2007 Legislation
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HOUSE BILL NO. 177 – Income tax credit/biofuel/investmnt

HOUSE BILL NO. 177

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Bill Status



H0177...............................................by REVENUE AND TAXATION
INCOME TAX CREDIT - Adds to existing law to provide for an income tax
credit for capital investment in biofuel infrastructure, with a limitation.
                                                                        
02/12    House intro - 1st rdg - to printing
02/13    Rpt prt - to Rev/Tax
02/22    Rpt out - rec d/p - to 2nd rdg
02/23    2nd rdg - to 3rd rdg
02/27    3rd rdg - PASSED - 68-0-2
      AYES -- Anderson, Andrus, Barrett, Bayer, Bell, Bilbao, Black, Block,
      Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew, Clark,
      Collins, Crane, Durst, Eskridge, Hagedorn, Hart, Harwood, Henbest,
      Henderson, Jaquet, Killen, King, Kren, Labrador, Lake, LeFavour,
      Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer, Moyle,
      Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ring,
      Ringo, Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(2),
      Shepherd(8), Shirley, Shively, Smith(30), Smith(24), Snodgrass,
      Stevenson, Thayn, Trail, Vander Woude, Wills, Wood(27), Wood(35), Mr.
      Speaker
      NAYS -- None
      Absent and excused -- Bedke, Edmunson
    Floor Sponsor - Eskridge
    Title apvd - to Senate
02/28    Senate intro - 1st rdg - to Loc Gov
03/09    Rpt out - rec d/p - to 2nd rdg
03/12    2nd rdg - to 3rd rdg
03/15    3rd rdg - PASSED - 26-8-1
      AYES -- Andreason, Bair, Bilyeu, Broadsword, Cameron, Coiner,
      Darrington, Davis, Fulcher, Gannon, Geddes, Goedde, Hammond, Hill,
      Jorgenson, Kelly, Keough, Lodge, McGee, McKague, McKenzie, Pearce,
      Richardson, Schroeder, Siddoway, Stennett
      NAYS -- Burkett, Corder, Heinrich, Langhorst, Little, Malepeai,
      Stegner, Werk
      Absent and excused -- Bastian
    Floor Sponsor - McKenzie
    Title apvd - to House
03/16    To enrol - Rpt enrol - Sp signed
03/19    Pres signed - To Governor
03/23    Governor signed
         Session Law Chapter 165
         Effective: 07/01/07;
         01/01/12 Sunset clause

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 177
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO INCOME TAX CREDITS; AMENDING CHAPTER 30, TITLE 63, IDAHO CODE,  BY
  3        THE  ADDITION  OF  A  NEW  SECTION 63-3029M, IDAHO CODE, TO PROVIDE FOR AN
  4        INCOME TAX CREDIT FOR CAPITAL INVESTMENT  IN  BIOFUEL  INFRASTRUCTURE,  TO
  5        DEFINE  TERMS,  TO  PROVIDE  A LIMIT, TO PROVIDE THE MAXIMUM AMOUNT OF THE
  6        CREDIT, TO PROVIDE FOR CARRY FORWARD AUTHORITY, TO PROVIDE FOR  RECAPTURE,
  7        TO PROVIDE FOR ADMINISTRATIVE PROVISIONS AND TO PROVIDE FOR RULES; PROVID-
  8        ING AN EFFECTIVE DATE AND PROVIDING A SUNSET DATE.
                                                                        
  9    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 10        SECTION  1.  That  Chapter  30,  Title 63, Idaho Code, be, and the same is
 11    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 12    ignated as Section 63-3029M, Idaho Code, and to read as follows:
                                                                        
 13        63-3029M. INCOME  TAX CREDIT FOR CAPITAL INVESTMENT IN BIOFUEL INFRASTRUC-
 14    TURE. (1) The definitions contained in the Idaho income tax act shall apply to
 15    this section unless the context clearly requires another definition.
 16        (2)  As used in this section:
 17        (a)  "Biofuel" means any fuel offered for sale as  a  transportation  fuel
 18        that  is  agriculturally  derived  and  meets applicable ASTM standards as
 19        required in section 37-2506, Idaho Code, including, but  not  limited  to,
 20        ethanol, ethanol-blended fuel, biodiesel and biodiesel blends.
 21        (b)  "Fuel  distributor"  or "distributor" means any business with a situs
 22        in Idaho that distributes motor vehicle fuel including,  but  not  limited
 23        to, wholesalers, jobbers, distributors or terminal operators.
 24        (c)  "Fueling  infrastructure"  means necessary tanks, piping, pumps, pump
 25        stands, hoses, monitors, blending equipment, meters, rack  injection  sys-
 26        tems  or any other equipment including installation of equipment necessary
 27        for a fuel distributor to offer biofuel to its customers, or for a  retail
 28        fuel outlet to offer biofuel for sale.
 29        (d)  "Placed into service" means that biofuel is offered for sale and con-
 30        tinues  to  be  offered  for  sale through the fueling infrastructure made
 31        available by the qualified investment.
 32        (e)  "Qualified investment" means installation of new fueling  infrastruc-
 33        ture  dedicated to the purpose of selling or offering for sale biofuel; or
 34        upgrading existing fueling infrastructure demonstrated to be  incompatible
 35        with  the biofuel to be offered, including cleaning of existing fuel stor-
 36        age tanks,  trucks  or  other  equipment  for  the  purpose  of  providing
 37        biofuels.
 38        (f)  "Recapture period" means a period of five (5) years from the date the
 39        qualified  investment was placed into service. During this period, biofuel
 40        must be offered for sale on a continuous basis.
 41        (g)  "Retail fuel dealer" or "dealer"  means any business with a situs  in
 42        Idaho  that  sells  or  offers  for sale at the retail level motor vehicle
 43        fuel.
                                                                        
                                       2
                                                                        
  1        (3)  For taxable years beginning on or after January 1, 2007,  and  before
  2    December  31, 2011, and subject to the limitations of this section, a taxpayer
  3    who has placed into service a qualified investment after July 1, 2007,  shall,
  4    in lieu of the investment tax credit provided in section 63-3029B, Idaho Code,
  5    be  allowed  a nonrefundable credit against taxes imposed by sections 63-3024,
  6    63-3025 and 63-3025A, Idaho Code, in the amount of six  percent  (6%)  of  the
  7    amount  of  qualified investment as defined in subsection (2) of this section,
  8    and made during a taxable year, wherever located within this state.
  9        (4)  The credit allowed by this section shall  not  exceed  fifty  percent
 10    (50%) of the income tax liability of the taxpayer.
 11        (5)  In the case of a group of corporations filing a combined report under
 12    subsection (t) of section 63-3027, Idaho Code, credit earned by one (1) member
 13    of  the group but not used by that member may be used by another member of the
 14    group, subject to the provisions of subsection (6) of this section, instead of
 15    carried over. For a combined group of corporations, credit carried forward may
 16    be claimed by any member of the group unless the member who earned the  credit
 17    is no longer included in the combined group.
 18        (6)  If  the  credit allowed by subsection (3) of this section exceeds the
 19    limitation under subsection (4) of this section, the excess amount may be car-
 20    ried forward for a period that does not  exceed  the  next  five  (5)  taxable
 21    years.
 22        (7)  In  the  event  that  the  qualified investment upon which the credit
 23    allowed by this section has been used ceases to qualify for the credit  during
 24    the  recapture period,  the recapture of credit under this section shall be in
 25    the same proportion and subject to the same provisions as the amount of credit
 26    required to be recaptured under section 63-3029B, Idaho Code.
 27        (8)  In addition to other needed rules, the state tax commission may  pro-
 28    mulgate  rules  prescribing, in the case of S corporations, partnerships, lim-
 29    ited liability companies, trusts or  estates,  a  method  of  attributing  the
 30    credit  under  this  section to the shareholders, partners or beneficiaries in
 31    proportion to their share of the income from the S  corporation,  partnership,
 32    trust or estate.
                                                                        
 33        SECTION  2.  This  act shall be in full force and effect on and after July
 34    1, 2007, and shall be null, void and of no force and effect on and after Janu-
 35    ary 1, 2012.

Statement of Purpose / Fiscal Impact


                    STATEMENT OF PURPOSE
                              
                         RS 16786C1
  
The purpose of this legislation is to provide an additional 3% 
investment tax credit to any Idaho retail fuel dealer or fuel 
distributor who chooses to invest in infrastructure dedicated 
to providing biofuels to their customers.  The bill sunsets at 
the end of 2011.
  
  
  
                       FISCAL IMPACT
  
The impact on the General Fund from this legislation is estimated 
to be $30,000 in FY08. The maximum estimated impact of the bill is 
$300,000 over five years.  
       
  
  
  
Contact
Sen. McKenzie      Rep. Eskridge                 
Sen. Gannon        Rep. Stevenson
Sen. Lodge         Rep. Anderson
                   Rep. Wood(35)
                   Rep. Edmunson
  
Phone: 332-1000
  
  
STATEMENT OF PURPOSE/FISCAL NOTE                           H 177