reglab/statecodes huggingface dataset:
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.581 - SPECIAL RULES: REFERENCES USED IN MTC SPECIAL INDUSTRY REGULATIONS

Current through August 31, 2023
Section
				63-3027(s), Idaho
				Code. For purposes of applying the rules applicable to Section
				63-3027, Idaho Code, references in
				the MTC special industry regulations means the following: (4-6-23)
01.
Article IV
. Of The
			 Multistate Tax Compact. (4-6-23)
a. Article
			 IV. means Section
			 63-3027, Idaho Code.
			 (4-6-23)
b. Article IV.1 means
			 Section 63-3027(1), Idaho
			 Code. (4-6-23)
c. Article IV.2
			 means Section
			 63-3027(2), Idaho
			 Code. (4-6-23)
d. Article IV.3
			 means Section
			 63-3027(3), Idaho
			 Code. (4-6-23)
e. Article IV.4
			 means Section
			 63-3027(4), Idaho
			 Code. (4-6-23)
f. Article IV.5
			 means Section
			 63-3027(5), Idaho
			 Code. (4-6-23)
g. Article IV.6
			 means Section
			 63-3027(6), Idaho
			 Code. (4-6-23)
h. Article IV.7
			 means Section
			 63-3027(7), Idaho
			 Code. (4-6-23)
i. Article IV.8
			 means Section
			 63-3027(8), Idaho
			 Code. (4-6-23)
j. Article IV.9
			 means Section
			 63-3027(10)(a),
			 Idaho Code. (4-6-23)
k. Article
			 IV.10 means Section
			 63-3027(16)(a),
			 Idaho Code. (4-6-23)
l. Article
			 IV.11 means Section
			 63-3027(16)(b),
			 Idaho Code. (4-6-23)
m. Article
			 IV.12 means Section
			 63-3027(16)(c),
			 Idaho Code. (4-6-23)
n. Article
			 IV.13 means Section
			 63-3027(16)(d),
			 Idaho Code. (4-6-23)
o. Article
			 IV.14 means Section
			 63-3027(16)(e),
			 Idaho Code. (4-6-23)
p. Article
			 IV.15 means Section
			 63-3027(10)(a),
			 Idaho Code. (4-6-23)
q. Article
			 IV.16 means Section
			 63-3027(12),
			 Idaho Code. (4-6-23)
r. Article
			 IV.17 means Section
			 63-3027(13),
			 Idaho Code. (4-6-23)
s. Article
			 IV.18 means Section
			 63-3027(17),
			 Idaho Code. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.585 - EXCEPTIONS TO APPORTIONMENT FORMULA: SEPARATE ACCOUNTING

Current through August 31, 2023
Section
				63-3027(17),
				Idaho Code. Separate accounting may be used only with prior approval of the Tax
				Commission. A written request must be filed with the Tax Commission at least
				thirty (30) days prior to the due date for filing the return. The Tax
				Commission is to notify the taxpayer whether the request has been approved or
				denied. This determination is be based on whether the taxpayer has overcome the
				presumption that separate accounting will not be allowed when unitary filing
				and apportionment more accurately reflect the taxpayer's income.
				(4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.595 - EXCEPTIONS TO APPORTIONMENT FORMULA: ADDITIONAL OR SUBSTITUTE FACTORS

Current through August 31, 2023
Section
				63-3027(17),
				Idaho Code. A factor other than the sales factor may be used only with prior
				approval of the Tax Commission. A written request must be filed with the Tax
				Commission at least thirty (30) days prior to the due date for filing the
				return. The Tax Commission is to notify the taxpayer whether the request has
				been approved or denied. The taxpayer must establish that the use of the
				additional factor or substitute factor more accurately reflects the taxpayer's
				income. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.600 - ENTITIES INCLUDED IN A COMBINED REPORT

Current through August 31, 2023
Section
				63-3027(22),
				Idaho Code
01.
Combined
			 Report
. Each corporation that is a member of a unitary business
			 transacting business within and without Idaho is to allocate and apportion its
			 income to Idaho using a combined report pursuant to Rules
			 360 through
			 369 of these rules. See Rules
			 340 through
			 344 of these rules for the
			 principles for determining the existence of a unitary business.
			 (4-6-23)
02.
Domestic
			 International Sales Corporations
. If an affiliated group subject to the
			 income tax jurisdiction of Idaho owns more than fifty percent (50%) of the
			 voting power of the stock of a corporation classified as a Domestic
			 International Sales Corporation (DISC) pursuant to the provisions of Section
			 992, Internal Revenue Code, a
			 combined filing with the DISC is required. (4-6-23)
03.
Foreign Sales Corporations
.
			 If an affiliated group subject to the income tax jurisdiction of Idaho owns
			 more than fifty percent (50%) of the voting power of the stock of a corporation
			 classified as a Foreign Sales Corporation (FSC) pursuant to the provisions of
			 Section 922, Internal
			 Revenue Code, a combined filing with the FSC is required. (4-6-23)
04.
Intercompany Transactions
.
			 If a return is filed on a combined basis, the intercompany transactions are to
			 be eliminated to the extent necessary to properly reflect combined income and
			 to properly compute the apportionment factor. (4-6-23)
a. Dividends received from a real estate
			 investment trust or a regulated investment company and not included in the
			 pre-apportionment tax base as a result of the federal deduction for dividends
			 paid allowed to the dividend payor are not eliminated as intercompany
			 transactions in computing combined income. (4-6-23)
b. Internal Revenue Code Section
			 1248 Dividends. (4-6-23)
i. Taxpayers Using the Worldwide Filing
			 Method. A corporation included in a worldwide combined group is to treat
			 Section 1248
			 dividends as dividends for Idaho income tax purposes. An intercompany dividend
			 elimination is allowed to the extent dividends received are paid from current
			 or prior year earnings previously included in income subject to apportionment.
			 (4-6-23)
ii. Taxpayers Using the
			 Water's Edge Filing Method. A corporation included in a water's edge combined
			 group is to treat Section
			 1248 dividends as dividends that
			 qualify for the dividend exclusion allowed by Section
			 63-3027C(c)(1),
			 Idaho Code. (4-6-23)
c.
			 Dividends received from a stock insurance subsidiary and deducted by a mutual
			 insurance holding company or an intermediate holding company pursuant to
			 Section 41-3821, Idaho Code, are not
			 eliminated as intercompany transactions in computing combined income.
			 (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.605 - ELEMENTS OF A WORLDWIDE COMBINED REPORT

Current through August 31, 2023
Section
				63-3027(22),
				Idaho Code
01.
Income: In
			 General
. Income for the worldwide combined group is to be computed on
			 the same basis as taxable income subject to modifications contained in Sections
			 63-3022 and
			 63-3027, Idaho Code, and related
			 rules. (4-6-23)
02.
Income:
			 Foreign Corporations Included in a Federal Consolidated Return
.
			 Corporations incorporated outside the United States that are included in a
			 federal consolidated return is to include in the combined report the taxable
			 income reported on the federal consolidated return. (4-6-23)
03.
Income: Foreign Corporations Not
			 Included in a Federal Consolidated Return
. Corporations incorporated
			 outside the United States that are not included in a federal consolidated
			 return, is to include in the combined report either the amount in Subsection
			 605.03.a. or 605.03.b. as the
			 equivalent of taxable income. The option chosen must be used for all unitary
			 foreign corporations not included in a federal consolidated return. (4-6-23)
a. The taxpayer may use the financial net
			 income before income taxes as reported to the United States Securities and
			 Exchange Commission (SEC) if required to file with the SEC. If not required to
			 file with the SEC, the taxpayer may use the financial net income before income
			 taxes as reported to shareholders and subject to review by an independent
			 auditor. (4-6-23)
b. The taxpayer
			 may use the financial net income of each foreign corporation adjusted to
			 conform to tax accounting standards as would be required by the Internal
			 Revenue Code if the corporation were a domestic corporation required to file a
			 federal income tax return. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.620 - ATTRIBUTING INCOME OF CORPORATIONS THAT ARE MEMBERS OF PARTNERSHIPS

Current through August 31, 2023
Section
				63-3027, Idaho Code
01.
In General
. If a corporation
			 required to file an Idaho income tax return is a member of an operating
			 partnership, the corporation is to report its Idaho taxable income, including
			 its share of income from the partnership, in accordance with this rule. For
			 purposes of this rule, the term partnership includes a joint venture.
			 (4-6-23)
02.
Transacting
			 Business
. A corporation is transacting business in Idaho if it is a
			 partner in a partnership that is transacting business in Idaho even though the
			 corporation has no other contact with Idaho. In this case, both the partnership
			 and the corporation have an Idaho filing requirement. (4-6-23)
03.
Multistate Partnerships
. If
			 a partnership operates in more than one state, its income is to be apportioned
			 and allocated on the partnership return as if the partnership were a
			 corporation. The allocation and apportionment rules of Section
			 63-3027, Idaho Code, and related
			 rules apply to the partnership. (4-6-23)
04.
Partnership Income as Apportionable
			 Income of the Partner
. (4-6-23)
a.
			 Income. If the income or loss of a partnership is apportionable income or loss
			 to a corporate partner, its share of this net apportionable income or loss is
			 to be apportioned together with all other net apportionable income or loss of
			 the corporation. Apportionable income or loss is defined by Section
			 63-3027(1)(a),
			 Idaho Code, and Rules
			 330 through
			 336 of these rules.
			 (4-6-23)
b. Factors. A corporate
			 partner's share of the partnership property, payroll, and sales after
			 intercompany eliminations, is to be included in the numerators and the
			 denominators of the partner's property, payroll, and sales factors when
			 computing its apportionment formula. The partner's share of the partnership's
			 property, payroll, and sales is determined by attributing the partnership's
			 property, payroll, and sales to the partner in the same proportion as its
			 distributive share of partnership income if reporting net income for the
			 taxable year or in the same proportion as its distributive share of partnership
			 losses if reporting a net loss for the taxable year. Generally, the
			 partnership's property, payroll, and sales includable in the corporation's
			 factor computations is determined in accordance with Section
			 63-3027, Idaho Code, and related
			 rules. To determine how the sales attribution rules of Sections
			 63-3027(12) and
			 (13), Idaho Code, apply to the sales factor
			 of the corporate partner, the sales of the partnership are treated as if they
			 were sales of the corporation. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.640 - WATER'S EDGE: MAKING THE ELECTION

Current through August 31, 2023
Section
				63-3027B, Idaho Code
01.
In General
. Rules
			 640 through
			 649 of these rules apply to
			 taxpayers electing to use the water's edge filing method. To the extent that
			 these rules conflict with any other rules pursuant to this Act, Rules
			 640 through
			 649 of these rules control.
			 (4-6-23)
02.
The
			 Election
. The water's edge election is made for purposes of determining
			 which corporations are included in a combined group for Idaho income tax
			 purposes. If a corporation is not part of a unitary group for which a combined
			 report is required, the corporation cannot make the water's edge election. The
			 election must be made in accordance with Sections
			 63-3027B through
			 63-3027E, Idaho Code, and Rules
			 640 through
			 649 of these rules. (4-6-23)
a. The election may be made for a year
			 beginning on or after January 1, 1993. The election must be filed with the
			 original tax return for the first year of the election. If the water's edge
			 group changes in a subsequent year through the acquisition or disposition of a
			 corporation with an Idaho filing requirement, a copy of the election is to be
			 attached to the tax return for such taxable year and the changes to the water's
			 edge group is to be noted on the form. See Rule
			 643 of these rules for Change of
			 Election. (4-6-23)
b. Any
			 corporation included in the unitary group that files with Idaho a consent to
			 the reasonable production of documents may make the election on behalf of the
			 group. An election made by any member of a unitary group binds all other
			 members regardless of any changes in the unitary group in later taxable years.
			 (4-6-23)
c. The election must be
			 made on a form provided by the Tax Commission and include a list of each
			 corporation required to file an Idaho income tax return. The election must be
			 signed by an individual authorized to bind all companies to the election.
			 (4-6-23)
d. Idaho taxpayers having
			 a valid water's edge election is to compute Idaho taxable income in accordance
			 with Sections
			 63-3027 and
			 63-3022, Idaho Code, except as
			 modified by Sections
			 63-3027B through
			 63-3027E, Idaho Code, and Rules
			 640 through
			 649 of these rules.
			 (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.641 - WATER'S EDGE: ELEMENTS OF A COMBINED REPORT

Current through August 31, 2023
Section
				63-3027B, Idaho Code
01.
Income
. Income for the
			 water's edge combined group is computed on the same basis as taxable income
			 subject to modifications contained in Sections
			 63-3022 and
			 63-3027, Idaho Code, and related
			 rules. Intercompany transactions between members of the water's edge combined
			 group is to be eliminated to the extent necessary to properly reflect combined
			 income. Transactions between a member of the water's edge combined group and a
			 nonincluded affiliated corporation will be included in the computation of the
			 income of the water's edge combined group. (4-6-23)
02.
Factors
. The rules for
			 inclusion, value, and attribution of apportionment factors by location for the
			 water's edge combined group is to be determined pursuant to Section
			 63-3027, Idaho Code, and related
			 rules. Intercompany transactions between members of the group is to be
			 eliminated to the extent necessary to properly compute the apportionment
			 factors of the water's edge combined group. Transactions between a member of
			 the water's edge combined group and a nonincluded affiliated corporation is to
			 be included, if appropriate, when determining apportionment factors. Dividends,
			 to the extent included in apportionable income, is to be included in the sales
			 factor computation. (4-6-23)
03.
Foreign Corporations Filing Protective Returns
. A foreign
			 corporation filing a protective Form 1120-F return will not be deemed to be
			 filing a federal income tax return for purposes of taking into account the
			 income and apportionment factors of affiliated corporations in a unitary
			 relationship with the taxpayer solely on the basis of filing this federal
			 return. If subsequent to the filing of the protective 1120-F return it is
			 determined that the foreign corporation had income effectively connected with
			 the United States and was required to file a federal income tax return, the
			 income and apportionment factors of the foreign corporation is required to be
			 included in the combined report of the unitary group for such taxable year and
			 an Idaho return or amended return may be required. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.642 - WATER'S EDGE: LEGAL AND PROCEDURAL REQUIREMENTS

Current through August 31, 2023
Section
				63-3027B, Idaho Code
01.
Required Form
. Proper filing
			 of the water's edge election and consent for production of records must be made
			 on the form provided by the Tax Commission and included in the original income
			 tax return for the first tax year to which the election applies.
			 (4-6-23)
02.
Required
			 Information
. The following information must be included with each year's
			 tax return for which a water's edge election applies: (4-6-23)
a. A complete list of all affiliated
			 corporations, foreign and domestic, of which more than twenty percent (20%) of
			 the voting stock is, directly or indirectly, owned or controlled by a common
			 owner; (4-6-23)
b. Identifying
			 information for each member of the water's edge combined group, including:
			 federal identification number, primary business activities, percent of
			 ownership by members of the combined group, and dates of acquisition or
			 disposition of interest; (4-6-23)
c. A copy of the federal consolidated return,
			 if applicable; and (4-6-23)
d. A
			 schedule of taxable income for each possession corporation excluded from the
			 water's edge group pursuant to Section
			 63-3027B(a),
			 Idaho Code. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.643 - WATER'S EDGE: CHANGE OF ELECTION

Current through August 31, 2023
Section
				63-3027C, Idaho Code
01.
In General
. Except as
			 provided in Section
			 63-3027C(a) (1),
			 Idaho Code, the taxpayer must submit a written petition to the Tax Commission
			 and be granted written permission to change its reporting method from water's
			 edge for any subsequent tax year. (4-6-23)
a.
			 A change in the reporting method includes conversion from the water's edge
			 filing method to the worldwide filing method as well as the addition of
			 companies previously omitted or the exclusion of companies previously included
			 in the water's edge combined group, except in the case of companies acquired or
			 disposed of during the taxable year. (4-6-23)
b. The Tax Commission may determine that one
			 or more affiliated corporations should be included or excluded from the water's
			 edge combined group. Income and apportionment factors is to be modified
			 accordingly. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.644 - WATER'S EDGE: DISREGARDING THE ELECTION

Current through August 31, 2023
Sections
				63-3027B and
				63-3027C, Idaho Code. If a
				taxpayer fails to comply with Sections
				63-3027B through
				63-3027E, Idaho Code, and Rules
				640 through
				649 of these rules, the Tax
				Commission may disregard the water's edge election or recompute the water's
				edge combined income and apportionment factors, and assert penalties pursuant
				to Section
				63-3046, Idaho Code, and Rules
				400 through
				419 of the Administration and
				Enforcement Rules. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.645 - WATER'S EDGE: TREATMENT OF DIVIDENDS

Current through August 31, 2023
Section
				63-3027C, Idaho Code
01.
Dividends Received from Payors
			 Incorporated Outside the United States
. (4-6-23)
a. Dividends received from payors who are
			 incorporated outside the fifty (50) states and District of Columbia but are not
			 included in the combined report are treated as apportionable income.
			 (4-6-23)
b. As provided in Section
			 63-3027C(e)(1),
			 Idaho Code, amounts included in income under sections
			 951 and
			 951A of the Internal Revenue Code
			 are treated as dividends from payors outside the fifty (50) states and District
			 of Columbia. (4-6-23)
c. In order
			 to avoid taxing income that had previously been included in Idaho apportionable
			 income in a prior tax year, the remaining portion of the dividend that was not
			 excluded from Idaho apportionable income under Section
			 63-3027C(c)(3),
			 Idaho Code, is excluded from Idaho apportionable income if the taxpayer can
			 prove that the income was previously included in Idaho apportionable income in
			 a prior tax year. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.646 - WATER'S EDGE: DOMESTIC DISCLOSURE SPREADSHEET

Current through August 31, 2023
Section
				63-3027E, Idaho Code
01.
Filing Requirements
. The
			 domestic disclosure spreadsheet required by Section
			 63-3027E(b),
			 Idaho Code, must be filed no later than six (6) months after filing the
			 original return unless the taxpayer makes a declaration to forego the filing of
			 the spreadsheet. The declaration is made on a year-by-year basis.
			 (4-6-23)
02.
Spreadsheet
			 Information
. The spreadsheet information must be submitted using the
			 forms contained in the Tax Commission's "Idaho Water's Edge Election Pamphlet"
			 or on identically formatted forms that disclose the same information.
			 (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.700 - CREDIT FOR INCOME TAXES PAID ANOTHER STATE OR TERRITORY: IN GENERAL

Current through August 31, 2023
Section
				63-3029, Idaho Code
01.
Taxes Not Eligible for the
			 Credit
. If any tax or portion thereof is imposed on capital stock,
			 retained earnings, stock values, or a basis other than income, the tax is not
			 eligible for the credit. The credit is not allowed for income taxes imposed by
			 another state on income not taxed by Idaho. (4-6-23)
02.
Credit Calculated on a
			 State-by-State Basis
. The credit and credit limitations are to be
			 calculated on a state-by-state basis. The taxpayer may not aggregate the income
			 taxed by other states or the taxes paid to the other states for purposes of
			 calculating the credit and its limitations. (4-6-23)
03.
Income Tax Payable to Another
			 State
. The income tax payable to another state is to be the tax paid
			 after the application of all credits. The tax paid to the other state must be
			 for the same taxable year that the credit is claimed. Tax paid to cities or
			 counties does not qualify for the credit. (4-6-23)
04.
Limitations
. The credit for
			 taxes paid to another state is limited as follows: (4-6-23)
a. The credit allowed may not exceed the
			 amount of tax actually paid to the other state. This includes the amount paid
			 by a qualifying individual and the amount paid for such individual by an S
			 corporation, partnership, limited liability company, estate, or trust.
			 (4-6-23)
b. If an individual
			 receives a refund due to a refundable credit for all or part of the income tax
			 paid by the pass-through entity, the amount of the refund attributable to the
			 refundable credit reduces the income tax paid by the pass-through entity.
			 (4-6-23)
c. The credit may not
			 exceed the proportion of the tax otherwise due to Idaho that the adjusted gross
			 income of the individual derived from sources in the other state as modified by
			 Chapter 30, Title 63, Idaho Code, bears to total adjusted gross income for the
			 individual so modified. (4-6-23)
d.
			 The credit allowed to an estate or trust may not exceed the proportion of the
			 tax otherwise due to Idaho that the federal total income of the estate or trust
			 derived from sources in the other state and taxed by that state bears to the
			 federal total income of the estate or trust. (4-6-23)
i. Federal total income of the estate or
			 trust derived from sources in the other state is to be determined using the
			 Idaho sourcing rules applicable to nonresidents found in Section
			 63-3026A, Idaho Code and related
			 rules. Income derived from the ownership or disposition of any interest in real
			 or tangible personal property located in the other state is to be considered to
			 be income derived from sources in the other state. Interest income earned on a
			 bank account generally would not be income derived from sources in the other
			 state as provided in Rule
			 266 of these rules.
			 (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.701 - CREDIT FOR INCOME TAXES PAID ANOTHER STATE OR TERRITORY: PART-YEAR RESIDENTS

Current through August 31, 2023
Section
				63-3029, Idaho Code
01.
Examples
. Available at
			 Income Tax Rules Examples. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.705 - CREDIT FOR CONTRIBUTIONS TO EDUCATIONAL INSTITUTIONS FOR TAXABLE YEARS BEGINNING AFTER 2010

Current through August 31, 2023
Section
				63-3029A, Idaho Code
01.
Pass-Through Entities
. The
			 credit may be earned by a partnership, S corporation, estate or trust and
			 passed through to the partner, shareholder, or beneficiary. (4-6-23)
02.
Other Limitations
. (4-6-23)
a. This credit plus other nonrefundable
			 credits may not reduce the taxpayer's tax liability below zero (0).
			 (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.710 - IDAHO INVESTMENT TAX CREDIT: IN GENERAL

Current through August 31, 2023
Section
				63-3029B, Idaho Code
01.
Credit Allowed
. The
			 investment tax credit allowed by Section
			 63-3029B, Idaho Code, applies to
			 investments made during tax years beginning on and after January 1, 1982, that
			 qualify pursuant to Sections
			 46(c),
			 47, and
			 48, Internal Revenue Code, as in
			 effect prior to amendment by
			 Public Law
			 101-508. Investments must also meet the
			 requirements of Section
			 63-3029B, Idaho Code.
			 (4-6-23)
02.
Limitations
. The investment tax credit allowable in any taxable
			 year will be limited by the following: (4-6-23)
a. Tax liability. (4-6-23)
i. For taxable years beginning on or after
			 January 1, 2000, the credit claimed may not exceed fifty percent (50%) of the
			 tax after credit for taxes paid another state. (4-6-23)
ii. For taxable years beginning on or after
			 January 1, 1995 and before January 1, 2000, the credit claimed may not exceed
			 forty-five percent (45%) of the tax after credit for taxes paid another state.
			 (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.711 - IDAHO INVESTMENT TAX CREDIT: TAXPAYERS ENTITLED TO THE CREDIT

Current through August 31, 2023
Section
				63-3029B, Idaho Code
01.
Unitary Taxpayers
. A
			 corporation included as a member of a unitary group may elect to share the
			 investment tax credit it earns but does not use with other members of the
			 unitary group. Before the corporation may share the credit, it must claim the
			 investment tax credit to the extent allowable against its tax liability.
			 (4-6-23)
a. The credit available to be shared
			 is the amount of investment tax credit carryover and credit earned for the
			 taxable year that exceeds the limitation provided in Section
			 63-3029B(4),
			 Idaho Code. The limitation is applied against the tax computed for the
			 corporation that claims the credit. Credit shared with another member of the
			 unitary group reduces the carryforward. (4-6-23)
b. In the taxable year when a corporation
			 that earned the investment tax credit is acquired or disposed of, only a
			 portion of the tax of the other members of the unitary group may be offset with
			 shared investment tax credit from that corporation. To determine the allowable
			 portion of the tax, a percentage is calculated by dividing the number of days
			 that the corporation that earned the investment tax credit is included in the
			 unitary group's taxable year by the total number of days in the taxable year.
			 The tax for each member with an Idaho filing requirement is multiplied by the
			 percentage. The result is the amount of tax that can be offset with a share of
			 the credit, subject to other limitations imposed by law or related rules.
			 (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.715 - IDAHO INVESTMENT TAX CREDIT: RECAPTURE

Current through August 31, 2023
Section
				63-3029B, Idaho Code
01.
In General
. If a taxpayer is
			 claiming or has claimed the investment tax credit for property sold or
			 otherwise disposed of, or that ceases to qualify pursuant to Section
			 63-3029B, Idaho Code, prior to
			 being held five (5) full years, a recomputation of the credit will be made.
			 (4-6-23)
02.
Recomputation of
			 the Investment Tax Credit
. (4-6-23)
a.
			 The recomputation of the credit and any recapture of prior credits is made
			 pursuant to the Internal Revenue Code and Treasury Regulations for the taxable
			 year in which the property is disposed of or ceases to qualify.
			 (4-6-23)
b. The recapture is
			 computed by multiplying the credit by the applicable recapture percentage in
			 Subsection 715.04. (4-6-23)
c. The recapture of credit previously claimed
			 against tax in prior taxable years is an addition to tax in the taxable year in
			 which the property is disposed of or ceases to qualify. The addition to tax
			 does not affect the computation of limitations used to determine the amount of
			 investment tax credit or any other Idaho credit that may be claimed in the year
			 of the recapture. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.716 - IDAHO INVESTMENT TAX CREDIT: RECORD-KEEPING REQUIREMENTS

Current through August 31, 2023
Section
				63-3029B, Idaho Code
01.
Information Required
. Each
			 taxpayer must retain and make available, on request, records for each item of
			 property included in the computation of the investment tax credit claimed on an
			 income tax return subject to examination. The records must include all of the
			 following: (4-6-23)
a. A description of the
			 property; (4-6-23)
b. The asset
			 number assigned to the item of property, if applicable; (4-6-23)
c. The acquisition date and date placed in
			 service; (4-6-23)
d. The basis of
			 the property; (4-6-23)
e. The class
			 of the property for recovery property or the estimated useful life for
			 nonrecovery property; (4-6-23)
f.
			 The designation as new or used property; (4-6-23)
g. The location and utilization (the usage
			 both in and outside Idaho) of the property; (4-6-23)
h. The retirement, disposition, or date
			 transferred out of Idaho, or date no longer used in Idaho, if applicable; and
			 (4-6-23)
i. The reason for
			 acquisition if acquired prior to January 1, 1995. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.719 - IDAHO INVESTMENT TAX CREDIT: PROPERTY TAX EXEMPTION IN LIEU OF

Current through August 31, 2023
Section
				63-3029B, Idaho Code
01.
In General
. Beginning with
			 calendar year 2003, a qualifying taxpayer may elect a two (2) year property tax
			 exemption on personal property placed in service during the year. Property
			 placed in service prior to January 1, 2003, does not qualify for the exemption.
			 The personal property must be qualified investment as defined in Section
			 63-3029B, Idaho Code, and Rules
			 710 through
			 716 of these rules. If the property
			 tax exemption is elected on an item of personal property, the taxpayer may not
			 earn the investment tax credit on that item. The election is irrevocable.
			 (4-6-23)
02.
Terms
. As
			 used in this rule: (4-6-23)
a. Qualifying
			 Taxpayer. A taxpayer must meet both of the following requirements to qualify
			 for the property tax exemption on personal property. (4-6-23)
i. The taxpayer's rate of charge or rate of
			 return must not be regulated or limited by federal or state law. For example,
			 if a corporation's rate of return is set by the Public Utilities Commission,
			 that corporation is to not be eligible to claim the property tax exemption on
			 any personal property it may place in service. The corporation may claim
			 investment tax credit on the property if the property is qualified investment
			 under Section
			 63-3029B, Idaho Code. Each
			 corporation included in a unitary group is to determine whether its rate of
			 charge or rate of return is regulated or limited by federal or state law based
			 solely on its own activities. (4-6-23)
ii. The taxpayer must have had negative Idaho
			 taxable income in the second preceding taxable year.
			 (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.720 - CREDIT FOR IDAHO RESEARCH ACTIVITIES: IN GENERAL

Current through August 31, 2023
Section
				63-3029G, Idaho Code
01.
Definitions
. The Idaho
			 credit is computed using the same definitions of qualified research expenses,
			 qualified research, basic research payments, and basic research as are found in
			 Section 41, Internal
			 Revenue Code, except only the amounts related to research conducted in Idaho
			 qualify for the Idaho credit. If an expense does not qualify for the federal
			 credit under Section 41, Internal
			 Revenue Code, it will not qualify for purposes of the Idaho credit.
			 (4-6-23)
02.
Limitations
. The credit for Idaho research activities allowable in
			 any taxable year is limited as follows: (4-6-23)
a. Tax Liability. The total amount of any
			 credit for Idaho research activities claimed during a taxable year may not
			 exceed one hundred percent (100%) of the tax, after allowing all other income
			 tax credits that may be claimed before the credit for Idaho research
			 activities, regardless of whether the credit for Idaho research activities
			 results from a carryover earned in prior years, the current year, or both. See
			 Rule 799 of these rules for the priority
			 order for nonrefundable credits. (4-6-23)
b. Unitary Taxpayers. Limitations apply to
			 each taxpayer according to its own tax liability. Each corporation in a unitary
			 group is a separate taxpayer. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.721 - CREDIT FOR IDAHO RESEARCH ACTIVITIES: ELECTIONS

Current through August 31, 2023
Section
				63-3029G, Idaho Code
01.
Election to Be Treated as a
			 Start-Up Company
. Regardless of whether a taxpayer qualifies as a
			 start-up company for purposes of the federal credit for increasing research
			 activities under Section
			 41, Internal Revenue Code, a
			 taxpayer may elect to be treated as a start-up company for the credit for Idaho
			 research activities. (4-6-23)
a. The election
			 once made is irrevocable. (4-6-23)
b. The election is made by checking the
			 appropriate box on Form 67. (4-6-23)
c. A taxpayer who makes the election under
			 Section 63-3029G, Idaho Code, to be
			 treated as a start-up company must use the fixed-base percentage that would be
			 used by the taxpayer if the taxpayer had qualified as a start-up company for
			 purposes of the federal credit under Section
			 41, Internal Revenue Code.
			 (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.723 - CREDIT FOR IDAHO RESEARCH ACTIVITIES: RECORD-KEEPING REQUIREMENTS

Current through August 31, 2023
Section
				63-3029G, Idaho Code
01.
Information Required
. Each
			 taxpayer must retain and make available, on request, records for each item
			 included in the computation of the credit for Idaho research activities claimed
			 on an Idaho income tax return. The records must include all of the following:
			 (4-6-23)
a. Verification that the research was
			 conducted in Idaho; (4-6-23)
b.
			 Verification that wages included in the computation were for qualified service
			 performed by an employee in Idaho; (4-6-23)
c. Verification that supplies included in the
			 computation were used for research conducted in Idaho; (4-6-23)
d. Verification that contract research
			 expenses were for research conducted in Idaho; (4-6-23)
e. Verification that the research activities
			 meet the definition of qualified research; and (4-6-23)
f. Verification that the amounts included in
			 the Idaho computation are includable in the computation of the federal credit
			 allowed by Section 41, Internal
			 Revenue Code. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.730 - CREDIT FOR CONTRIBUTIONS TO IDAHO YOUTH FACILITIES, REHABILITATION FACILITIES AND NONPROFIT SUBSTANCE ABUSE CENTERS

Current through August 31, 2023
Section
				63-3029C, Idaho Code
01.
Qualified Contributions
.
			 Contributions must be made in cash or in kind during the taxable year the
			 credit is claimed. Unpaid pledges do not qualify as contributions. Fees for
			 services provided, room and board, and similar charges are not contributions.
			 (4-6-23)
02.
Pass-Through
			 Entities
. The credit may be earned by a partnership, S corporation,
			 estate or trust and passed through to the partner, shareholder, or beneficiary.
			 (4-6-23)
03.
Effect on
			 Itemized Deductions
. The credit allowed does not reduce the amount of
			 charitable contributions that may be included in itemized deductions.
			 (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.750 - BROADBAND EQUIPMENT INVESTMENT CREDIT: IN GENERAL

Current through August 31, 2023
Section
				63-3029I, Idaho Code
01.
Unitary Taxpayers
.
			 Limitations apply to each taxpayer according to its own tax liability. Each
			 corporation in a unitary group is a separate taxpayer. (4-6-23)
02.
Transferred Credit
.
			 Limitations apply to each transferee as if the transferee had earned the
			 credit. (4-6-23)
i. The fourteen (14) year
			 carryover period provided by section
			 63-3029I(7),
			 Idaho Code, extends throughout the fourteen (14) taxable years following the
			 year in which the equipment was installed. The fourteen (14) year carryover
			 period begins to run regardless of whether the taxpayer has sought and received
			 approval from the Idaho public utilities commission (PUC). (4-6-23)
ii. Once a taxpayer has received the approval
			 order from the PUC, the broadband tax credit may be claimed or transferred. If
			 the statute of limitations has expired for filing a return to claim the credit
			 for the taxable year of the installation, the taxpayer cannot claim any credit
			 for that taxable year, but must calculate how much of the credit the taxpayer
			 could have used to determine the amount of credit available to carry forward
			 pursuant to section
			 63-3029I(7),
			 Idaho Code. (4-6-23)
iii. Example:
			 A calendar year filer installed qualifying equipment on July 20, 2001. However,
			 it was not until 2013 that the taxpayer sought and received the approval order
			 from the PUC. The fourteen (14) year carryover period already began to run
			 based on the installation date and will expire at the end of the 2015 taxable
			 year. On March 10, 2013 the taxpayer is preparing his tax returns and
			 considering how much broadband credit is available and to which taxable years
			 it could be applied to. The taxpayer can file an amended return to claim the
			 credit starting with taxable year 2009 (prior years would be out of the statute
			 of limitations for filing an amended return assuming all returns had been
			 timely filed and no other special circumstances had held the period open). The
			 taxpayer must look back to taxable year 2001 (the year of installation) to see
			 how much credit the taxpayer could have used in each taxable year up to 2009 to
			 determine how much credit carryover amount is still available pursuant to the
			 carryover limitations of Section
			 63-3029I(7),
			 Idaho Code. The taxpayer must use up or transfer any unused credit before
			 taxable year 2016; after taxable year 2015, the carry forward period will
			 expire and any unused credit will no longer be available for the taxpayer to
			 apply or transfer. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.753 - BROADBAND EQUIPMENT INVESTMENT CREDIT: RECORD-KEEPING REQUIREMENTS

Current through August 31, 2023
Section
				63-3029I, Idaho Code
01.
Information Required
. Each
			 taxpayer must retain and make available, on request, records for each item of
			 property included in the computation of the broadband equipment investment
			 credit claimed on an income tax return subject to examination. The records must
			 include all of the following: (4-6-23)
a. The
			 order from the Idaho Public Utilities Commission confirming that the installed
			 equipment is qualified broadband equipment. (4-6-23)
b. A description of the property;
			 (4-6-23)
c. The asset number
			 assigned to the item of property, if applicable; (4-6-23)
d. The acquisition date and date placed in
			 service; (4-6-23)
e. The basis of
			 the property; and (4-6-23)
f. The
			 retirement, disposition, or date transferred out of Idaho, or date no longer
			 used in Idaho, if applicable. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.771 - GROCERY CREDIT: TAXABLE YEARS BEGINNING AFTER DECEMBER 31, 2007

Current through August 31, 2023
Section
				63-3024A, Idaho Code
01.
Residents
. (4-6-23)
a. The additional twenty dollar ($20) credit
			 may not be claimed for other dependents who are age sixty-five (65) or older.
			 (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.775 - CREDIT FOR LIVE ORGAN DONATION EXPENSES

Current through August 31, 2023
Section
				63-3029K, Idaho Code
01.
Live Organ Donation
			 Expenses
. Qualifying expenses is to be directly related to a live organ
			 donation by the taxpayer or by a dependent of the taxpayer and includes the
			 following: (4-6-23)
a. The unreimbursed cost
			 of travel paid by the taxpayer to and from the place where the donation
			 operation occurred. (4-6-23)
b.
			 Unreimbursed lodging expenses paid by the taxpayer. (4-6-23)
c. Wages or other compensation lost because
			 of the taxpayer's absence from work during the donation procedure and
			 convalescence. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.785 - CREDITS: PASS-THROUGH ENTITIES

Current through August 31, 2023
Section
				63-3029(a), Idaho
				Code
01.
In General
. A
			 credit earned by a partnership, S corporation, estate, or trust generally is
			 claimed on the income tax returns of the partners, shareholders, or
			 beneficiaries of the entity. (4-6-23)
a.
			 Partnerships. A credit passes through to a partner based on that partner's
			 distributive share of partnership profits. (4-6-23)
b. S Corporations. A credit passes through to
			 a shareholder based on that shareholder's pro rata share of income or loss.
			 (4-6-23)
c. Estates and Trusts. A
			 credit passes through to a beneficiary in the same ratio that income is
			 allocable to that beneficiary. (4-6-23)
d. Idaho credits may not pass through to
			 partners or owners based on special allocations. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.790 - TRANSFER OF CREDIT: IN GENERAL

Current through August 31, 2023
Sections
				63-3029I Idaho Code
01.
Terms
. For purposes of Rules
			 790 through
			 795 of these rules, the following
			 terms have the stated meanings: (4-6-23)
a.
			 Transferor. The taxpayer who earns the credit and sells, conveys, or transfers
			 the credit to another taxpayer are referred to as the transferor.
			 (4-6-23)
b. Transferee. The
			 taxpayer who receives the credit from the transferor or intermediary is
			 referred to as the transferee. (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.791 - TRANSFER OF CREDIT: NOTIFICATION OF INTENDED TRANSFER

Current through August 31, 2023
Sections
				63-3029I Idaho Code
01.
Timing of Notification
. A
			 taxpayer who intends to transfer qualified credit is to notify the Tax
			 Commission in writing of its intent to transfer the credit at least sixty (60)
			 days prior to the date of the transfer. A transfer may not take place prior to
			 the Tax Commission providing its response as to the amount of credit available
			 and the years the credit may be carried forward. (4-6-23)
02.
Information Required
. A
			 transferor or intermediary is to notify the Tax Commission by submitting the
			 following information on a form prescribed by the Tax Commission: (4-6-23)
a. Name, address, and federal employer
			 identification number of the transferor or intermediary; (4-6-23)
b. Name, address, and federal employer
			 identification number of the transferee; (4-6-23)
c. Type of credit to be transferred;
			 (4-6-23)
d. Amount of credit to be
			 transferred; (4-6-23)
e. Date of
			 intended transfer; (4-6-23)
f.
			 Signature of authorized individual for transferor or intermediary; and
			 (4-6-23)
g. A copy of the Idaho
			 Form 68, Idaho Broadband Equipment Investment Credit and required schedules for
			 each tax year the credit being transferred was earned.
			 (4-6-23)
Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.01 - INCOME TAX ADMINISTRATIVE RULES › Section 35.01.01.793 - TRANSFER OF CREDIT: TRANSFEREE

Current through August 31, 2023
Sections
				63-3029I Idaho Code
01.
Tax Year Credit Available
. A
			 transferee may first claim the transferred credit on an income tax return
			 originally filed during the calendar year in which the transfer takes place.
			 However, if the transferee did not claim the transferred credit on his original
			 return filed during the calendar year in which the transfer takes place, he may
			 not amend such return to claim the credit for that tax year. (4-6-23)
02.
Carryover Period
. If a
			 credit is transferred, the transferee is entitled to any remaining carryover
			 period that would have been allowed to the transferor or intermediary had the
			 credit not been transferred. The Tax Commission is to verify the carryover
			 period. The carryover period approved applies to the taxable year of the
			 transferee that begins in the calendar year in which the transferor's taxable
			 year begins. (4-6-23)
03.
Examples
. Available at Income Tax Rules Examples.
			 (4-6-23)