Print Friendly HOUSE BILL NO. 177 – Income tax credit/biofuel/investmnt
HOUSE BILL NO. 177
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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.
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,
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
01/01/12 Sunset clause
]]]] 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
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
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
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
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.
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.
Sen. McKenzie Rep. Eskridge
Sen. Gannon Rep. Stevenson
Sen. Lodge Rep. Anderson
STATEMENT OF PURPOSE/FISCAL NOTE H 177