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H0216...............................................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 tax incentive criteria; 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 tax incentive criteria; 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 tax incentive criteria; 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.
02/14 House intro - 1st rdg - to printing
02/15 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. 216
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 TAX
15 INCENTIVE CRITERIA, TO PROVIDE FOR A REBATE OF SALES AND USE TAXES PAID ON
16 QUALIFIED PROJECTS AND TO PROVIDE FOR RECAPTURE OF REFUND IN CASE OF FAIL-
17 URE TO MEET TAX INCENTIVE CRITERIA, TO PROVIDE FOR A REBATE OF CERTAIN
18 PROPERTY TAXES PAID ON QUALIFIED PROJECTS AND TO PROVIDE LIMITATIONS
19 THEREON, TO PROVIDE FOR RECAPTURE OF THE REBATE IN CASE OF FAILURE TO MEET
20 TAX INCENTIVE CRITERIA AND TO PROVIDE FOR ADMINISTRATION BY THE STATE TAX
21 COMMISSION; AMENDING SECTION 63-3067, IDAHO CODE, TO PROVIDE A CONTINUOUS
22 APPROPRIATION OF INCOME TAX RECEIPTS TO FUND CERTAIN PROPERTY TAX REBATES;
23 DECLARING AN EMERGENCY AND PROVIDING A RETROACTIVE EFFECTIVE DATE.
24 Be It Enacted By the Legislature of the State of Idaho:
25 SECTION 1. That Title 63, Idaho Code, be, and the same is hereby amended
26 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
27 ter 29, Title 63, Idaho Code, and to read as follows:
28 CHAPTER 29
29 THE IDAHO CORPORATE HEADQUARTERS INCENTIVE ACT OF 2005
30 63-2901. SHORT TITLE. This chapter shall be known and may be cited as
31 "The Idaho Corporate Headquarters Incentive Act of 2005."
32 63-2902. DEFINITIONS. (1) The definitions contained in the Idaho income
33 tax act, shall apply to this chapter unless modified in this chapter or unless
34 the context clearly requires another definition.
35 (2) As used in this chapter:
36 (a) "Commission" means the Idaho state tax commission.
37 (b) "Headquarters or administrative facilities" means facility or facili-
38 ties, including related parking facilities, where corporate staff employ-
39 ees are physically employed, and where the majority of the company's ser-
40 vices are handled either on a regional or national basis. Company services
41 may include: accounts receivable and payable, accounting, data processing,
2
1 distribution management, employee benefit plan, financial and securities
2 accounting, information technology, insurance, legal, merchandising, pay-
3 roll, personnel, purchasing/procurement, planning, reporting and compli-
4 ance, tax, treasury, or other headquarters-related services.
5 (c) "Idaho income tax act" means chapter 30, title 63, Idaho Code.
6 (d) "Investment in new plant" means investment in headquarters or admin-
7 istrative facilities, that are:
8 (i) Qualified investments; or
9 (ii) Buildings or structural components of buildings.
10 (e) "New employee":
11 (i) Means an individual, employed primarily within the project site
12 by the taxpayer, subject to Idaho income tax withholding whether or
13 not any amounts are required to be withheld, covered for unemployment
14 insurance purposes under chapter 13, title 72, Idaho Code, and who
15 was eligible to receive employer provided coverage under an accident
16 or health plan described in section 105 of the Internal Revenue Code
17 during the taxable year. A person shall be deemed to be so employed
18 if such person performs duties on:
19 1. A regular full-time basis; or
20 2. A part-time basis if such person is customarily performing
21 such duties at least twenty (20) hours per week.
22 (ii) The number of employees employed primarily within the project
23 site by the taxpayer, during any taxable year for a taxpayer shall be
24 the mathematical average of the number of such employees reported to
25 the Idaho department of commerce and labor for employment security
26 purposes during the twelve (12) months of the taxable year which
27 qualified under paragraph (e)(i) of this subsection (2). In the event
28 the business is in operation for less than the entire taxable year,
29 the number of employees of the taxpayer for the year shall be the
30 average number actually employed during the months of operation, pro-
31 vided that the qualifications of paragraph (e)(i) of this subsection
32 (2) are met.
33 (iii) Employees transferred from a related taxpayer or acquired as
34 part of the acquisition of a trade or business from another taxpayer
35 within the prior twelve (12) months are not included in this defini-
36 tion unless the transfer creates a net new job in Idaho.
37 (f) "Project period" means the period of time beginning at the earlier of
38 a physical change to the project site or the first employment of new
39 employees located in Idaho who are related to the activities at the proj-
40 ect site, but no earlier than January 1, 2005, and ending when the facili-
41 ties constituting the project are placed in service, but no later than
42 December 31, 2009.
43 (g) "Project site" means an area or areas at which headquarters and head-
44 quarters facilities are located and at which the tax incentive criteria
45 have been or will be met and which are either:
46 (i) A single geographic area located in this state at which the
47 headquarters or administrative facilities owned or leased by the tax-
48 payer are located; or
49 (ii) One (1) or more geographic areas located in this state if
50 eighty percent (80%) or more of the investment required by subsection
51 (2)(j)(i) of this section is made at one (1) of the areas.
52 (iii) The project site must be identified and described to the com-
53 mission by a taxpayer subject to tax under the Idaho income tax act,
54 in the form and manner prescribed by the commission.
55 (h) "Qualified investment" shall be defined as in section 63-3029B, Idaho
3
1 Code.
2 (i) "Recapture period" means:
3 (i) In the case of credits described in sections 63-2903 and
4 63-2904, Idaho Code, the same period for which a recapture of invest-
5 ment tax credit under section 63-3029B, Idaho Code, is required; or
6 (ii) In the case of credits described in section 63-2905, Idaho
7 Code, five (5) years from the date the project period ends.
8 (j) "Tax incentive criteria" means a taxpayer meeting at a project site
9 the requirements of both subparagraphs (i) and (ii) of this paragraph (j).
10 (i) During the project period, making capital investments in new
11 plant of at least fifty million dollars ($50,000,000) at the project
12 site.
13 (ii) During a period of time beginning on January 1, 2005, and end-
14 ing at the conclusion of the project period:
15 1. Increasing employment at the project site by at least five
16 hundred (500) new employees:
17 (A) Each of whom must earn at least twenty-four dollars
18 and four cents ($24.04) per hour worked during the
19 taxpayer's taxable year; or
20 (B) Each of whom is part of a group of five hundred (500)
21 or more employees at the project site which group on aver-
22 age earns at least twenty-eight dollars and eighty-five
23 cents ($28.85) per hour worked during the taxpayer's tax-
24 able year. Calculation of the group average earnings may
25 not include amounts paid to any employee earning more than
26 one hundred twenty dollars and nineteen cents ($120.19) per
27 hour worked during the taxpayer's taxable year.
28 (C) Earnings calculated pursuant to subparagraph (ii) of
29 this paragraph (j) shall include income upon which Idaho
30 income tax withholding is required under section 63-3035,
31 Idaho Code, but shall not include income such as stock
32 options or restricted stock grants.
33 (D) For purposes of determining whether the increased
34 employment threshold has been met, employment at the proj-
35 ect site shall be determined by calculating the increase of
36 such new employees reported to the Idaho department of com-
37 merce and labor for employment security purposes over the
38 employees so reported as of the beginning of the project
39 period or no earlier than January 1, 2005, whichever is
40 larger; and
41 2. Maintaining net increased employment in Idaho required by
42 subparagraph (ii)1. of this paragraph (j) during the remainder
43 of the project period.
44 (k) "Taxpayer," for purposes of paragraphs (j) and (e) of this subsection
45 (2), means either:
46 (i) A single taxpayer; or
47 (ii) In the context of a unitary group filing a combined report
48 under section 63-3027(t), Idaho Code, all members of a unitary group
49 includable in a combined report for the tax years in which the credit
50 provided for by this chapter may be claimed.
51 For all other purposes, the terms of section 63-3009, Idaho Code, and sec-
52 tion 63-3027(t)(1), Idaho Code, apply to the meaning of "taxpayer."
53 63-2903. ADDITIONAL INCOME TAX CREDIT FOR CAPITAL INVESTMENT. (1) For
54 taxable years beginning on or after January 1, 2005, and before December 31,
4
1 2009, and subject to the limitations of this chapter, a taxpayer who has cer-
2 tified that the tax incentive criteria will be met within a project site dur-
3 ing a project period shall, in regard to qualified investments made after the
4 beginning of the project period and before December 31, 2009, in lieu of the
5 investment tax credit provided in section 63-3029B, Idaho Code, be allowed a
6 nonrefundable credit against taxes imposed by sections 63-3024, 63-3025 and
7 63-3025A, Idaho Code, in the amount of six percent (6%) of the amount of qual-
8 ified investment made during a taxable year, wherever located within this
9 state.
10 (2) The credit allowed by this section shall not be subject to the fifty
11 percent (50%) limitation provided in section 63-3029B, Idaho Code.
12 (3) The credit allowed by this section shall not exceed five million dol-
13 lars ($5,000,000) in any one (1) taxable year.
14 63-2904. REAL PROPERTY IMPROVEMENT TAX CREDIT. (1) For taxable years
15 beginning on or after January 1, 2005, and before December 31, 2009, subject
16 to the limitations of this chapter, a taxpayer who has certified that the tax
17 incentive criteria will be met within a project site during a project period
18 shall be allowed a nonrefundable credit against taxes imposed by sections
19 63-3024, 63-3025 and 63-3025A, Idaho Code, in the amount of ten percent (10%)
20 of the investment in new plant which is incurred during the project period
21 applicable to the project site in which the investment is made.
22 (2) The credit allowed by this section shall not exceed five hundred
23 thousand dollars ($500,000) in any one (1) taxable year.
24 (3) No credit is allowable under this section for a qualified investment
25 in regard to which a credit under section 63-2903, Idaho Code, is available.
26 (4) The credit allowed by this section is limited to buildings and struc-
27 tural components of buildings related to headquarters or administrative facil-
28 ities.
29 63-2905. ADDITIONAL INCOME TAX CREDIT FOR NEW JOBS. (1) Subject to the
30 limitations of this chapter, for taxable years beginning on or after January
31 1, 2005, and before December 31, 2009, a taxpayer who has certified that the
32 tax incentive criteria will be met within a project site during a project
33 period shall, for the number of new employees earning more than a rate of
34 twenty-four dollars and four cents ($24.04) per hour worked, in lieu of the
35 credit amount in subsection (2)(a) of section 63-3029F, Idaho Code, be allowed
36 the credit provided by this section. The number of new employees is the
37 increase in the number of employees for the current taxable year over the
38 greater of the following:
39 (a) The number of employees for the prior taxable year; or
40 (b) The average of the number of employees for the three (3) prior tax-
41 able years.
42 (2) The credit provided by this section shall be:
43 (a) One thousand five hundred dollars ($1,500) for each new employee
44 whose annual salary during the taxable year for which the credit is earned
45 is greater than twenty-four dollars and four cents ($24.04) per hour
46 worked but equal to or less than an average rate of twenty-eight dollars
47 and eighty-five cents ($28.85) per hour worked;
48 (b) Two thousand dollars ($2,000) for each new employee whose annual sal-
49 ary during the taxable year for which the credit is earned is greater than
50 an average rate of twenty-eight dollars and eighty-five cents ($28.85) per
51 hour worked but equal to or less than an average rate of thirty-six dol-
52 lars and six cents ($36.06) per hour worked;
53 (c) Two thousand five hundred dollars ($2,500) for each new employee
5
1 whose annual salary during the taxable year for which the credit is earned
2 is greater than an average rate of thirty-six dollars and six cents
3 ($36.06) per hour worked but equal to or less than an average rate of for-
4 ty-three dollars and twenty-seven cents ($43.27);
5 (d) Three thousand dollars ($3,000) for each new employee whose annual
6 salary during the taxable year for which the credit is earned is greater
7 than an average rate of forty-three dollars and twenty-seven cents
8 ($43.27) per hour worked.
9 (3) The credit allowed by subsection (1) of this section shall apply only
10 to employment primarily within the project site. No credit shall be earned
11 unless such employee shall have performed such duties for the taxpayer for a
12 minimum of nine (9) months during the taxable year for which the credit is
13 claimed.
14 (4) The credit allowed by this section shall not be subject to the fifty
15 percent (50%) limitation provided in section 63-3029F, Idaho Code.
16 (5) Employees transferred from a related taxpayer or acquired from
17 another taxpayer within the prior twelve (12) months shall not be included in
18 the computation of the credit unless the transfer creates a net new job in
19 Idaho.
20 63-2906. LIMITATIONS, AND OTHER PROVISIONS ON CREDITS AGAINST INCOME
21 TAXES. (1) In addition to other needed rules, the state tax commission may
22 promulgate rules prescribing:
23 (a) In the case of S corporations, partnerships, trusts or estates, a
24 method of attributing a credit under this chapter to the shareholders,
25 partners or beneficiaries in proportion to their share of the income from
26 the S corporation, partnership, trust or estate; and
27 (b) The method by which the carryover of credits and the duty to recap-
28 ture credits shall survive and be transferred in the event of reorganiza-
29 tions, mergers or liquidations.
30 (2) In the case of a unitary group of corporations filing a combined
31 report under subsection (t) of section 63-3027, Idaho Code, credits against
32 income tax provided by sections 63-2903, 63-2904 and 63-2905, Idaho Code,
33 earned by one (1) member of the group but not used by that member may be used
34 by another member of the group, subject to the limitation in subsection (3) of
35 this section, instead of carried over. For a combined group of corporations,
36 credit carried forward may be claimed by any member of the group unless the
37 member or members who earned the credit are no longer included in the combined
38 group.
39 (3) The total of all credits allowed by sections 63-2903, 63-2904 and
40 63-2905, Idaho Code, together with any credits carried forward under subsec-
41 tion (4) of this section shall not exceed the amount of tax due under sections
42 63-3024, 63-3025 and 63-3025A, Idaho Code, after allowance for all other cre-
43 dits permitted by this chapter and the Idaho income tax act.
44 (4) If the credits exceed the limitation under subsection (3) of this
45 section, the excess amount may be carried forward for a period that does not
46 exceed:
47 (a) The next fourteen (14) taxable years in the case of credits allowed
48 by sections 63-2903 and 63-2904, Idaho Code; or
49 (b) The next ten (10) taxable years in the case of credits allowed by
50 section 63-2905, Idaho Code.
51 63-2907. RECAPTURE. (1) In the event that any person to whom a tax credit
52 allowed by section 63-2903, 63-2904 or 63-2905, Idaho Code, fails to meet the
53 tax incentive criteria, the full amount of the credit shall be subject to
6
1 recapture by the commission.
2 (2) If, during any taxable year, an investment in new plant is disposed
3 of, or otherwise ceases to qualify with respect to the taxpayer, prior to the
4 close of the recapture period, recapture of the credit allowed by sections
5 63-2903 and 63-2904, Idaho Code, shall be determined for such taxable year in
6 the same proportion and subject to the same provisions as an amount of credit
7 required to be recaptured under section 63-3029B, Idaho Code.
8 (3) In the event that the employment required in section 63-2902(2)(j),
9 Idaho Code, is not maintained for the entire recapture period, recapture of
10 the credit allowed in section 63-2905, Idaho Code, shall be determined for
11 such taxable year in the same proportion as an amount of credit required to be
12 recaptured under section 63-3029B, Idaho Code. This subsection shall not be
13 construed to require that the required level of employment must be met by the
14 same individual employees.
15 (4) Any amount subject to recapture is a deficiency in tax for the amount
16 of the credit in the taxable year in which the disqualification first occurs
17 and may be enforced and collected in the manner provided by the Idaho income
18 tax act, provided however, that in lieu of the provisions of section
19 63-3068(a), Idaho Code, the period of time within which the commission may
20 issue a notice under section 63-3045, Idaho Code, in regard to an amount sub-
21 ject to recapture shall be the later of five (5) years after the end of the
22 taxable year in which the project period ends or three (3) years after the end
23 of the taxable year in which any amounts carried forward under section
24 63-2906, Idaho Code, expire.
25 63-2908. SALES AND USE TAX INCENTIVES -- REBATES -- RECAPTURE. (1) For
26 calendar years beginning on January 1, 2005, and ending on December 31, 2009,
27 subject to the limitations of this chapter, a taxpayer who has certified that
28 the tax incentive criteria will be met within the project site shall be enti-
29 tled to receive a rebate of all sales and use taxes imposed by chapter 36,
30 title 63, Idaho Code, and that the taxpayer or its contractors actually paid
31 in regard to any property constructed, located or installed within the project
32 site during the project period for that site.
33 (2) Upon filing of a written refund claim by the taxpayer entitled to the
34 rebate, and subject to such reasonable documentation and verification as the
35 commission may require, the rebate shall be paid by the commission as a refund
36 allowable under section 63-3626, Idaho Code. A claim for rebate under this
37 section must be filed on or before the last day of the third calendar year
38 following the year in which the taxes sought to be rebated were paid or the
39 right to the rebate is lost.
40 (3) Any rebate paid shall be subject to recapture by the commission:
41 (a) At one hundred percent (100%) in the event that the tax incentive
42 criteria are not met at the project site during the project period, or
43 (b) In the event that the property is not used, stored or otherwise con-
44 sumed within the project site for a period of sixty (60) consecutive full
45 months after the property was placed in service, or
46 (c) In the event that the employment required in section 63-2902(2)(j),
47 Idaho Code, is not maintained for sixty (60) consecutive full months from
48 the date the project period ends.
49 (d) Any recapture required by subsection (3)(b) or (3)(c) of this section
50 shall be in the same proportion as an amount of credit required to be
51 recaptured under section 63-3029B, Idaho Code.
52 (4) Any recapture amount due under this section shall be a deficiency in
53 tax for the period in which the disqualification first occurs for purposes of
54 section 63-3629, Idaho Code, and may be enforced and collected in the manner
7
1 provided by the Idaho sales tax act, provided however, that in lieu of the
2 provisions of section 63-3633, Idaho Code, the period of time within which the
3 commission may issue a notice under section 63-3629, Idaho Code, in regard to
4 an amount subject to recapture, shall be the later of five (5) years after the
5 end of the taxable year, for income tax purposes, in which the project period
6 ends.
7 (5) The rebate allowed by this section is limited to sales and use taxes
8 actually paid by the taxpayer or its contractors for taxable property related
9 to headquarters or administrative facilities.
10 63-2909. PROPERTY TAX INCENTIVES. (1) Subject to the limitations of this
11 chapter, both improvements to real property and personal property which are
12 newly constructed, including construction in progress during the year, or
13 acquired during a project period and located in the project site and owned by
14 a taxpayer who has certified that the tax incentive criteria will be met in
15 regard to that site, shall be entitled to receive a rebate of the lesser of:
16 (a) All property taxes the taxpayer actually paid for any of the years
17 2005 through 2012 that are properly levied upon any property constructed
18 or installed within the project site during the project period for that
19 site; or
20 (b) All property tax the taxpayer actually paid for any of the years 2005
21 through 2012 that are properly levied upon any property constructed or
22 installed within the area described in subsection (2)(g)(ii) of section
23 63-2902, Idaho Code, within which eighty percent (80%) or more of the
24 investment required in subsection (2)(j)(i) of section 63-2902, Idaho
25 Code, is made during the project period for that site.
26 Property upon which tax is rebated by this section, which is included on the
27 new construction roll provided in section 63-301A, Idaho Code, shall be sepa-
28 rately identified on that roll.
29 (2) Upon filing of a written claim by the taxpayer entitled to the
30 rebate, which shall include a description of the property upon which the tax
31 sought to be rebated was levied, the property's assessed value for property
32 tax purposes, and its location and subject to such reasonable documentation
33 and verification as the commission may require, the rebate shall be paid by
34 the commission as provided in section 63-3067, Idaho Code. A claim for rebate
35 under this section must be filed on or before the last day of the third calen-
36 dar year following the year of the property taxes sought to be rebated or the
37 right to the rebate is lost.
38 (3) The taxpayer shall be subject to recapture of any rebate paid under
39 this section:
40 (a) At one hundred percent (100%) in the event that the tax incentive
41 criteria are not met at the project site during the project period, or
42 (b) In the event that the property is disposed of, or otherwise ceases to
43 qualify with respect to the taxpayer before five (5) full years from the
44 date the project period ends, or
45 (c) In the event that the employment required in section 63-2902(2)(j),
46 Idaho Code, is not maintained for sixty (60) consecutive full months from
47 the date the project period ends.
48 (d) Any recapture required by subsection (3)(b) or (3)(c) of this section
49 shall be in the same proportion of the credit required to be recaptured
50 under section 63-3029B, Idaho Code.
51 (e) Any amount subject to recapture is a deficiency in tax for the amount
52 of the rebate in the taxable year in which the disqualification first
53 occurs and may be enforced and collected in the manner provided by the
54 Idaho income tax act, provided however, that in lieu of the provisions of
8
1 section 63-3068(a), Idaho Code, the period of time within which the com-
2 mission may issue a notice under section 63-3045, Idaho Code, in regard to
3 an amount subject to recapture shall be five (5) years after the end of
4 the taxable year in which the project period ends.
5 (4) The rebate allowed by this section is limited to improvements to real
6 property and personal property which are newly constructed, including con-
7 struction in progress during the year, or acquired related to headquarters or
8 administrative facilities.
9 63-2910. ADMINISTRATION. The commission shall enforce the provisions of
10 this chapter and may prescribe, adopt, and enforce reasonable rules relating
11 to the administration and enforcement of those provisions, including the pro-
12 mulgation of rules relating to information necessary to certify that the
13 incentive criteria have been or will be met. For the purpose of carrying out
14 its duties to enforce or administer the provisions of this chapter, the com-
15 mission shall have the powers and duties provided by sections 63-3038,
16 63-3039, 63-3042 through 63-3067, 63-3068, 63-3071, 63-3074 through 63-3078
17 and 63-217, Idaho Code.
18 SECTION 2. That Section 63-3067, Idaho Code, be, and the same is hereby
19 amended to read as follows:
20 63-3067. REVENUE RECEIVED -- STATE REFUND ACCOUNT. (1) A sum equal to the
21 amount withheld under section 63-3035A, Idaho Code, shall be distributed fifty
22 percent (50%) to the public school income fund to be utilized to facilitate
23 and provide substance abuse programs in the public school system, and fifty
24 percent (50%) shall be distributed to the counties to be utilized for county
25 juvenile probation services. These funds shall be distributed quarterly to the
26 counties based upon the percentage the population of the county bears to the
27 population of the state as a whole.
28 (2) All moneys except as provided in subsection (1) of this section, and
29 except as hereinafter provided, received by the state of Idaho under this act
30 shall be deposited by the state tax commission, as received by it, with the
31 state treasurer and shall be placed in and become a part of the general
32 account under the custody of the state treasurer. Providing however,
33 (a) that an amount equal to twenty percent (20%) of the amount deposited
34 with the state treasurer shall be placed in the "state refund account"
35 which is hereby created for the purpose of repaying overpayments, for the
36 purpose of remitting to counties and taxing districts for personal prop-
37 erty exempt from taxation pursuant to section 63-602EE, Idaho Code, as
38 provided in subsection (3) of this section, for the purpose of depositing
39 in the trust accounts specified in section 63-3067A, Idaho Code, such
40 amounts as may be designated by individuals for the purpose of depositing
41 in the Idaho ag in the classroom account an amount as may be designated by
42 the individual receiving a refund for such overpayment, and for the pur-
43 pose of paying any other erroneous receipts illegally assessed or col-
44 lected, penalties collected without authority and taxes and licenses
45 unjustly assessed, collected or which are excessive in amount. Whenever
46 necessary for the purpose of making prompt payment of refunds, the board
47 of examiners, upon request from the state tax commission, and after
48 review, may authorize the state tax commission to transfer any additional
49 specific amount from income tax collections to the "state refund account."
50 There is appropriated out of the state refund account so much thereof as
51 may be necessary for the payment of the refunds herein provided. Claims
52 for, and payment of refunds under the provisions of this section shall be
9
1 made in the same manner as other claims against the state of Idaho; and
2 (b) an amount equal to any amount required to be rebated under section
3 63-2909, Idaho Code, is continuously appropriated for the purpose of pay-
4 ing any such rebate.
5 (3) Any unencumbered balance remaining in the state refund account on
6 June 30 of each and every year in excess of the sum of one million five hun-
7 dred thousand dollars ($1,500,000) shall be transferred to the general fund
8 and the state controller is hereby authorized and directed on such dates to
9 make such transfers unless the board of examiners, which is hereby authorized
10 to do so, changes the date of transfer or sum to be transferred.
11 SECTION 3. 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, 2005.
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STATEMENT OF PURPOSE
RS 14976C1
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.
Existing recapture provisions apply.
FISCAL NOTE
Impact on General Fund
For Fiscal Year 2006- New New New Net
New Employees New Rev. Local State Costs Impact
If 500 $ 4.2 mil $ 1.2 mil $ 3.1 mil $ 1.8 mil $ 1.3 mil
If 1,000 $ 6.2 mil $ 1.8 mil $ 4.4 mil $ 1.8 mil $ 2.5 mil
If 1,500 $ 8.1 mil $ 2.5 mil $ 5.6 mil $ 1.8 mil $ 3.8 mil
If 2,000 $10.1 mil $ 3.1 mil $ 6.9 mil $ 1.8 mil $ 5.1 mil
Impact on General Fund
For Life of Tax Credits- New New New Net
New Employees New Rev. Local State Costs Impact
If 500 $ 65.4 mil $31.7 mil $33.7 mil $15.8 mil $17.9 mil
If 1,000 $108.4 mil $50.5 mil $57.9 mil $16.9 mil $41.1 mil
If 1,500 $151.4 mil $69.3 mil $82.2 mil $17.8 mil $64.4 mil
If 2,000 $194.4 mil $88.1 mil $106.4 mil $18.8 mil $87.6 mil
Contact
Name: Brian Whitlock
Agency: Governor's Office
Phone: 334-2100
STATEMENT OF PURPOSE/FISCAL NOTE H216