2005 Idaho Code - 63-2902 — DEFINITIONS

                                  TITLE  63
                             REVENUE AND TAXATION
                                  CHAPTER 29
            THE IDAHO CORPORATE HEADQUARTERS INCENTIVE ACT OF 2005
    63-2902.  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)  "Headquarters or administrative facilities" means facility or
    facilities, including related parking facilities, where corporate staff
    employees are physically employed, and where the majority of the company's
    services are handled either on a regional  or national basis. Company
    services may include: accounts receivable and payable, accounting, data
    processing, distribution management, employee benefit plan, financial and
    securities accounting, information technology, insurance, legal,
    merchandising, payroll, personnel, purchasing/procurement, planning,
    reporting and compliance, tax, treasury, or other headquarters-related
    services.
    (c)  "Idaho income tax act" means chapter 30, title 63, Idaho Code.
    (d)  "Investment in new plant" means investment in headquarters or
    administrative 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, 2005, and ending when the
    facilities constituting the project are placed in service, but no later
    than December 31, 2009.
    (g)  "Project site" means an area or areas at which headquarters and
    headquarters 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
         headquarters or administrative 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 63-2903 and
         63-2904, 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 63-2905, 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 both subparagraphs (i) and (ii) of this paragraph (j).
         (i)   During the project period, making capital investments in new
         plant of at least fifty million dollars ($50,000,000) at the project
         site.
         (ii)  During a period of time beginning on January 1, 2005, and
         ending at the conclusion of the project period:
              1.  Increasing employment at the project site by at least five
              hundred (500) new employees:
                   (A)  Each of whom must earn at least twenty-four dollars
                   and  four cents ($24.04) per hour worked during the
                   taxpayer's taxable year; or
                   (B)  Each of whom is part of a group of five hundred (500)
                   or more employees at the project site which group on
                   average earns at least twenty-eight dollars and eighty-five
                   cents ($28.85) per hour worked during the taxpayer's
                   taxable year. Calculation of the group average earnings may
                   not include amounts paid to any employee earning more than
                   ninety-six dollars and fifteen cents ($96.15) or less than
                   fifteen dollars and fifty cents ($15.50) per hour worked
                   during the taxpayer's taxable year.
                   (C)  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.
                   (D)  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, 2005,
                   whichever is larger; and
              2.  Maintaining net increased employment in Idaho required by
              subparagraph (ii)1. 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."