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H0651aa,aaS.........................................by REVENUE AND TAXATION
INCOME TAX CREDIT - Amends existing law to provide that for the income tax
credit for new employees who are earning an average of fifteen dollars and
fifty cents per hour and are eligible for employer provided health and
accident coverage, the credit shall be one thousand dollars per employee.
02/11 House intro - 1st rdg - to printing
02/12 Rpt prt - to Rev/Tax
02/18 Rpt out - rec d/p - to 2nd rdg
02/19 2nd rdg - to 3rd rdg
02/23 To Gen Ord
02/26 Rpt out amen - to engros
02/27 Rpt engros - 1st rdg - to 2nd rdg as amen
03/01 2nd rdg - to 3rd rdg as amen
03/04 3rd rdg as amen - PASSED - 55-14-1
AYES -- Andersen, Barraclough, Barrett, Bauer, Bedke, Bell, Black,
Block, Bolz, Bradford, Campbell, Cannon, Clark, Collins, Crow, Cuddy,
Deal, Denney, Eberle, Edmunson, Ellsworth, Eskridge, Field(18),
Field(23), Gagner, Garrett, Jones, Kellogg, Kulczyk, Lake, Langford,
McGeachin, McKague, Meyer, Miller, Moyle, Nielsen, Raybould,
Ridinger, Ring, Roberts, Robison, Rydalch, Sali, Schaefer, Shepherd,
Shirley, Skippen, Smith(30), Smylie, Snodgrass, Stevenson,
Trail(Bennett), Wood, Mr. Speaker
NAYS -- Bayer, Boe, Douglas, Harwood, Henbest, Jaquet, Langhorst,
Martinez, Mitchell, Naccarato, Pasley-Stuart, Ringo, Sayler,
Smith(24)
Absent and excused -- Wills
Floor Sponsor - Cuddy
Title apvd - to Senate
03/05 Senate intro - 1st rdg - to Loc Gov
03/11 Rpt out - to 14th Ord
Rpt out amen - to 1st rdg as amen
03/12 1st rdg - to 2nd rdg as amen
03/15 2nd rdg - to 3rd rdg as amen
03/16 3rd rdg as amen - PASSED - 31-0-4
AYES -- Andreason, Bailey, Brandt, Bunderson, Burkett, Calabretta,
Cameron, Compton, Darrington, Davis, Gannon, Geddes, Goedde, Hill,
Kennedy, Keough, Little, Lodge, Malepeai, Marley, McKenzie,
McWilliams, Noble, Pearce, Richardson, Schroeder, Sorensen, Stegner,
Stennett, Sweet, Werk
NAYS -- None
Absent and excused -- Burtenshaw, Ingram, Noh, Williams
Floor Sponsor - McKenzie
Title apvd - to House
03/17 House concurred in Senate amens - to engros
03/18 Rpt engros - 1st rdg - to 2nd rdg as amen
03/19 2nd rdg - to 3rd rdg as amen
03/20 3rd rdg as amen - PASSED - 61-3-6
AYES -- Andersen, Barraclough, Bayer, Bedke, Bell, Black, Block, Boe,
Bolz, Bradford, Campbell, Cannon, Collins, Crow, Cuddy, Deal, Denney,
Douglas, Eberle, Edmunson, Ellsworth, Eskridge, Field(18), Field(23),
Gagner, Garrett, Henbest, Jaquet, Jones, Kellogg, Lake, Langford,
Langhorst, Martinez, McGeachin, McKague, Meyer, Miller, Mitchell,
Moyle, Naccarato, Nielsen, Pasley-Stuart, Raybould, Ridinger, Ring,
Ringo, Roberts, Robison, Rydalch, Sali, Sayler, Schaefer, Shepherd,
Shirley, Skippen, Smith(30), Smylie, Snodgrass, Stevenson, Wills
NAYS -- Barrett, Kulczyk, Wood
Absent and excused -- Bauer, Clark, Harwood, Smith(24), Trail, Mr.
Speaker
Floor Sponsor - Cuddy
Title apvd - To enrol - Rpt enrol - Sp signed
03/20 Pres signed
03/22 To Governor
03/26 Governor signed
Session Law Chapter 347
Effective: 01/01/04
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 651
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO INCOME TAX CREDITS FOR NEW EMPLOYEES; AMENDING SECTION 63-3029F,
3 IDAHO CODE, TO PROVIDE THAT IN THE CASE OF CERTAIN NEW EMPLOYEES EARNING
4 AN AVERAGE OF FIFTEEN DOLLARS AND FIFTY CENTS PER HOUR AND ELIGIBLE FOR
5 EMPLOYER PROVIDED HEALTH AND ACCIDENT COVERAGE THE STATE INCOME TAX CREDIT
6 SHALL BE ONE THOUSAND DOLLARS PER EMPLOYEE; DECLARING AN EMERGENCY AND
7 PROVIDING RETROACTIVE APPLICATION.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Section 63-3029F, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 63-3029F. SPECIAL CREDIT AVAILABLE -- NEW EMPLOYEES. (1) Any taxpayer
12 shall be allowed a credit, in an amount determined under subsection (2) of
13 this section, against the tax imposed by this chapter, other than the tax
14 imposed by section 63-3082, Idaho Code, for any taxable year during which the
15 taxpayer's employment of new employees, as defined under section 63-3029E(1),
16 Idaho Code, increases above the taxpayer's average employment for either: (a)
17 the prior taxable year, or (b) the average of three (3) prior taxable years,
18 whichever is higher. No credit shall be allowed under this section unless the
19 number of new employees equals or exceeds one (1) person.
20 (2) (a) The credit authorized in subsection (1) of this section shall be:
21 (i) Ffive hundred dollars ($500) per new employee described in sub-
22 section (2)(d) of this section; and
23 (ii) One thousand dollars ($1,000) per new employee described in
24 subsection (2)(c) of this section.
25 (b) but tThe total credit allowed by this section shall not exceed three
26 and one-quarter percent (3.25%) of net income from the taxpayer's corpo-
27 rate, proprietorship, partnership, small business corporation or limited
28 liability company revenue-producing enterprise in which the employment
29 occurred. Additionally, the total amount of this and all other credits
30 allowed under this chapter except for the credits allowed under section
31 63-3029, Idaho Code, shall not exceed fifty percent (50%) of the tax lia-
32 bility of the taxpayer. The tax liability of the taxpayer shall be the tax
33 after deducting the credit allowed by section 63-3029, Idaho Code.
34 (c) The credit allowed for new employees described in this paragraph
35 shall apply to an employee who, in the calendar year ending during the
36 taxable year for which the credit is claimed, received annual earnings at
37 an average rate of fifteen dollars and fifty cents ($15.50) or more per
38 hour worked and who, during such calendar year, was eligible to receive
39 employer provided coverage under an accident or health plan described in
40 section 105 of the Internal Revenue Code.
41 (d) The credit allowed for new employees described in this paragraph
42 shall apply to an employee not described in subsection (2)(c) of this sec-
43 tion and who is employed in a revenue-producing enterprise as defined in
2
1 section 63-3029E, Idaho Code.
2 (3) If the sum of the credit carryovers from the credit allowed by sub-
3 section (2) of this section and the amount of credit for the taxable year from
4 the credit allowed by subsection (2) of this section exceed the limitation
5 imposed by subsection (2) of this section for the current taxable year, the
6 excess attributable to the current taxable year's credit shall be a credit
7 carryover to the three (3) succeeding taxable years. The entire amount of
8 unused credit shall be carried forward to the earliest of the succeeding
9 years, wherein the oldest available unused credit shall be used first, so long
10 as the employment level for which the credit was granted is still maintained.
11 SECTION 2. An emergency existing therefor, which emergency is hereby
12 declared to exist, this act shall be in full force and effect on and after its
13 passage and approval, and retroactively to January 1, 2004.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
Moved by McKenzie
Seconded by Werk
IN THE SENATE
SENATE AMENDMENT TO H.B. NO. 651, As Amended
1 AMENDMENT TO SECTION 1
2 On page 1 of the engrossed bill, in line 37, delete "twelve dollars and
3 fifty cents ($12.50)" and insert: "fifteen dollars and fifty cents ($15.50)".
4 CORRECTION TO TITLE
5 On page 1, in line 4, delete "TWELVE" and insert: "FIFTEEN".
Moved by Moyle
Seconded by Cuddy
IN THE HOUSE OF REPRESENTATIVES
HOUSE AMENDMENT TO H.B. NO. 651
6 AMENDMENT TO SECTION 1
7 On page 1 of the printed bill, in line 22, delete "and" and insert: "or";
8 in line 24, following "section" insert: ", but not both"; and in line 37
9 delete "fifteen dollars and fifty cents ($15.50)" and insert: "twelve dollars
10 and fifty cents ($12.50)".
11 CORRECTION TO TITLE
12 On page 1, in line 4, delete "FIFTEEN DOLLARS" and insert: "TWELVE DOL-
13 LARS".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 651, As Amended
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO INCOME TAX CREDITS FOR NEW EMPLOYEES; AMENDING SECTION 63-3029F,
3 IDAHO CODE, TO PROVIDE THAT IN THE CASE OF CERTAIN NEW EMPLOYEES EARNING
4 AN AVERAGE OF TWELVE DOLLARS AND FIFTY CENTS PER HOUR AND ELIGIBLE FOR
5 EMPLOYER PROVIDED HEALTH AND ACCIDENT COVERAGE THE STATE INCOME TAX CREDIT
6 SHALL BE ONE THOUSAND DOLLARS PER EMPLOYEE; DECLARING AN EMERGENCY AND
7 PROVIDING RETROACTIVE APPLICATION.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Section 63-3029F, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 63-3029F. SPECIAL CREDIT AVAILABLE -- NEW EMPLOYEES. (1) Any taxpayer
12 shall be allowed a credit, in an amount determined under subsection (2) of
13 this section, against the tax imposed by this chapter, other than the tax
14 imposed by section 63-3082, Idaho Code, for any taxable year during which the
15 taxpayer's employment of new employees, as defined under section 63-3029E(1),
16 Idaho Code, increases above the taxpayer's average employment for either: (a)
17 the prior taxable year, or (b) the average of three (3) prior taxable years,
18 whichever is higher. No credit shall be allowed under this section unless the
19 number of new employees equals or exceeds one (1) person.
20 (2) (a) The credit authorized in subsection (1) of this section shall be:
21 (i) Ffive hundred dollars ($500) per new employee described in sub-
22 section (2)(d) of this section; or
23 (ii) One thousand dollars ($1,000) per new employee described in
24 subsection (2)(c) of this section, but not both.
25 (b) but tThe total credit allowed by this section shall not exceed three
26 and one-quarter percent (3.25%) of net income from the taxpayer's corpo-
27 rate, proprietorship, partnership, small business corporation or limited
28 liability company revenue-producing enterprise in which the employment
29 occurred. Additionally, the total amount of this and all other credits
30 allowed under this chapter except for the credits allowed under section
31 63-3029, Idaho Code, shall not exceed fifty percent (50%) of the tax lia-
32 bility of the taxpayer. The tax liability of the taxpayer shall be the tax
33 after deducting the credit allowed by section 63-3029, Idaho Code.
34 (c) The credit allowed for new employees described in this paragraph
35 shall apply to an employee who, in the calendar year ending during the
36 taxable year for which the credit is claimed, received annual earnings at
37 an average rate of twelve dollars and fifty cents ($12.50) or more per
38 hour worked and who, during such calendar year, was eligible to receive
39 employer provided coverage under an accident or health plan described in
40 section 105 of the Internal Revenue Code.
41 (d) The credit allowed for new employees described in this paragraph
42 shall apply to an employee not described in subsection (2)(c) of this sec-
43 tion and who is employed in a revenue-producing enterprise as defined in
2
1 section 63-3029E, Idaho Code.
2 (3) If the sum of the credit carryovers from the credit allowed by sub-
3 section (2) of this section and the amount of credit for the taxable year from
4 the credit allowed by subsection (2) of this section exceed the limitation
5 imposed by subsection (2) of this section for the current taxable year, the
6 excess attributable to the current taxable year's credit shall be a credit
7 carryover to the three (3) succeeding taxable years. The entire amount of
8 unused credit shall be carried forward to the earliest of the succeeding
9 years, wherein the oldest available unused credit shall be used first, so long
10 as the employment level for which the credit was granted is still maintained.
11 SECTION 2. An emergency existing therefor, which emergency is hereby
12 declared to exist, this act shall be in full force and effect on and after its
13 passage and approval, and retroactively to January 1, 2004.
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 651, As Amended, As Amended in the Senate
BY REVENUE AND TAXATION COMMITTEE
14 AN ACT
15 RELATING TO INCOME TAX CREDITS FOR NEW EMPLOYEES; AMENDING SECTION 63-3029F,
16 IDAHO CODE, TO PROVIDE THAT IN THE CASE OF CERTAIN NEW EMPLOYEES EARNING
17 AN AVERAGE OF FIFTEEN DOLLARS AND FIFTY CENTS PER HOUR AND ELIGIBLE FOR
18 EMPLOYER PROVIDED HEALTH AND ACCIDENT COVERAGE THE STATE INCOME TAX CREDIT
19 SHALL BE ONE THOUSAND DOLLARS PER EMPLOYEE; DECLARING AN EMERGENCY AND
20 PROVIDING RETROACTIVE APPLICATION.
21 Be It Enacted by the Legislature of the State of Idaho:
22 SECTION 3. That Section 63-3029F, Idaho Code, be, and the same is hereby
23 amended to read as follows:
24 63-3029F. SPECIAL CREDIT AVAILABLE -- NEW EMPLOYEES. (1) Any taxpayer
25 shall be allowed a credit, in an amount determined under subsection (2) of
26 this section, against the tax imposed by this chapter, other than the tax
27 imposed by section 63-3082, Idaho Code, for any taxable year during which the
28 taxpayer's employment of new employees, as defined under section 63-3029E(1),
29 Idaho Code, increases above the taxpayer's average employment for either: (a)
30 the prior taxable year, or (b) the average of three (3) prior taxable years,
31 whichever is higher. No credit shall be allowed under this section unless the
32 number of new employees equals or exceeds one (1) person.
33 (2) (a) The credit authorized in subsection (1) of this section shall be:
34 (i) Ffive hundred dollars ($500) per new employee described in sub-
35 section (2)(d) of this section; or
36 (ii) One thousand dollars ($1,000) per new employee described in
37 subsection (2)(c) of this section, but not both.
38 (b) but tThe total credit allowed by this section shall not exceed three
39 and one-quarter percent (3.25%) of net income from the taxpayer's corpo-
40 rate, proprietorship, partnership, small business corporation or limited
41 liability company revenue-producing enterprise in which the employment
42 occurred. Additionally, the total amount of this and all other credits
43 allowed under this chapter except for the credits allowed under section
44 63-3029, Idaho Code, shall not exceed fifty percent (50%) of the tax lia-
45 bility of the taxpayer. The tax liability of the taxpayer shall be the tax
3
1 after deducting the credit allowed by section 63-3029, Idaho Code.
2 (c) The credit allowed for new employees described in this paragraph
3 shall apply to an employee who, in the calendar year ending during the
4 taxable year for which the credit is claimed, received annual earnings at
5 an average rate of fifteen dollars and fifty cents ($15.50) or more per
6 hour worked and who, during such calendar year, was eligible to receive
7 employer provided coverage under an accident or health plan described in
8 section 105 of the Internal Revenue Code.
9 (d) The credit allowed for new employees described in this paragraph
10 shall apply to an employee not described in subsection (2)(c) of this sec-
11 tion and who is employed in a revenue-producing enterprise as defined in
12 section 63-3029E, Idaho Code.
13 (3) If the sum of the credit carryovers from the credit allowed by sub-
14 section (2) of this section and the amount of credit for the taxable year from
15 the credit allowed by subsection (2) of this section exceed the limitation
16 imposed by subsection (2) of this section for the current taxable year, the
17 excess attributable to the current taxable year's credit shall be a credit
18 carryover to the three (3) succeeding taxable years. The entire amount of
19 unused credit shall be carried forward to the earliest of the succeeding
20 years, wherein the oldest available unused credit shall be used first, so long
21 as the employment level for which the credit was granted is still maintained.
22 SECTION 4. An emergency existing therefor, which emergency is hereby
23 declared to exist, this act shall be in full force and effect on and after its
24 passage and approval, and retroactively to January 1, 2004.
STATEMENT OF PURPOSE
RS 13811
This bill amends the Idaho income tax credit for new employees. An
expanded credit of $1,000 will be available for any business that
adds new employees whose annual earnings average $15.50 or more and
who are eligible to receive employer provided coverage under an
accident or health plan. The existing credit of $500 for new
employees in a natural resource based enterprise is retained
unchanged. The increased credit will be available for employers'
taxable years beginning on and after January 1, 2004.
FISCAL NOTE
Will allow additional credits against income tax of about $300,000
annually.
Contact
Name: Brian Whitlock
Agency: Office of the Governor
Phone: 334-2100
STATEMENT OF PURPOSE/FISCAL NOTE H 651