2005 Idaho Code - 63-3029J — INCENTIVE INCOME TAX INVESTMENT CREDIT

                                  TITLE  63
                             REVENUE AND TAXATION
                                  CHAPTER 30
                                  INCOME TAX
    63-3029J.  INCENTIVE INCOME TAX INVESTMENT CREDIT. (1) Subject to the
limitations of this section, for taxable year 2001 only, there shall be
allowed to a taxpayer a nonrefundable credit against taxes imposed by sections
63-3024, 63-3025 and 63-3025A, Idaho Code, in the amount allowed by subsection
(2) of this section for qualified investments in Idaho. The credit shall be in
addition to the credit for capital investment permitted by section 63-3029B,
Idaho Code.
    (2)  The credit permitted in subsection (1) of this section shall be at
the percentage rate determined under either subsection (2)(a) or (2)(b) of
this section at the election of the taxpayer.
    (a)  (i)   One-half (1/2) of the amount by which the average three-year
         unemployment rate in the county in which the property is located
         exceeds six percent (6%).  In the case of mobile property, the
         property shall be located in the county in which it is primarily
         based.
         (ii)  For purposes of this section the director of the department of
         labor shall, on or before the first day of September of each calendar
         year, establish and certify to the state tax commission the average
         three-year unemployment rate in each county in Idaho for the
         immediately preceding three (3) calendar years. The rates thus
         certified shall apply to the calculation of the credit under
         subsection (2)(a)(i) of this section for property qualifying in the
         taxable year beginning during the next calendar year.
    (b)  (i)   One-tenth of one percent (.1%) for each full percent that the
         three-year average per capita personal income level in the county in
         which the property is located is below ninety percent (90%) of the
         average statewide per capita personal income level.
         (ii)  For purposes of this section the director of the department of
         commerce shall, on or before the first day of September of each
         calendar year, establish and certify to the state tax commission the
         most current three-year average per capita personal income level in
         each county in Idaho and the statewide per capita personal income
         level for the most current preceding three (3) calendar years. The
         levels thus certified shall apply to the calculation of the credit
         under subsection (2)(b)(i) of this section for property qualifying in
         the taxable year beginning during the next calendar year.
    (3)  As used in this section the term "qualified investment" shall be
defined as in section 63-3029B, Idaho Code.
    (4)  The credit allowed by subsection (1) of this section together with
any credits carried forward under subsection (6) of this section shall not
exceed in any one (1) taxable year the lesser of:
    (a)  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; or
    (b)  Five hundred thousand dollars ($500,000).
    (5)  In the case of a group of corporations filing a combined report under
subsection (t) of section 63-3027, 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 (6) 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 who earned the credit
is no longer included in the combined group.
    (6)  If the credit allowed by subsection (1) of this section exceeds the
limitation under subsection (4) of this section, the excess amount may be
carried forward for a period that does not exceed the next fourteen (14)
taxable years.
    (7)  In the event that property upon which the credit allowed by this
section has been used ceases to qualify for the credit allowed by section
63-3029B, Idaho Code, the recapture of credit under this section shall be in
the same proportion and subject to the same provisions as the amount of credit
required to be recaptured under section 63-3029B, Idaho Code.
    (8)  (a) Subject to the requirements of this subsection, a taxpayer who
    earns and is entitled to the credit or to an unused portion of the credit
    allowed by this section may transfer the unused credit to another taxpayer
    required to file a return under this chapter.
    (b)  Before completing a transfer under this subsection, the transferor
    shall notify the state tax commission of its intention to transfer the
    credit and the identity of the transferee. The state tax commission shall
    provide the transferor with a written statement of the amount of credit
    available under this section as then appearing in the commission's
    records and the number of years the credit may be carried over. The
    transferor shall provide the transferee with the original statement.  The
    transferee shall attach a copy of the statement to any return in regard to
    which the transferred credit is claimed.
    (c)  In the event that after the transfer the state tax commission
    determines that the amount of credit properly available under this section
    is less than the amount claimed by the transferor of the credit and shown
    in the statement described in subsection (8)(b) of this section or that
    the credit is subject to recapture, the commission shall assess the amount
    of overstated credit as taxes due from the transferor and not the
    transferee.  The assessment shall be made in the manner provided for a
    deficiency in taxes under this chapter.
    (9)  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 the credit under this section to the shareholders,
    partners or beneficiaries in proportion to their share of the income from
    the S corporation, partnership, trust or estate.
    (b)  A requirement that a transferor under subsection (8) of this section,
    prior to obtaining the written statement provided in subsection (8)(b) of
    this section, post such bond or security as the state tax commission may
    require to secure any liability referred to in subsection (8)(c) of this
    section.  Such rules shall provide an opportunity for a taxpayer, upon a
    showing of financial responsibility, to have the bond waiver, for notice
    of denial of waiver in accordance with section 63-3045, Idaho Code, and
    for review in accordance with section 63-3045B, Idaho Code.