REVENUE AND TAXATION
THE IDAHO SMALL EMPLOYER INCENTIVE ACT OF 2005
63-4406. Limitations, and other provisions on credits against income taxes. (1) In addition to other needed rules, the state tax commission may promulgate rules prescribing:
(a) In the case of S corporations, partnerships, trusts, or estates, a method of attributing a credit under this chapter to the shareholders, partners or beneficiaries in proportion to their share of the income from the S corporation, partnership, trust, or estate; and
(b) The method by which the carryover of credits and the duty to recapture credits shall survive and be transferred in the event of reorganizations, mergers or liquidations.
(2) In the case of a unitary group of corporations filing a combined report under section 63-3027(22), Idaho Code, credits against income tax provided by sections 63-4403, 63-4404, and 63-4405, Idaho Code, earned by one (1) member of the group but not used by that member may be used by another member of the group, subject to the limitation in subsection (3) of this section, instead of carried over. For a combined group of corporations, credit carried forward may be claimed by any member of the group unless the member or members who earned the credit are no longer included in the combined group.
(3) The total of all credits allowed by sections 63-4403, 63-4404, and 63-4405, Idaho Code, together with any credits carried forward under subsection (4) of this section shall not exceed the amount of tax due under sections 63-3024, 63-3025, and 63-3025A, Idaho Code, after allowance for all other credits permitted by this chapter and the Idaho income tax act.
(4) If the credits exceed the limitation under subsection (3) of this section, the excess amount may be carried forward for a period that does not exceed:
(a) The next fourteen (14) taxable years, in the case of credits allowed by sections 63-4403 and 63-4404, Idaho Code; or
(b) The next ten (10) taxable years, in the case of credits allowed by section 63-4405, Idaho Code.
[63-4406, added 2005, ch. 370, sec. 1, p. 1182; am. 2006, ch. 195, sec. 7, p. 609; am. 2008, ch. 390, sec. 4, p. 1073; am. 2022, ch. 52, sec. 5, p. 172.]