REVENUE AND TAXATION
THE IDAHO SMALL EMPLOYER INCENTIVE ACT OF 2005
63-4408. Sales and use tax incentives — Rebates — Recapture. (1) For calendar years beginning on January 1, 2006, and ending on December 31, 2030, subject to the limitations of this chapter, a taxpayer who has certified that the tax incentive criteria will be met within the project site shall be entitled to receive a rebate of twenty-five percent (25%) of all sales and use taxes imposed by chapter 36, title 63, Idaho Code, and that the taxpayer or its contractors actually paid in regard to any property constructed, located or installed within the project site during the project period for that site.
(2) Upon filing of a written refund claim by the taxpayer entitled to the rebate, and subject to such reasonable documentation and verification as the commission may require, the rebate shall be paid by the commission as a refund allowable under section 63-3626, Idaho Code. A claim for rebate under this section must be filed on or before the last day of the third calendar year following the year in which the taxes sought to be rebated were paid or the right to the rebate is lost.
(3) Any rebate paid shall be subject to recapture by the commission:
(a) At one hundred percent (100%) in the event that the tax incentive criteria are not met at the project site during the project period;
(b) In the event that the property is not used, stored or otherwise consumed within the project site for a period of sixty (60) consecutive full months after the property was placed in service; or
(c) In the event that the employment required in section 63-4402(2)(j), Idaho Code, is not maintained for sixty (60) consecutive full months from the date the project period ends.
Any recapture required by paragraph (b) or (c) of this subsection shall be in the same proportion as an amount of credit required to be recaptured under section 63-3029B, Idaho Code.
(4) Any recapture amount due under this section shall be a deficiency in tax for the period in which the disqualification first occurs for purposes of section 63-3629, Idaho Code, and may be enforced and collected in the manner provided by the Idaho sales tax act, provided however, that in lieu of the provisions of section 63-3633, Idaho Code, the period of time within which the commission may issue a notice under section 63-3629, Idaho Code, in regard to an amount subject to recapture, shall be the later of five (5) years after the end of the taxable year, for income tax purposes, in which the project period ends.
(5) The rebate allowed by this section is limited to sales and use taxes actually paid by the taxpayer or its contractors for taxable property related to new plant and building facilities.
[63-4408, added 2005, ch. 370, sec. 1, p. 1184; am. 2006, ch. 314, sec. 5, p. 979; am. 2009, ch. 191, sec. 5, p. 625; am. 2020, ch. 243, sec. 5, p. 714.]