US Laws, Codes, Statutes & Cases

                                  TITLE  63
                             REVENUE AND TAXATION
                                  CHAPTER 44
                THE IDAHO SMALL EMPLOYER INCENTIVE ACT OF 2005
    63-4402.  DEFINITIONS. (1) The definitions contained in the Idaho income
tax act, shall apply to this chapter unless modified in this chapter or unless
the context clearly requires another definition.
    (2)  As used in this chapter:
    (a)  "Commission" means the Idaho state tax commission.
    (b)  "New plant and building facilities" means facility or facilities,
    including related parking facilities, where employees are physically
    employed.
    (c)  "Idaho income tax act" means chapter 30, title 63, Idaho Code.
    (d)  "Investment in new plant" means investment in new plant and building
    facilities that are:
         (i)   Qualified investments; or
         (ii)  Buildings or structural components of buildings.
    (e)  "New employee":
         (i)   Means an individual, employed primarily within the project site
         by the taxpayer, subject to Idaho income tax withholding whether or
         not any amounts are required to be withheld, covered for unemployment
         insurance purposes under chapter 13, title 72, Idaho Code, and who
         was eligible to receive employer provided coverage under a health
         benefit plan as described in section 41-4703, Idaho Code, during the
         taxable year. A person shall be deemed to be so employed if such
         person performs duties on a regular full-time basis.
         (ii)  The number of employees employed primarily within the project
         site by  the taxpayer, during any taxable year for a taxpayer shall
         be the mathematical average of the number of such employees reported
         to the Idaho department of commerce and labor for employment security
         purposes during the twelve (12) months of the taxable year which
         qualified under paragraph (e)(i) of this subsection (2). In the event
         the business is in operation for less than the entire taxable year,
         the number of employees of the taxpayer for the year shall be the
         average number actually employed during the months of operation,
         provided that the qualifications of paragraph (e)(i) of this
         subsection (2) are met.
         (iii) Existing employees of the taxpayer who obtain new qualifying
         positions within the project site and employees transferred from a
         related taxpayer or acquired as part of the acquisition of a trade or
         business from another taxpayer within the prior twelve (12) months
         are not included in this definition unless the new position or
         transfer creates a net new job in Idaho.
    (f)  "Project period" means the period of time beginning at the earlier of
    a physical change to the project site or the first employment of new
    employees located in Idaho who are related to the activities at the
    project site, but no earlier than January 1, 2006, and ending when the
    facilities constituting the project are placed in service, but no later
    than December 31, 2010.
    (g)  "Project site" means an area or areas at which new plant and building
    facilities are located and at which the tax incentive criteria have been
    or will be met and which are either:
         (i)   A single geographic area located in this state at which the new
         plant and building facilities owned or leased by the taxpayer are
         located; or
         (ii)  One (1) or more geographic areas located in this state if
         eighty percent (80%) or more of the investment required by subsection
         (2)(j)(i) of this section is made at one (1) of the areas.
         (iii) The project site must be identified and described to the
         commission by a taxpayer subject to tax under the Idaho income tax
         act, in the form and manner prescribed by the commission.
    (h)  "Qualified investment" shall be defined as in section 63-3029B, Idaho
    Code.
    (i)  "Recapture period" means:
         (i)   In the case of credits described in sections 63-4403 and
         63-4404, Idaho Code, the same period for which a recapture of
         investment tax credit under section 63-3029B, Idaho Code, is
         required; or
         (ii)  In the case of credits described in section 63-4405, Idaho
         Code, five (5) years from the date the project period ends.
    (j)  "Tax incentive criteria" means a taxpayer meeting at a project site
    the requirements of subparagraphs (i) and (ii) of this paragraph (j).
         (i)   During the project period, making capital investments in new
         plant of at least five hundred thousand dollars ($500,000) at the
         project site.
         (ii)  During a period of time beginning on January 1, 2006, and
         ending at the conclusion of the project period:
              1.  Increasing employment at the project site by at least ten
              (10) new employees each of whom must earn at least nineteen
              dollars and twenty-three cents ($19.23) per hour worked during
              the taxpayer's taxable year.
              2.  Employment increases above the ten (10) new employees
              described in subparagraph (ii)1. of this paragraph (j) at the
              project site shall on average earn at least fifteen dollars and
              fifty cents ($15.50) per hour worked during the taxpayer's
              taxable year. Calculation of the group average earnings shall
              not include amounts paid to any employee earning more than
              forty-eight dollars and eight cents ($48.08) per hour or less
              than twelve dollars ($12.00) per hour worked during the
              taxpayer's taxable year. The denominator of this calculation
              shall be the number of new job positions filled that pay less
              than forty-eight dollars and eight cents ($48.08) per hour
              worked during the taxpayer's taxable year.
              3.  Earnings calculated pursuant to subparagraph (ii) of this
              paragraph (j) shall include income upon which Idaho income tax
              withholding is required under section 63-3035, Idaho Code, but
              shall not include income such as stock options or restricted
              stock grants.
              4.  For purposes of determining whether the increased employment
              threshold has been met, employment at the project site shall be
              determined by calculating the increase of such new employees
              reported to the Idaho department of commerce and labor for
              employment security purposes over the employees so reported as
              of the beginning of the project period or no earlier than
              January 1, 2006, whichever is larger; and
              5.  Maintaining net increased employment in Idaho required by
              subparagraph (ii) of this paragraph (j) during the remainder of
              the project period.
    (k)  "Taxpayer," for purposes of paragraphs (j) and (e) of this subsection
    (2), means either:
         (i)   A single taxpayer; or
         (ii)  In the context of a unitary group filing a combined report
         under section 63-3027(t), Idaho Code, all members of a unitary group
         includable in a combined report for the tax years in which the credit
         provided for by this chapter may be claimed. For all other purposes,
         the terms of section 63-3009, Idaho Code, and section 63-3027(t)(1),
         Idaho Code, apply to the meaning of "taxpayer."