Idaho Admin. Code r. 35.01.01.710 - IDAHO INVESTMENT TAX CREDIT: IN GENERAL
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)
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)
c. Nonrefundable credits.
The investment tax credit is a nonrefundable credit. It is applied to the
income tax liability in the priority order for nonrefundable credits described
in Rule 799 of these
rules. (4-6-23)
d. Used Property
Limitation. The term used property limitation means the one hundred fifty
thousand dollar ($150,000) limitation imposed by Section
48, Internal Revenue Code of 1986
prior to November 5, 1990. (4-6-23)
03.
Carryovers. (4-6-23)
a. Investment tax credit earned on
investments made on or after January 1, 1990, but not claimed against tax in
the year earned is eligible for a seven (7) year carryover. If a credit
carryover from these years is available to be carried into taxable years
beginning on or after January 1, 2000, the credit carryover is extended from
seven (7) years to fourteen (14) years. (4-6-23)
b. Investment tax credit earned on
investments made in taxable years beginning on or after January 1, 2000, but
not claimed against tax in the year earned is eligible for a fourteen (14) year
carryover. (4-6-23)
04.
Motor Vehicle. Motor vehicle means a self-propelled vehicle that
is registered or may be registered for highway use pursuant to the laws of
Idaho. Gross vehicle weight is determined by the manufacturer's specified gross
vehicle weight. (4-6-23)
05.
Expensed Property. The cost of property that the taxpayer elects
to expense pursuant to Section
179, Internal Revenue Code, is not
a qualified investment. (4-6-23)
06.
Bonus Depreciation. The cost
of property that the taxpayer elects to deduct as bonus first-year depreciation
pursuant to Section 168(k), Internal
Revenue Code, is not a qualified investment when the bonus first-year
depreciation was also allowed in computing depreciation for Idaho.
(4-6-23)
07.
Examples.
Available at Income Tax Rules Examples. (4-6-23)
Notes
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