2002 Legislation
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HOUSE BILL NO. 537 – Income tax credit/mining/employees

HOUSE BILL NO. 537

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View Statement of Purpose / Fiscal Impact



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Daily Data Tracking History



H0537...............................................by REVENUE AND TAXATION
INCOME TAX - CREDIT - Adds to existing law to provide a state income tax
credit for each new employee employed in mining, if the taxpayer has not
claimed another new jobs natural resources tax credit; and to provide a
state income tax credit for each employee employed in mining in Idaho.
                                                                        
02/01    House intro - 1st rdg - to printing
02/04    Rpt prt - to Rev/Tax
02/15    Rpt out - rec d/p - to 2nd rdg
02/18    2nd rdg - to 3rd rdg
02/21    Ret'd to Rev/Tax

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 537
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO INCOME TAXATION; AMENDING CHAPTER 30, TITLE 63, IDAHO CODE, BY THE
  3        ADDITION OF A NEW SECTION 63-3029M, IDAHO CODE, TO DEFINE TERMS,  TO  PRO-
  4        VIDE  FOR CONSTRUCTION OF TERMS,  TO PROVIDE A STATE INCOME TAX CREDIT FOR
  5        NEW EMPLOYEES EMPLOYED IN MINING IF THE TAXPAYER HAS NOT  CLAIMED  ANOTHER
  6        NEW JOBS NATURAL RESOURCES TAX CREDIT AND TO PROVIDE IF TAXES DUE ARE LESS
  7        THAN  THE  TOTAL CREDIT ALLOWED, THE TAXPAYER SHALL BE PAID A REFUND EQUAL
  8        TO THE BALANCE OF THE UNUSED CREDIT; AMENDING CHAPTER 30, TITLE 63,  IDAHO
  9        CODE,  BY  THE  ADDITION  OF A NEW SECTION 63-3029N, IDAHO CODE, TO DEFINE
 10        TERMS, TO PROVIDE FOR CONSTRUCTION OF TERMS, TO PROVIDE A STATE INCOME TAX
 11        CREDIT FOR TAXABLE YEAR 2002 ONLY FOR EMPLOYEES EMPLOYED IN MINING AND  TO
 12        PROVIDE  IF TAXES DUE ARE LESS THAN THE TOTAL CREDIT ALLOWED, THE TAXPAYER
 13        SHALL BE PAID A REFUND EQUAL TO THE BALANCE OF THE UNUSED CREDIT;  DECLAR-
 14        ING AN EMERGENCY AND PROVIDING RETROACTIVE APPLICATION.
                                                                        
 15    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 16        SECTION  1.  That  Chapter  30,  Title 63, Idaho Code, be, and the same is
 17    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 18    ignated as Section 63-3029M, Idaho Code, and to read as follows:
                                                                        
 19        63-3029M.  DEFINITIONS  --  CONSTRUCTION OF TERMS -- NEW EMPLOYEES IN MIN-
 20    ING. As used in this section:
 21        (1)  (a) "New employee" means a person from whom Idaho income tax has been
 22        withheld, employed by the taxpayer in  the  production  or  processing  of
 23        "valuable minerals" as defined in section 47-1205, Idaho Code, and covered
 24        for  unemployment  insurance  purposes  under  chapter 13, title 72, Idaho
 25        Code, during the taxable year for which the credit allowed by this section
 26        is claimed. A person shall be deemed to be so engaged if such person  per-
 27        forms duties on:
 28             (i)   A regular full-time basis; or
 29             (ii)  A part-time basis if such person is customarily performing such
 30             duties at least twenty (20) hours per week.
 31        No credit shall be earned pursuant to this section unless the new employee
 32        shall  have  performed  such duties for the taxpayer for a minimum of nine
 33        (9) months during the taxable year for which the credit is claimed.
 34        (b)  The provisions of paragraph (a) of this  subsection  notwithstanding,
 35        no  credit  shall  be  allowed for employment of persons by a taxpayer who
 36        acquires a production or processing of  a   valuable  mineral   enterprise
 37        from another taxpayer or who operates in a place of business the same or a
 38        substantially  identical  production  or  processing of a valuable mineral
 39        enterprise as operated by another taxpayer within the  prior  twelve  (12)
 40        months, except as the prior taxpayer would have qualified under the provi-
 41        sions  of  paragraph  (c) of this subsection. Employees transferred from a
 42        related taxpayer shall not be included in the computation of the credit.
 43        (c)  The number of employees during any  taxable  year  for  any  taxpayer
                                                                        
                                           2
                                                                        
  1        shall  be  the mathematical average of the number of employees reported to
  2        the Idaho department of labor for employment security purposes during  the
  3        twelve (12) months of the taxable year which qualified under paragraph (a)
  4        of  this  subsection.  In  the event the business is in operation for less
  5        than the entire taxable year, the number of employees of  the business for
  6        the year shall be the average number actually employed during  the  months
  7        of  operation,  providing that the qualifications of paragraph (a) of this
  8        subsection are met.
  9        (2)  "Same or a substantially valuable mineral enterprise" means  a  valu-
 10    able mineral enterprise in which the products produced or sold, or the activi-
 11    ties  conducted  are  the  same in character and use and are produced, sold or
 12    conducted in the same manner as, or for the same types of  customers  as,  the
 13    products or activities produced, sold or conducted in another valuable mineral
 14    enterprise.
 15        (3)  "Valuable  mineral  enterprise" means the activities performed in the
 16    extraction and processing of valuable minerals as defined in section  47-1205,
 17    Idaho Code,  from the ground, including, but not limited to, the excavation of
 18    pits, removal of minerals, crushing, milling, disposal of overburden, the con-
 19    struction of haulage roads, beneficiation, transportation, stockpiling, smelt-
 20    ing, calcining and chemical processing.
 21        (4)  If  the  taxpayer  has not claimed the tax credit pursuant to section
 22    63-3029E, Idaho Code, the taxpayer shall be allowed a  credit,  in  an  amount
 23    determined  under  subsection  (5) of this section, against the tax imposed by
 24    this chapter, other than the tax imposed by section 63-3082, Idaho  Code,  for
 25    any  taxable  year during which the taxpayer's employment of new employees, as
 26    defined in subsection (1) of this  section,  increases  above  the  taxpayer's
 27    average  employment for either: (a) the prior taxable year, or (b) the average
 28    of three (3) prior taxable years, whichever is  higher.  No  credit  shall  be
 29    allowed  under  this  section  unless  the  number  of new employees equals or
 30    exceeds one (1) person.
 31        (5)  The credit authorized by this section shall be five  hundred  dollars
 32    ($500)  per  new  employee during any taxable year. If taxes due are less than
 33    the total credit allowed, the taxpayer shall be paid a  refund  equal  to  the
 34    balance of the unused credit.
                                                                        
 35        SECTION  2.  That  Chapter  30,  Title 63, Idaho Code, be, and the same is
 36    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 37    ignated as Section 63-3029N, Idaho Code, and to read as follows:
                                                                        
 38        63-3029N.  DEFINITIONS -- CONSTRUCTION OF TERMS -- EMPLOYEES IN MINING. As
 39    used in this section:
 40        (1)  (a) "Employee"  means  a  person  from whom Idaho income tax has been
 41        withheld, employed by the taxpayer in  the  production  or  processing  of
 42        "valuable minerals" as defined in section 47-1205, Idaho Code, and covered
 43        for  unemployment  insurance  purposes  under  chapter 13, title 72, Idaho
 44        Code, during the taxable year for which the credit allowed by this section
 45        is claimed. A person shall be deemed to be so engaged if such person  per-
 46        forms duties on:
 47             (i)   A regular full-time basis; or
 48             (ii)  A part-time basis if such person is customarily performing such
 49             duties at least twenty (20) hours per week.
 50        No  credit  shall  be  earned pursuant to this section unless the employee
 51        shall have performed such duties for the taxpayer for a  minimum  of  nine
 52        (9) months during the taxable year for which the credit is claimed.
 53        (b)  The  number  of  employees  during  any taxable year for any taxpayer
                                                                        
                                           3
                                                                        
  1        shall be the mathematical average of the number of employees  reported  to
  2        the  Idaho department of labor for employment security purposes during the
  3        twelve (12) months of the taxable year which qualified under paragraph (a)
  4        of this subsection. In the event the business  is in  operation  for  less
  5        than  the entire taxable year, the number of employees of the business for
  6        the year shall be the average number actually employed during  the  months
  7        of  operation,  providing that the qualifications of paragraph (a) of this
  8        subsection are met.
  9        (2)  "Valuable mineral enterprise" means the activities performed  in  the
 10    extraction  and processing of valuable minerals as defined in section 47-1205,
 11    Idaho Code, from the ground, including, but not limited to, the excavation  of
 12    pits, removal of minerals, crushing, milling, disposal of overburden, the con-
 13    struction of haulage roads, beneficiation, transportation, stockpiling, smelt-
 14    ing, calcining and chemical processing.
 15        (3)  For  taxable year 2002 only, any taxpayer  shall be allowed a credit,
 16    in an amount determined under subsection (4) of this section, against the  tax
 17    imposed  by this chapter, other than the tax imposed by section 63-3082, Idaho
 18    Code, for any taxable year during which the taxpayer's employment of employees
 19    occurs, as defined in subsection (1) of  this  section.  No  credit  shall  be
 20    allowed  under  this section unless the number of employees  equals or exceeds
 21    one (1) person.
 22        (4)  The credit authorized by this section shall be five  hundred  dollars
 23    ($500)  per  employee  during any taxable year. If taxes due are less than the
 24    total credit allowed, the taxpayer shall be paid a refund equal to the balance
 25    of the unused credit.
                                                                        
 26        SECTION 3.  An emergency existing  therefor,  which  emergency  is  hereby
 27    declared to exist, this act shall be in full force and effect on and after its
 28    passage and approval, and retroactively to January 1, 2002.

Statement of Purpose / Fiscal Impact


                    STATEMENT OF PURPOSE
                       RS 11737C3

The purpose of this bill is twofold. First is to provide a onetime 
income tax credit of $500 per job for existing jobs in the mining 
industry. Second is to provide a $500 per job income tax credit for 
new jobs.

Contact
Name:	Jack Lyman, Idaho Mining Association
Phone:	342-0031



                         FISCAL IMPACT



The impact to the General Fund will be a reduction of $1.3 million 
based on an estimated 2,600 existing jobs. It is estimated that 100 
new jobs will be created in 2003, resulting in a fiscal impact of 
$50,000.




STATEMENT OF PURPOSE/FISCAL NOTE		H 537