transferred credit is claimed.
23 (c) In the event that after the transfer the state tax commission deter-
24 mines that the amount of credit properly available under this section is
25 less than the amount claimed by the transferor of the credit and shown in
26 the statement described in subsection (8)(b) of this section or that the
27 credit is subject to recapture, the commission shall assess the amount of
28 overstated credit as taxes due from the transferor and not the transferee.
29 The assessment shall be made in the manner provided for a deficiency in
30 taxes under this chapter.
31 (9) In addition to other needed rules, the state tax commission may pro-
32 mulgate rules prescribing:
33 (a) In the case of S corporations, partnerships, trusts or estates, a
34 method of attributing the credit under this section to the shareholders,
35 partners or beneficiaries in proportion to their share of the income from
36 the S corporation, partnership, trust or estate.
37 (b) A requirement that a transferor under subsection (8) of this section,
38 prior to obtaining the written statement provided in subsection (8)(b) of
39 this section, post such bond or security as the state tax commission may
40 require to secure any liability referred to in subsection (8)(c) of this
41 section. Such rules shall provide an opportunity for a taxpayer, upon a
42 showing of financial responsibility, to have the bond waiver, for notice
43 of denial of waiver in accordance with section 63-3045, Idaho Code, and
44 for review in accordance with section 63-3045B, Idaho Code.
45 SECTION 18. That Chapter 30, Title 63, Idaho Code, be, and the same is
46 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
47 ignated as Section 63-3029K, Idaho Code, and to read as follows:
48 63-3029K. VENTURE CAPITAL INCOME TAX INVESTMENT CREDIT. (1) Subject to
49 the limitations of this section, for taxable years beginning between January
50 1, 2001, and December 31, 2005, inclusive, there shall be allowed to a tax-
51 payer a nonrefundable credit against taxes imposed by sections 63-3024,
52 63-3025 and 63-3025A, Idaho Code, in the amount allowed by subsection (2) of
53 this section for investments described in subsection (2) of this section made
19
1 in Idaho. The credit shall be in addition to the credit for capital invest-
2 ment permitted by section 63-3029B, Idaho Code.
3 (2) The credit permitted in subsection (1) of this section shall be ten
4 percent (10%) of the taxpayer's investment made during the taxable year in an
5 Idaho private venture capital company.
6 (3) As used in this section:
7 (a) Definition. "Idaho private venture capital company" means a corpora-
8 tion, limited liability company, partnership or other entity, with its
9 principal place of business located within Idaho which meets the following
10 criteria:
11 (i) Committed capitalization of not less than five million dollars
12 ($5,000,000) and contributed capital of not less than twenty-five
13 percent (25%) of its committed capitalization;
14 (ii) Having a purpose and objective of making at least fifty percent
15 (50%) of its venture or risk capital available to business enter-
16 prises that are headquartered and managed in Idaho and whose primary
17 business activities are reasonably expected to establish or expand
18 the development of business and industry within Idaho; and
19 (iii) Investment of not more than twenty-five percent (25%) of its
20 committed funds in any one (1) company.
21 (b) Certification. An entity shall not qualify as an Idaho private ven-
22 ture capital company until the company applies to and obtains from the
23 director of the Idaho department of finance, hereafter referred to as
24 "director," a certificate confirming that it meets the criteria of this
25 section. Applications submitted to the director shall contain such infor-
26 mation relating to the applicant as the director shall require, and a fee
27 as set by the director in an amount not to exceed five hundred dollars
28 ($500). Unless the Idaho private venture capital company is decertified as
29 described in subsection (3)(f) of this section, a copy of the certifica-
30 tion shall be provided by the Idaho private venture capital company to the
31 investor seeking the credit allowed by this section who shall attach a
32 copy to the original return on which the credit is claimed.
33 (c) Requirements to maintain certification. To continue in certifica-
34 tion, an Idaho private venture capital company shall:
35 (i) Invest at least thirty percent (30%) of its original capital-
36 ization at the end of the initial three (3) years in such a manner as
37 to acquire equity in the ventures in which the investments are made;
38 (ii) Have invested at least fifty percent (50%) in the same manner
39 at the end of five (5) years;
40 (iii) At the time of an initial investment, have no investor or com-
41 bination of investors in that Idaho private venture capital company
42 who own a controlling equity interest in a business in which the ven-
43 ture capital company is investing;
44 (iv) Not invest funds for use by an Idaho business for oil and gas
45 exploration and development, for real estate development or apprecia-
46 tion, or for banking or lending operations. Any investment by an
47 Idaho private venture capital company in any of these sectors shall
48 not be counted as equity investments for the purpose of continuing
49 certification under this section;
50 (v) Meet such books and records or other requirements as the direc-
51 tor may, by rule or order, direct; and
52 (vi) Pay an annual renewal fee in an amount set by the director not
53 to exceed five hundred dollars ($500).
54 (d) Reporting requirements. Each certified Idaho private venture capital
55 company shall report to the director on an annual basis such information
20
1 as the director requires to be submitted to maintain certification. As a
2 part of such information, each Idaho private venture capital company shall
3 report the name, address and taxpayer identification number of each inves-
4 tor who has invested in such company, the amounts invested by each such
5 investor and the companies in which the Idaho private venture capital com-
6 pany has invested. The director shall provide the information contained in
7 this subsection to the state tax commission on an annual basis.
8 (e) Compliance examinations. All the records of a certified Idaho private
9 venture capital company are subject at any time to such reasonable peri-
10 odic, special or other examinations by representatives of the director, as
11 the director deems necessary or appropriate in the public interest. The
12 director, or his designee, may examine under oath any of the officers,
13 directors, agents, employees, or investors of an Idaho private venture
14 capital company regarding the affairs and business of the company. The
15 director may administer oaths, subpoena witnesses, require the production
16 of any books, papers, correspondence, or other documents or records which
17 the director deems relevant or material to the inquiry. In the case of
18 refusal to obey a subpoena issued to a person, any court of competent
19 jurisdiction, upon application of the director, may issue to that person
20 an order requiring him to appear before the director or the officer desig-
21 nated by him, there to produce documentary evidence if so ordered or to
22 give evidence relating to the matter under inquiry. Any failure to obey
23 such order of the court may be punished by the court as contempt of court.
24 (f) Decertification. If the director determines that a certified Idaho
25 private venture capital company is not in substantial compliance with the
26 requirements for continuing certification or is in violation of any other
27 provision of this act, the director shall, by written notice, inform the
28 officers of the company and the board of directors or partners that they
29 will be decertified in one hundred twenty (120) days from the date of
30 mailing of the notice unless they correct the deficiencies and are once
31 again in compliance with the requirements for certification. At the end
32 of the one hundred twenty (120) day period, if the Idaho private venture
33 capital company is still not in substantial compliance, the director shall
34 send a notice of decertification to the company and to the state tax com-
35 mission.
36 (g) Liability disclaimed. The state of Idaho, the department of finance
37 and its employees and agents may not be held civilly or criminally liable
38 or liable upon their official bonds to any person including, but not lim-
39 ited to, investors, Idaho private venture capital companies, and appli-
40 cants to become an Idaho private venture capital company, for action taken
41 under this section or for any failure to act under it.
42 (h) To facilitate furtherance of the purposes of this section with other
43 state and federal programs including, but not limited to, small business
44 investment companies and business and industrial development companies,
45 the director shall have authority to waive any provision of this subsec-
46 tion (3) which for good cause shown, he deems appropriate and in the pub-
47 lic interest.
48 (i) The director may promulgate rules or issue orders as necessary to
49 implement this section.
50 (j) Documents and other materials submitted by Idaho private venture cap-
51 ital companies or by Idaho businesses pursuant to this subsection shall be
52 exempt from public disclosure.
53 (4) The credit allowed by subsection (1) of this section together with
54 any credits carried forward under subsection (6) of this section shall not
55 exceed in any one (1) taxable year either:
21
1 (a) Fifty percent (50%) of the amount of tax due under sections 63-3024,
2 63-3025 and 63-3025A, Idaho Code, after allowance for all other credits
3 permitted by this chapter; or
4 (b) One hundred fifty thousand dollars ($150,000).
5 (5) In the case of a group of corporations filing a combined report under
6 subsection (t) of section 63-3027, Idaho Code, credit earned by one (1) member
7 of the group but not used by that member may be used by another member of the
8 group, subject to the provisions of subsection (6) of this section, instead of
9 carried over. For a combined group of corporations, credit carried forward may
10 be claimed by any member of the group unless the member who earned the credit
11 is no longer included in the combined group.
12 (6) If the credit allowed by subsection (1) of this section exceeds the
13 limitation under subsection (4) of this section the excess amount may be car-
14 ried forward for a period that does not exceed the next fourteen (14) taxable
15 years. When credits earned in more than one (1) taxable year are available,
16 the oldest credits shall be applied first.
17 (7) In the event that the company in which the investment was made ceases
18 to qualify as an Idaho private venture capital company before the expiration
19 of the carryover period provided in subsection (6) of this section, the por-
20 tion of the credit equal to the portion of the carryover period during which
21 the company did not so qualify shall be subject to recapture. The recapture
22 must be reported on the income tax return of the taxpayer who earned the
23 credit subject to the requirements for amounts recaptured under section
24 63-3029B, Idaho Code.
25 (8) (a) Subject to the requirements of this subsection, a taxpayer enti-
26 tled to the credit or to an unused portion of the credit allowed by this
27 section may transfer the unused credit to another taxpayer required to
28 file a return under this chapter.
29 (b) Before completing a transfer under this subsection, the transferor
30 shall notify the state tax commission of its intention to transfer the
31 credit and the identity of the transferee. The state tax commission shall
32 provide the transferor with a written statement of the amount of credit
33 available under this section as then appearing in the commission's records
34 and the number of years the credit may be carried over. The transferor
35 shall provide the transferee with the original statement. The transferee
36 shall attach a copy of the statement to any return in regard to which the
37 transferred credit is claimed.
38 (c) In the event that after the transfer the state tax commission deter-
39 mines that the amount of credit properly available under this section is
40 less than the amount claimed by the transferor of the credit and shown in
41 the statement described in subsection (8)(b) of this section, the commis-
42 sion shall assess the amount of overstated credit as taxes due from the
43 transferor and not the transferee. The assessment shall be made in the
44 manner provided for a deficiency in taxes under this chapter.
45 (9) In addition to other needed rules, the state tax commission may pro-
46 mulgate rules prescribing:
47 (a) In the case of S corporations, partnerships, trusts or estates, a
48 method of attributing the credit under this section to the shareholders,
49 partners or beneficiaries in proportion to their share of the income from
50 the S corporation, partnership, trust or estate.
51 (b) A requirement that a transferor under subsection (8) of this section,
52 prior to obtaining the written statement provided in subsection (8)(b) of
53 this section, post such bond or security as the state tax commission may
54 require to secure any liability referred to in subsection (8)(c) of this
55 section. Such rule shall provide an opportunity for a taxpayer, upon a
22
1 showing of financial responsibility, to have the bond waiver, for notice
2 of denial of waiver in accordance with section 63-3045, Idaho Code, and
3 for review in accordance with section 63-3045B, Idaho Code.
4 SECTION 19. That Sections 63-3029E and 63-3029F, Idaho Code, be, and the
5 same are hereby repealed.
6 SECTION 20. That Chapter 30, Title 63, Idaho Code, be, and the same is
7 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
8 ignated as Section 63-3029E, Idaho Code, and to read as follows:
9 63-3029E. DEFINITIONS -- CONSTRUCTION OF TERMS. As used in this section
10 and in section 63-3029F, Idaho Code:
11 (1) (a) "New employee" means a person from whom Idaho income tax has
12 been withheld, employed by the taxpayer in a revenue-producing enterprise
13 creating value-added natural resource products, and covered for unemploy-
14 ment insurance purposes under chapter 13, title 72, Idaho Code, during the
15 taxable year for which the credit allowed by section 63-3029F, Idaho Code,
16 is claimed. A person shall be deemed to be so engaged if such person per-
17 forms duties on:
18 (i) A regular full-time basis; or
19 (ii) A part-time basis if such person is customarily performing such
20 duties at least twenty (20) hours per week.
21 No credit shall be earned unless the new employee shall have performed
22 such duties for the taxpayer for a minimum of nine (9) months during the
23 taxable year for which the credit is claimed.
24 (b) The provisions of paragraph (a) of this subsection notwithstanding,
25 no credit shall be allowed for employment of persons by a taxpayer who
26 acquires a revenue-producing enterprise from another taxpayer or who oper-
27 ates in a place of business the same or a substantially identical revenue-
28 producing value-added natural resource products enterprise as operated by
29 another taxpayer within the prior twelve (12) months, except as the prior
30 taxpayer would have qualified under the provisions of paragraph (c) of
31 this subsection. Employees transferred from a related taxpayer shall not
32 be included in the computation of the credit.
33 (c) The number of employees during any taxable year for any taxpayer
34 shall be the mathematical average of the number of employees reported to
35 the Idaho department of labor for employment security purposes during the
36 twelve (12) months of the taxable year which qualified under paragraph (a)
37 of this subsection. In the event the business is in operation for less
38 than the entire taxable year, the number of employees of the business for
39 the year shall be the average number actually employed during the months
40 of operation, providing that the qualifications of paragraph (a) of this
41 subsection are met.
42 (2) "Revenue-producing enterprise" means the production, assembly, fabri-
43 cation, manufacture or processing of any natural resource product.
44 (3) "Same or a substantially identical revenue-producing enterprise"
45 means a revenue-producing enterprise in which the products produced or sold,
46 or the activities conducted are the same in character and use and are pro-
47 duced, sold or conducted in the same manner as, or for the same types of cus-
48 tomers as, the products or activities produced, sold or conducted in another
49 revenue-producing enterprise.
50 SECTION 21. That Chapter 30, Title 63, Idaho Code, be, and the same is
51 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
23
1 ignated as Section 63-3029F, Idaho Code, and to read as follows:
2 63-3029F. SPECIAL CREDIT AVAILABLE -- NEW EMPLOYEES. (1) Any taxpayer
3 shall be allowed a credit, in an amount determined under subsection (2) of
4 this section, against the tax imposed by this chapter, other than the tax
5 imposed by section 63-3082, Idaho Code, for any taxable year during which the
6 taxpayer's employment of new employees, as defined under section 63-3029E(1),
7 Idaho Code, increases above the taxpayer's average employment for either: (a)
8 the prior taxable year, or (b) the average of three (3) prior taxable years,
9 whichever is higher. No credit shall be allowed under this section unless the
10 number of new employees equals or exceeds one (1) person.
11 (2) The credit authorized in subsection (1) of this section shall be five
12 hundred dollars ($500) per new employee, but the total credit allowed shall
13 not exceed three and one-quarter percent (3.25%) of net income from the
14 taxpayer's corporate, proprietorship, partnership, small business corporation
15 or limited liability company revenue-producing enterprise in which the employ-
16 ment occurred. Additionally, the total of this and all other credits allowed
17 under this chapter except for the credits allowed under sections 63-3024A,
18 63-3025D and 63-3029, Idaho Code, taken during any taxable year shall not
19 exceed forty-five percent (45%) of the tax otherwise imposed on the taxpayer
20 for the taxable year for which such credit is allowed.
21 (3) If the sum of the credit carryovers from the credit allowed by sub-
22 section (2) of this section and the amount of credit for the taxable year from
23 the credit allowed by subsection (2) of this section exceed the limitation
24 imposed by subsection (2) of this section for the current taxable year, the
25 excess attributable to the current taxable year's credit shall be a credit
26 carryover to the three (3) succeeding taxable years. The entire amount of
27 unused credit shall be carried forward to the earliest of the succeeding
28 years, wherein the oldest available unused credit shall be used first, so long
29 as the employment level for which the credit was granted is still maintained.
30 SECTION 22. The provisions of Section 5, Sections 10 through 13 and Sec-
31 tions 16, 17 and 18 of this act are hereby declared to be nonseverable from
32 other provisions within each section and if any provision of any of those sec-
33 tions or the application of such provision to any person or circumstance is
34 declared invalid for any reason, such declaration shall render the entire sec-
35 tion invalid but not other sections of this act.
36 SECTION 23. An emergency existing therefor, which emergency is hereby
37 declared to exist, Sections 1 through 18 and Section 22 of this act shall be
38 in full force and effect on and after passage and approval and retroactively
39 to January 1, 2001. Sections 19, 20 and 21 of this act shall be in full force
40 and effect on and after January 1, 2006.
STATEMENT OF PURPOSE
RS 11051
TI-us income tax relief bill makes permanent a .5% rate
reduction from year 2000 rate for individuals, rebates 10.6% of
1999 income tax paid to individuals subject to a $25 minimum and
$2,500 maximum, permanently doubles grocery credit for everyone
and permanently reduces the corporate income rate .5%. It
expands the current capital gains exclusion from 60% to 100% for
certain tangible assets. It provides five new or expanded
credits for Idaho business development including: research and
development expenditures, creation of new jobs, providing new
venture capital, installing broadband communications equipment,
and investing in counties with high unemployment or low personal
income. It changes the child care deduction to a credit equal to
half the federal credit and permanently increases the elderly
dependant care credit from $100 to $500.
FISCAL IMPACT
Provision
FY FY
2002 2003
Individual rate reduction 14.6 61.2
Individual rebate 91
Grocery credit 18.6 .2
Corporate rate reduction 3.4 5.1
Business credits
Research and development 7.0 .75
New Jobs 1.5
Venture Capital 2.0
Broadband 35
County incentive 7.3
Child care credit 1.5
Elderly dependant care 1.2
Capital gains 8.7 _______
$ 160.3 $ 67.25
Contact
Name: Representative Dolores Crow
Phone: 332 1000
STATEMENT OF PURPOSE/FISCAL NOTE H 20