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H0142...............................................by REVENUE AND TAXATION
CORPORATE HEADQUARTERS INCENTIVE ACT OF 2005 - Adds to existing law to
provide the "Idaho Corporate Headquarters Incentive Act of 2005"; to
provide an enhanced income tax incentive credit for certain qualified
investments; to provide an income tax credit for certain real property
improvements; to provide an enhanced new jobs credit for certain
employment; to authorize the state tax commission to adopt certain
administrative rules; to establish limitations; to permit sharing of
credits among taxpayers included in a combined report of income; to permit
carryovers of unused credits; to provide for recapture of income tax
credits in case of failure to meet and maintain designated requirements; to
provide for a rebate of sales and use taxes paid on qualified projects; to
provide recapture of refund in case of failure to meet and maintain
designated requirements; to provide for a rebate of certain property taxes
paid on qualified projects; to provide limitations; to provide for
recapture of the rebate in case of failure to meet and maintain designated
requirements; to provide for administration by the State Tax Commission;
and to provide a continuous appropriation of income tax receipts to fund
certain property tax rebates.
02/08 House intro - 1st rdg - to printing
02/09 Rpt prt - to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 142
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO TAXATION AND TO THE ENACTMENT OF THE IDAHO CORPORATE HEADQUARTERS
3 INCENTIVE ACT OF 2005; AMENDING TITLE 63, IDAHO CODE, BY THE ADDITION OF A
4 NEW CHAPTER 29, TITLE 63, IDAHO CODE, TO PROVIDE A SHORT TITLE, TO DEFINE
5 TERMS, TO PROVIDE AN ADDITIONAL INCOME TAX INVESTMENT CREDIT FOR CERTAIN
6 QUALIFIED INVESTMENTS AND LIMITATIONS THEREON, TO PROVIDE AN INCOME TAX
7 CREDIT FOR CERTAIN REAL PROPERTY IMPROVEMENTS AND LIMITATIONS THEREON, TO
8 PROVIDE AN ADDITIONAL NEW JOBS CREDIT FOR CERTAIN EMPLOYMENT AND LIMITA-
9 TIONS THEREON, TO AUTHORIZE THE STATE TAX COMMISSION TO ADOPT ADMINISTRA-
10 TIVE RULES RELATING TO S CORPORATIONS, PARTNERSHIPS, ESTATES AND TRUSTS,
11 AND RELATING TO REORGANIZATIONS, MERGERS AND LIQUIDATIONS, TO ESTABLISH
12 LIMITATIONS, TO PERMIT SHARING OF CREDITS AMONG TAXPAYERS INCLUDED IN A
13 COMBINED REPORT OF INCOME, TO PERMIT CARRYOVERS OF UNUSED CREDITS, TO PRO-
14 VIDE FOR RECAPTURE OF INCOME TAX CREDITS IN CASE OF FAILURE TO MEET AND
15 MAINTAIN DESIGNATED REQUIREMENTS, TO PROVIDE FOR A REBATE OF SALES AND USE
16 TAXES PAID ON QUALIFIED PROJECTS AND TO PROVIDE FOR RECAPTURE OF REFUND IN
17 CASE OF FAILURE TO MEET AND MAINTAIN DESIGNATED REQUIREMENTS, TO PROVIDE
18 FOR A REBATE OF CERTAIN PROPERTY TAXES PAID ON QUALIFIED PROJECTS AND TO
19 PROVIDE LIMITATIONS THEREON, TO PROVIDE FOR RECAPTURE OF THE REBATE IN
20 CASE OF FAILURE TO MEET AND MAINTAIN DESIGNATED REQUIREMENTS AND TO PRO-
21 VIDE FOR ADMINISTRATION BY THE STATE TAX COMMISSION; AMENDING SECTION
22 63-3067, IDAHO CODE, TO PROVIDE A CONTINUOUS APPROPRIATION OF INCOME TAX
23 RECEIPTS TO FUND CERTAIN PROPERTY TAX REBATES; DECLARING AN EMERGENCY AND
24 PROVIDING A RETROACTIVE EFFECTIVE DATE.
25 Be It Enacted By the Legislature of the State of Idaho:
26 SECTION 1. That Title 63, Idaho Code, be, and the same is hereby amended
27 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
28 ter 29, Title 63, Idaho Code, and to read as follows:
29 CHAPTER 29
30 THE IDAHO CORPORATE HEADQUARTERS INCENTIVE ACT OF 2005
31 63-2901. SHORT TITLE. This chapter shall be known and may be cited as
32 "The Idaho Corporate Headquarters Incentive Act of 2005."
33 63-2902. DEFINITIONS. (1) The definitions contained in the Idaho income
34 tax act, shall apply to this chapter unless modified in this chapter or unless
35 the context clearly requires another definition.
36 (2) As used in this chapter:
37 (a) "Commission" means the Idaho state tax commission.
38 (b) "Headquarters or administrative facilities" means facility or facili-
39 ties, including related parking facilities, where corporate staff employ-
40 ees are physically employed, and where the majority of the company's ser-
41 vices are handled either on a regional or national basis. Company services
2
1 may include: accounts receivable and payable, accounting, data processing,
2 distribution management, employee benefit plan, financial and securities
3 accounting, information technology, insurance, legal, merchandising, pay-
4 roll, personnel, purchasing/procurement, planning, reporting and compli-
5 ance, tax, treasury, or other headquarters-related services.
6 (c) "Idaho income tax act" means chapter 30, title 63, Idaho Code.
7 (d) "Investment in new plant" means investment in headquarters or admin-
8 istrative facilities, that are:
9 (i) Qualified investments; or
10 (ii) Buildings or structural components of buildings.
11 (e) "New employee":
12 (i) Means an individual, employed primarily within the project site
13 by the taxpayer, subject to Idaho income tax withholding whether or
14 not any amounts are required to be withheld, covered for unemployment
15 insurance purposes under chapter 13, title 72, Idaho Code, and who
16 was eligible to receive employer provided coverage under an accident
17 or health plan described in section 105 of the Internal Revenue Code
18 during the taxable year. A person shall be deemed to be so employed
19 if such person performs duties on:
20 1. A regular full-time basis; or
21 2. A part-time basis if such person is customarily performing
22 such duties at least twenty (20) hours per week.
23 (ii) The number of employees employed primarily within the project
24 site by the taxpayer, during any taxable year for a taxpayer shall be
25 the mathematical average of the number of such employees reported to
26 the Idaho department of commerce and labor for employment security
27 purposes during the twelve (12) months of the taxable year which
28 qualified under paragraph (e)(i) of this subsection (2). In the event
29 the business is in operation for less than the entire taxable year,
30 the number of employees of the taxpayer for the year shall be the
31 average number actually employed during the months of operation, pro-
32 vided that the qualifications of paragraph (e)(i) of this subsection
33 (2) are met.
34 (iii) Employees transferred from a related taxpayer or acquired as
35 part of the acquisition of a trade or business from another taxpayer
36 within the prior twelve (12) months are not included in this defini-
37 tion unless the transfer creates a net new job in Idaho.
38 (f) "Project period" means the period of time beginning at the earlier of
39 a physical change to the project site or the first employment of new
40 employees located in Idaho who are related to the activities at the proj-
41 ect site, but no earlier than January 1, 2005, and ending when the facili-
42 ties constituting the project are placed in service, but no later than
43 December 31, 2009.
44 (g) "Project site" means an area or areas at which headquarters and head-
45 quarters facilities are located and at which the tax incentive criteria
46 have been or will be met and which are either:
47 (i) A single, continuous geographic area located in this state at
48 which the headquarters or administrative facilities owned or leased
49 by the taxpayer are located; or
50 (ii) One (1) or more continuous geographic areas located in this
51 state if eighty percent (80%) or more of the investment required by
52 paragraph (2)(j)(i) of this section is made at one (1) of the areas.
53 (iii) The project site must be identified and described to the com-
54 mission by a taxpayer subject to tax under the Idaho income tax act,
55 in the form and manner prescribed by the commission.
3
1 (h) "Qualified investment" shall be defined as in section 63-3029B, Idaho
2 Code.
3 (i) "Recapture period" means:
4 (i) In the case of credits described in sections 63-2903 and
5 63-2904, Idaho Code, the same period for which a recapture of invest-
6 ment tax credit under section 63-3029B, Idaho Code, is required; or
7 (ii) In the case of credits described in sections 63-2905, 63-2907
8 and 63-2908, Idaho Code, five (5) years from the date the project
9 period ends.
10 (j) "Tax incentive criteria" means a taxpayer meeting at a project site
11 the requirements of both subparagraphs (i) and (ii) of this paragraph (j).
12 (i) During the project period, making capital investments in new
13 plant of at least fifty million dollars ($50,000,000) at the project
14 site.
15 (ii) During a period of time beginning on January 1, 2005, and end-
16 ing at the conclusion of the project period:
17 1. Increasing employment at the project site by at least five
18 hundred (500) new employees:
19 (A) Each of whom must earn at least twenty-four dollars
20 and four cents ($24.04) per hour worked during the
21 taxpayer's taxable year; or
22 (B) Each of whom is part of a group of five hundred (500)
23 or more employees at the project site which group on aver-
24 age earns at least twenty-eight dollars and eighty-five
25 cents ($28.85) per hour worked during the taxpayer's tax-
26 able year. Calculation of the group average earnings may
27 not include amounts paid to any employee earning more than
28 one hundred twenty dollars and nineteen cents ($120.19) per
29 hour worked during the taxpayer's taxable year.
30 (C) Earnings calculated pursuant to subparagraph (ii) of
31 this paragraph (j) shall include income upon which Idaho
32 income tax withholding is required under section 63-3035,
33 Idaho Code, but shall not include nonrecurring income such
34 as stock options.
35 (D) For purposes of determining whether the increased
36 employment threshold has been met, employment at the proj-
37 ect site shall be determined by calculating the increase of
38 such new employees reported to the Idaho department of com-
39 merce and labor for employment security purposes over the
40 employees so reported as of the beginning of the project
41 period or no earlier than January 1, 2005, whichever is
42 larger; and
43 2. Maintaining net increased employment in Idaho required by
44 subparagraph (ii)1. of this paragraph (j) during the remainder
45 of the project period.
46 (k) "Taxpayer," for purposes of paragraphs (j) and (e) of this subsection
47 (2), means either:
48 (i) A single taxpayer; or
49 (ii) In the context of a unitary group filing a combined report
50 under section 63-3027(t), Idaho Code, all members of a unitary group
51 includable in a combined report for the tax years in which the credit
52 provided for by this chapter may be claimed.
53 For all other purposes, the terms of section 63-3009, Idaho Code, and sec-
54 tion 63-3027(t)(1), Idaho Code, apply to the meaning of "taxpayer."
4
1 63-2903. ADDITIONAL INCOME TAX CREDIT FOR CAPITAL INVESTMENT. (1) For
2 taxable years beginning on or after January 1, 2005, and before December 31,
3 2009, and subject to the limitations of this chapter, a taxpayer who has cer-
4 tified that the tax incentive criteria will be met within a project site dur-
5 ing a project period shall, in regard to qualified investments made after the
6 beginning of the project period and before December 31, 2009, in lieu of the
7 investment tax credit provided in section 63-3029B, Idaho Code, be allowed a
8 nonrefundable credit against taxes imposed by sections 63-3024, 63-3025 and
9 63-3025A, Idaho Code, in the amount of six percent (6%) of the amount of qual-
10 ified investment made during a taxable year, wherever located within this
11 state.
12 (2) The credit allowed by this section shall not be subject to the fifty
13 percent (50%) limitation provided in section 63-3029B, Idaho Code.
14 (3) The credit allowed by this section shall not exceed five million dol-
15 lars ($5,000,000) in any one (1) taxable year.
16 63-2904. REAL PROPERTY IMPROVEMENT TAX CREDIT. (1) For taxable years
17 beginning on or after January 1, 2005, and before December 31, 2009, subject
18 to the limitations of this chapter, a taxpayer who has certified that the tax
19 incentive criteria will be met within a project site during a project period
20 shall be allowed a nonrefundable credit against taxes imposed by sections
21 63-3024, 63-3025 and 63-3025A, Idaho Code, in the amount of ten percent (10%)
22 of the investment in new plant which is incurred during the project period
23 applicable to the project site in which the investment is made.
24 (2) The credit allowed by this section shall not exceed five hundred
25 thousand dollars ($500,000) in any one (1) taxable year.
26 (3) No credit is allowable under this section for a qualified investment
27 in regard to which a credit under section 63-2903, Idaho Code, is available.
28 (4) The credit allowed by this section is limited to buildings and struc-
29 tural components of buildings related to headquarters or administrative facil-
30 ities.
31 63-2905. ADDITIONAL INCOME TAX CREDIT FOR NEW JOBS. (1) Subject to the
32 limitations of this chapter, for taxable years beginning on or after January
33 1, 2005, and before December 31, 2009, a taxpayer who has certified that the
34 tax incentive criteria will be met within a project site during a project
35 period shall, for the number of new employees earning more than a rate of
36 twenty-four dollars and four cents ($24.04) per hour worked, in lieu of the
37 credit amount in subsection (2)(a) of section 63-3029F, Idaho Code, be allowed
38 the credit provided by this section. The number of new employees is the
39 increase in the number of employees for the current taxable year over the
40 greater of the following:
41 (a) The number of employees for the prior taxable year; or
42 (b) The average of the number of employees for the three (3) prior tax-
43 able years.
44 (2) The credit provided by this section shall be:
45 (a) One thousand five hundred dollars ($1,500) for each new employee
46 whose annual salary during the taxable year for which the credit is earned
47 is greater than twenty-four dollars and four cents ($24.04) per hour
48 worked but equal to or less than an average rate of twenty-eight dollars
49 and eighty-five cents ($28.85) per hour worked;
50 (b) Two thousand dollars ($2,000) for each new employee whose annual sal-
51 ary during the taxable year for which the credit is earned is greater than
52 an average rate of twenty-eight dollars and eighty-five cents ($28.85) per
53 hour worked but equal to or less than an average rate of thirty-six dol-
5
1 lars and six cents ($36.06) per hour worked;
2 (c) Two thousand five hundred dollars ($2,500) for each new employee
3 whose annual salary during the taxable year for which the credit is earned
4 is greater than an average rate of thirty-six dollars and six cents
5 ($36.06) per hour worked but equal to or less than an average rate of for-
6 ty-three dollars and twenty-seven cents ($43.27);
7 (d) Three thousand dollars ($3,000) for each new employee whose annual
8 salary during the taxable year for which the credit is earned is greater
9 than an average rate of forty-three dollars and twenty-seven cents
10 ($43.27) per hour worked.
11 (3) The credit allowed by subsection (1) of this section shall apply only
12 to employment primarily within the project site. No credit shall be earned
13 unless such employee shall have performed such duties for the taxpayer for a
14 minimum of nine (9) months during the taxable year for which the credit is
15 claimed.
16 (4) The credit allowed by this section shall not be subject to the fifty
17 percent (50%) limitation provided in section 63-3029F, Idaho Code.
18 (5) Employees transferred from a related taxpayer or acquired from
19 another taxpayer within the prior twelve (12) months shall not be included in
20 the computation of the credit unless the transfer creates a net new job in
21 Idaho.
22 63-2906. LIMITATIONS, AND OTHER PROVISIONS ON CREDITS AGAINST INCOME
23 TAXES. (1) In addition to other needed rules, the state tax commission may
24 promulgate rules prescribing:
25 (a) In the case of S corporations, partnerships, trusts or estates, a
26 method of attributing a credit under this chapter to the shareholders,
27 partners or beneficiaries in proportion to their share of the income from
28 the S corporation, partnership, trust or estate; and
29 (b) The method by which the carryover of credits and the duty to recap-
30 ture credits shall survive and be transferred in the event of reorganiza-
31 tions, mergers or liquidations.
32 (2) In the case of a unitary group of corporations filing a combined
33 report under subsection (t) of section 63-3027, Idaho Code, credits against
34 income tax provided by sections 63-2903, 63-2904 and 63-2905, Idaho Code,
35 earned by one (1) member of the group but not used by that member may be used
36 by another member of the group, subject to the limitation in subsection (3) of
37 this section, instead of carried over. For a combined group of corporations,
38 credit carried forward may be claimed by any member of the group unless the
39 member or members who earned the credit are no longer included in the combined
40 group.
41 (3) The total of all credits allowed by sections 63-2903, 63-2904 and
42 63-2905, Idaho Code, together with any credits carried forward under subsec-
43 tion (4) of this section shall not exceed the amount of tax due under sections
44 63-3024, 63-3025 and 63-3025A, Idaho Code, after allowance for all other cre-
45 dits permitted by this chapter and the Idaho income tax act.
46 (4) If the credits exceed the limitation under subsection (3) of this
47 section, the excess amount may be carried forward for a period that does not
48 exceed:
49 (a) The next fourteen (14) taxable years in the case of credits allowed
50 by sections 63-2903 and 63-2904, Idaho Code; or
51 (b) The next ten (10) taxable years in the case of credits allowed by
52 section 63-2905, Idaho Code.
53 63-2907. RECAPTURE. (1) Any credit allowed by section 63-2903, 63-2904 or
6
1 63-2905, Idaho Code, shall be subject to recapture by the commission.
2 (a) One hundred percent (100%) of all credits taken shall be recaptured
3 in the event that any person to whom a tax credit was allowed fails to
4 meet the tax incentive criteria or fails to maintain the tax incentive
5 criteria for the entire recapture period.
6 (b) One hundred percent (100%) of the credit applicable to an investment
7 or new employee shall be recaptured if before the close of the recapture
8 period:
9 (i) An investment in new plant in regard to which credits allowed
10 under section 63-2903 or 63-2904, Idaho Code, have been taken, is
11 disposed of, or otherwise ceases to qualify; or
12 (ii) An employee in regard to whom a credit allowed under section
13 63-2905, Idaho Code, has been taken no longer receives an annual sal-
14 ary during a taxable year of twenty-four dollars and four cents
15 ($24.04) per hour worked or is no longer employed at the project site
16 by the taxpayer.
17 (2) The recapture provisions of subsection (1)(b) of this section shall
18 not apply if the provisions of subsection (1)(a) of this section apply.
19 (3) This section shall not be construed to require that the required
20 level of employment must be met by the same individual employees.
21 (4) Any amount subject to recapture is a deficiency in tax for the amount
22 of the credit in the taxable year in which the credit was allowed and may be
23 enforced and collected in the manner provided by the Idaho income tax act,
24 provided however, that in lieu of the provisions of section 63-3068(a), Idaho
25 Code, the period of time within which the commission may issue a notice under
26 section 63-3045, Idaho Code, in regard to an amount subject to recapture shall
27 be the later of five (5) years after the end of the taxable year in which the
28 project period ends or three (3) years after the end of the taxable year in
29 which any amounts carried forward under section 63-2906, Idaho Code, expire.
30 63-2908. SALES AND USE TAX INCENTIVES -- REBATES -- RECAPTURE. (1) For
31 calendar years beginning on or after January 1, 2005, and before December 31,
32 2009, subject to the limitations of this chapter, a taxpayer who has certified
33 that the tax incentive criteria will be met within the project site shall be
34 entitled to receive a rebate of all sales and use taxes imposed by chapter 36,
35 title 63, Idaho Code, and that the taxpayer or its contractors actually paid
36 in regard to any property constructed, located or installed within the project
37 site during the project period for that site.
38 (2) The rebate allowed by this section is limited to sales and use taxes
39 actually paid by the taxpayer or its contractors for taxable property related
40 to headquarters or administrative facilities.
41 (3) Upon filing of a written refund claim by the taxpayer entitled to the
42 rebate, and subject to such reasonable documentation and verification as the
43 commission may require, the rebate shall be paid by the commission as a refund
44 allowable under section 63-3626, Idaho Code. A claim for rebate under this
45 section must be filed on or before the last day of the third calendar year
46 following the year in which the taxes sought to be rebated were paid or the
47 right to the rebate is lost.
48 (4) Any rebate allowed by this section shall be subject to recapture by
49 the commission.
50 (a) One hundred percent (100%) of all rebates taken shall be recaptured
51 in the event that any person to whom a rebate was allowed fails to meet
52 the tax incentive criteria or fails to maintain the tax incentive criteria
53 for the entire recapture period.
54 (b) One hundred percent (100%) of the rebate applicable to specific prop-
7
1 erty shall be recaptured if, before the close of the recapture period, the
2 property in regard to which rebate was allowed under this section, is dis-
3 posed of, or otherwise ceases to qualify.
4 (c) The recapture provisions of subsection (4)(b) of this section shall
5 not apply if the provisions of subsection (4)(a) of this section apply.
6 (5) Any recapture amount due under this section shall be a deficiency in
7 tax for purposes of section 63-3629, Idaho Code, for the period in which the
8 rebate was paid and may be enforced and collected in the manner provided by
9 the Idaho sales tax act, provided however, that in lieu of the provisions of
10 section 63-3633, Idaho Code, the period of time within which the commission
11 may issue a notice under section 63-3629, Idaho Code, in regard to an amount
12 subject to recapture, shall be five (5) years after the end of the taxable
13 year, for income tax purposes, in which the project period ends.
14 63-2909. PROPERTY TAX INCENTIVES -- REBATES -- RECAPTURE. (1) Subject to
15 the limitations of this chapter, both improvements to real property that are
16 headquarters and administrative facilities and personal property related to
17 such facilities which are newly constructed, including construction in prog-
18 ress during the year, or acquired during a project period and located in the
19 project site and owned by a taxpayer who has certified that the tax incentive
20 criteria will be met in regard to that site, shall be entitled to receive a
21 rebate of all property taxes the taxpayer actually paid for any of the years
22 2005 through 2012 that are properly levied upon any property constructed or
23 installed within the project site during the project period for that site.
24 Property upon which tax is rebated by this section, which is included on the
25 new construction roll provided in section 63-301A, Idaho Code, shall be sepa-
26 rately identified on that roll.
27 (2) The rebate allowed by this section is limited to the lesser of:
28 (a) Property taxes actually paid by the taxpayer for taxable property
29 related to headquarters or administrative facilities;
30 (b) Two million dollars ($2,000,000) of property tax paid for any calen-
31 dar year; or
32 (c) In the event that a project site consists of more than one (1) area,
33 the amount of property tax paid on administrative and headquarters facili-
34 ties located in the area in which the eighty percent (80%) investment
35 required by subsection (2)(g)(ii) of section 63-2902, Idaho Code, is
36 located.
37 (3) Upon filing of a written claim by the taxpayer entitled to the
38 rebate, which shall include a description of the property upon which the tax
39 sought to be rebated was levied, the property's assessed value for property
40 tax purposes, and its location and subject to such reasonable documentation
41 and verification as the commission may require, the rebate shall be paid by
42 the commission as provided in section 63-3067, Idaho Code. A claim for rebate
43 under this section must be filed on or before the last day of the third calen-
44 dar year following the year of the property taxes sought to be rebated or the
45 right to the rebate is lost.
46 (4) Any rebate allowed by this section shall be subject to recapture by
47 the commission.
48 (a) One hundred percent (100%) of all rebates taken shall be recaptured
49 in the event that any person to whom a rebate was allowed fails to meet
50 the tax incentive criteria or fails to maintain the tax incentive criteria
51 for the entire recapture period.
52 (b) One hundred percent (100%) of the rebate applicable to specific prop-
53 erty shall be recaptured if, before the close of the recapture period, the
54 property in regard to which rebate was allowed under this section, is dis-
8
1 posed of, or otherwise ceases to qualify.
2 (c) The recapture provisions of subsection (4)(b) of this section shall
3 not apply if the provisions of subsection (4)(a) of this section apply.
4 (5) Any amount subject to recapture is a deficiency in tax for the amount
5 of the rebate in the taxable year in which the exemption was allowed and may
6 be enforced and collected in the manner provided by the Idaho income tax act,
7 provided however, that in lieu of the provisions of section 63-3068(a), Idaho
8 Code, the period of time within which the commission may issue a notice under
9 section 63-3045, Idaho Code, in regard to an amount subject to recapture shall
10 be five (5) years after the end of the taxable year in which the project
11 period ends.
12 63-2910. ADMINISTRATION. The commission shall enforce the provisions of
13 this chapter and may prescribe, adopt, and enforce reasonable rules relating
14 to the administration and enforcement of those provisions, including the pro-
15 mulgation of rules relating to information necessary to certify that the
16 incentive criteria have been or will be met. For the purpose of carrying out
17 its duties to enforce or administer the provisions of this chapter, the com-
18 mission shall have the powers and duties provided by sections 63-3038,
19 63-3039, 63-3042 through 63-3067, 63-3068, 63-3071, 63-3074 through 63-3078
20 and 63-217, Idaho Code.
21 SECTION 2. That Section 63-3067, Idaho Code, be, and the same is hereby
22 amended to read as follows:
23 63-3067. REVENUE RECEIVED -- STATE REFUND ACCOUNT. (1) A sum equal to the
24 amount withheld under section 63-3035A, Idaho Code, shall be distributed fifty
25 percent (50% ) to the public school income fund to be utilized to facilitate
26 and provide substance abuse programs in the public school system, and fifty
27 percent (50% ) shall be distributed to the counties to be utilized for county
28 juvenile probation services. These funds shall be distributed quarterly to the
29 counties based upon the percentage the population of the county bears to the
30 population of the state as a whole.
31 (2) All moneys except as provided in subsection (1) of this section, and
32 except as hereinafter provided, received by the state of Idaho under this act
33 shall be deposited by the state tax commission, as received by it, with the
34 state treasurer and shall be placed in and become a part of the general
35 account under the custody of the state treasurer. Providing however,
36 (a) that an amount equal to twenty percent (20%) of the amount deposited
37 with the state treasurer shall be placed in the "state refund account"
38 which is hereby created for the purpose of repaying overpayments, for the
39 purpose of remitting to counties and taxing districts for personal prop-
40 erty exempt from taxation pursuant to section 63- 602EE, Idaho Code, as
41 provided in subsection (3) of this section, for the purpose of depositing
42 in the trust accounts specified in section 63-3067A, Idaho Code, such
43 amounts as may be designated by individuals for the purpose of depositing
44 in the Idaho ag in the classroom account an amount as may be designated by
45 the individual receiving a refund for such overpayment, and for the pur-
46 pose of paying any other erroneous receipts illegally assessed or col-
47 lected, penalties collected without authority and taxes and licenses
48 unjustly assessed, collected or which are excessive in amount. Whenever
49 necessary for the purpose of making prompt payment of refunds, the board
50 of examiners, upon request from the state tax commission, and after
51 review, may authorize the state tax commission to transfer any additional
52 specific amount from income tax collections to the "state refund account."
9
1 There is appropriated out of the state refund account so much thereof as
2 may be necessary for the payment of the refunds herein provided. Claims
3 for, and payment of refunds under the provisions of this section shall be
4 made in the same manner as other claims against the state of Idaho; and
5 (b) an amount equal to any amount required to be rebated under section
6 63-2909, Idaho Code, is continuously appropriated for the purpose of pay-
7 ing any such rebate.
8 (3) Any unencumbered balance remaining in the state refund account on
9 June 30 of each and every year in excess of the sum of one million five hun-
10 dred thousand dollars ($1,500,000) shall be transferred to the general fund
11 and the state controller is hereby authorized and directed on such dates to
12 make such transfers unless the board of examiners, which is hereby authorized
13 to do so, changes the date of transfer or sum to be transferred.
14 SECTION 3. An emergency existing therefor, which emergency is hereby
15 declared to exist, this act shall be in full force and effect on and after its
16 passage and approval, and retroactively to January 1, 2005.
STATEMENT OF PURPOSE
R.S.14825
This bill is "The Idaho Corporate Headquarters Incentive Act of
2005." It provides qualifying businesses with:
Income tax credits:
o A six percent investment tax credit with no credit limitation.
o An additional new jobs tax credit with a graduated scale starting
at $1,000 per job and climbing to $3,000 per job.
o A ten percent real property improvement tax credit for investment
in headquarters and administrative buildings of up to $500,000 in
any one year.
A temporary property tax abatement for new headquarters and
administrative buildings of up to $2 million in any year. The state,
not local governments, pays the abatement.
A temporary sales tax abatement for materials used in new headquarters
and administrative buildings.
To qualify a company must:
o Create at least 500 new jobs in Idaho;
o Jobs must have a starting annual salary of at least $50,000 per
year, plus benefits;
o Invest at least $50 million in new headquarters and
administrative buildings; and
o Accomplish this within a five-year period.
If a taxpayer fails to maintain these criteria, the state will
recapture all of the tax benefits.
FISCAL NOTE
Impact on General Fund
For Fiscal Year 2006- New New New Net
New Employees New Rev. Local State Costs Impact
If 500 $ 5.4 mil $ 1.5 mil $3.9 mil $ 2.0 mil $ 1.9 mil
If 1,000 $ 7.3 mil $ 2.2 mil $5.2 mil $ 2.0 mil $ 3.2 mil
If 1,500 $ 9.3 mil $ 2.8 mil $6.5 mil $ 2.0 mil $ 4.5 mil
If 2,000 $11.2 mil $ 3.4 mil $7.8 mil $ 2.0 mil $ 5.8 mil
Impact on General Fund
For Life of Tax Credits- New New New Net
New Employees New Rev. Local State Costs Impact
If 500 $ 63.8 mil $33.3 mil $30.6 mil $26.4 mil $ 4.2 mil
If 1,000 $103.4 mil $50.5 mil $52.8 mil $27.5 mil $25.4 mil
If 1,500 $142.9 mil $67.8 mil $75.1 mil $28.4 mil $46.7 mil
If 2,000 $182.4 mil $85.1 mil $97.4 mil $29.4 mil $68.0 mil
Contact
Name: Brian Whitlock
Agency: Office of the Governor
Phone: 334-2100
STATEMENT OF PURPOSE/FISCAL NOTE H 142