US Laws, Codes, Statutes & Cases

                                  TITLE  63
                             REVENUE AND TAXATION
                                  CHAPTER 30
                                  INCOME TAX
    63-3029B.  INCOME TAX CREDIT FOR CAPITAL INVESTMENT. (1) At the election
of the taxpayer there shall be allowed, subject to the applicable limitations
provided herein as a credit against the income tax imposed by chapter 30,
title 63, Idaho Code, an amount equal to the sum of:
    (a)  The tax credit carryovers; and
    (b)  The tax credit for the taxable year.
    (2)  The maximum allowable amount of the credit for the current taxable
year shall be three percent (3%) of the amount of qualified investments made
during the taxable year.
    (3)  As used in this section "qualified investment" means certain property
which:
    (a)  (i)   Is eligible for the federal investment tax credit, as defined
         in sections 46(c) and 48 of the Internal Revenue Code subject to the
         limitations provided for certain regulated companies in section 46(f)
         of the Internal Revenue Code and is not a motor vehicle under eight
         thousand (8,000) pounds gross weight; or
         (ii)  Is qualified broadband equipment as defined in section
         63-3029I, Idaho Code; and
    (b)  Is acquired, constructed, reconstructed, erected or placed into
    service after December 31, 1981; and
    (c)  Has a situs in Idaho.
    (4)  (a) For qualified investments placed in service in 2003 and
    thereafter, a taxpayer, other than a person whose rate of charge or rate
    of return, or both, is regulated or limited according to federal or state
    law, may elect, in lieu of the credit provided by this section, a two (2)
    year exemption from all taxes on personal property on the qualified
    investment. The exemption from personal property tax shall apply to the
    year the election is filed as provided in this section and the immediately
    following year. The election provided by this paragraph is available only
    to a taxpayer whose Idaho taxable income, before application of net
    operating losses carried back or forward, in the second preceding taxable
    year in which the investment is placed in service is negative.
    (b)  The election shall be made in the form prescribed by the state tax
    commission and shall include a specific description and location of all
    qualified investments placed into service and located in the jurisdiction
    of the assessing authority, a designation of the specific assets for which
    the exemption is claimed, and such other information as the state tax
    commission may require. The election must be made by including the
    election form with the listing of personal property required by section
    63-302, Idaho Code, or, in the case of operating property assessed under
    chapter 4, title 63, Idaho Code, with the operator's statement required by
    section 63-404, Idaho Code. Once made the election is irrevocable. If no
    election is made, the election is not otherwise available. A copy of the
    election form must also be attached to the original income tax return due
    for the taxable year in which the claim was made.
    (c)  The state tax commission and the various county assessors are
    authorized to exchange information as necessary to properly coordinate the
    exemption provided in this subsection. Information disclosed to county
    officials under this subsection may be used only to determine the validity
    or amount of a taxpayer's entitlement to the exemption provided in this
    section, and is not otherwise subject to public disclosure as provided in
    section 9-340D, Idaho Code.
    (d)  In the event that an investment in regard to which the election under
    this subsection was made is determined by the state tax commission:
         (i)   To not be a qualified investment, or
         (ii)  To have ceased to qualify during the recapture period, or
         (iii) To be otherwise not qualified for the election,
    the taxpayer shall be subject to recapture of the property tax benefit.
    (e)  The benefit to be recaptured in subsection (4)(d) of this section
    shall be computed in the manner required in subsection (7) of this section
    and such recapture amount shall be subject to assessment in the same
    manner as a deficiency in tax under this chapter. For purposes of
    calculating the recapture, the property tax benefit shall be:
         (i)   In the case of locally assessed property located in a single
         county or nonapportioned centrally assessed property, the market
         value of exempted property times the average property tax levy for
         that county in the year or years for which the exemption was claimed.
         (ii)  In the case of other centrally assessed property and property
         located in more than one (1) county, the market value of exempted
         property times the average urban property tax levy of the state as
         determined by the state tax commission in each of the years for which
         the exemption was claimed.
    (f)  In the event that a recapture of the exemption is required under this
    subsection (4), the person claiming the exemption shall report the event
    to the state tax commission in the manner the state tax commission may by
    rule require. The report shall be due no later than the due date of that
    person's income tax return under this chapter for the taxable year in
    which the event occurs. The recapture amount is due and payable with the
    report.  Any amount of recapture not paid is a deficiency within the
    meaning of section 63-3044, Idaho Code.
    (g)  All moneys collected by the state tax commission pursuant to this
    subsection, which amounts are continuously appropriated for this purpose,
    shall be deposited with the state treasurer and placed in the state refund
    account, as provided by section 63-3067, Idaho Code, to be remitted to the
    county within which the property was located that was not a qualified
    investment or  ceased to qualify during the recapture period. The county
    shall distribute this remittance to all appropriate taxing districts based
    on the proportion each appropriate taxing district's levy is to the total
    of all the levies of the taxing districts for the tax code area where the
    property was located for each year the exemption was granted. If any
    taxing district is dissolved or disincorporated, the proportionate share
    of the remittance to be distributed to that taxing district shall be
    deposited in the county current expense fund.
    (h)  For purposes of the limitation provided by section 63-802, Idaho
    Code, moneys received pursuant to this subsection shall be treated as
    property tax revenue by taxing districts.
    (5)  Notwithstanding the provisions of subsections (1) and (2) of this
section, the amount of the credit allowed shall not exceed fifty percent (50%)
of the tax liability of the taxpayer. The tax liability of the taxpayer shall
be the tax after deducting the credit allowed by section 63-3029, Idaho Code.
    (6)  If the sum of credit carryovers from the credit allowed by subsection
(2) of this section and the amount of credit for the taxable year from the
credit allowed by subsection (2) of this section exceed the limitation imposed
by subsection (5) of this section for the current taxable year, the excess
attributable to the current taxable year's credit shall be an investment
credit carryover to the fourteen (14) succeeding taxable years. In the case of
a group of corporations filing a combined report under section 63-3027, Idaho
Code, or sections 63-3027B  through 63-3027E, Idaho Code, credit 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 provisions of subsection (5) of this
section, instead of carried over. The entire amount of unused credit shall be
carried forward to the earliest of the succeeding years, wherein the oldest
available unused credit shall be used first, so long as the qualified
investment property for which the unused credit was granted still maintains
Idaho situs. For a combined group of corporations, credit carried forward may
be claimed by any member of the group unless the member who earned the credit
is no longer included in the combined group.
    (7)  Any recapture of the credit allowed by subsection (2) of this section
on property disposed of or ceasing to qualify, prior to the close of the
recapture period, shall be determined according to the applicable recapture
provisions of the Internal Revenue Code. In the case of a unitary group of
corporations, the increase in tax due to the recapture of investment tax
credit must be reported by the member of the group who earned the credit
regardless of which member claimed the credit against tax.
    (8)  For the purpose of determining whether property placed in service is
a "qualified investment" as defined in subsection (3) of this section, the
provisions of section 49 of the Internal Revenue Code shall be disregarded.
"Qualified investment" shall not include any amount for which a deduction is
allowed under section 179 of the Internal Revenue Code in computing taxable
income.
    (9)  For purposes of this section, property has a situs in Idaho during a
taxable year if it is used in Idaho at any time during the taxable year.
Property not used in Idaho during a taxable year does not have a situs in
Idaho in the taxable year during which the property is not used in Idaho or in
any subsequent taxable year. No credit or carryover of credit is permitted
under this section if the credit or carryover relates to property that does
not have a situs in Idaho during the taxable year for which the credit or
carryover is claimed. The Idaho situs of property must be established by
records maintained by the taxpayer which are created reasonably
contemporaneously with the use of the property.
    (10) In the case of property used both in and outside Idaho, the taxpayer,
electing to claim the credit provided in this section, must elect to compute
the qualified investment in property with a situs in Idaho for all such
investments first qualifying during that year in one (1), but only one (1), of
the following ways:
    (a)  The amount of each qualified investment in a specific asset shall be
    separately computed based on the percentage of the actual use of the
    property in Idaho by using a measure of the use, such as total miles or
    total machine hours, that most accurately reflects the beneficial use
    during the taxable year in which it is first acquired, constructed,
    reconstructed, erected or placed into service; provided, that the asset is
    placed in service more than ninety (90) days before the end of the taxable
    year. In the case of assets acquired, constructed, reconstructed, erected
    or placed into service within ninety (90) days prior to the end of the
    taxable year in which the investment first qualifies, the measure of the
    use of that asset within Idaho for that year shall be based upon the
    percentage of use in Idaho during the first ninety (90) days of use of the
    asset;
    (b)  The investment in qualified property used both inside and outside
    Idaho during the taxable year in which it is first acquired, constructed,
    reconstructed, erected or placed into service shall be multiplied by the
    percent of the investment that would be included in the numerator of the
    Idaho property factor determined pursuant to section 63-3027, Idaho Code,
    for the same year.
    (11) Only for the purposes of subsections (3)(a) and (8) of this section,
references to sections of the "Internal Revenue Code" mean the sections
referred to as they existed in the Internal Revenue Code of 1986 prior to
November 5, 1990.