Idaho Admin. Code r. 35.01.01.941 - IDAHO SMALL EMPLOYER INCENTIVE ACT OF 2005 AS MODIFIED BY 2006 LEGISLATION: IN GENERAL
Sections 63-4401 and 63-4406, Idaho Code
01.
Pass-Through Entities. The
income tax credits may be earned by a partnership, S corporation, estate, or
trust and passed through to the partner, shareholder, or beneficiary. See Rule
785 of these rules for the method
of attributing the credits, for pass-through entities paying tax, and the
application of limitations on passthrough credits. (4-6-23)
02.
Reorganizations, Mergers and
Liquidations. The small employer investment tax credit and real property
improvement tax credits are subject to recapture in accordance with Section
47, Internal Revenue Code, as in
effect prior to the enactment of
Public Law
101-508 . Exceptions included in Section
47(b), Internal
Revenue Code, to the general recapture rules, including a mere change in the
form of conducting the trade or business and transactions to which Section
381(a), Internal
Revenue Code, applies will not cause recapture to occur so long as the property
is retained in such trade or business as qualified investment in new plant and
the taxpayer retains a substantial interest in such trade or business. To the
extent that provisions of the Internal Revenue Code allow an acquiring taxpayer
to succeed to and take into account unused investment credits of the
distributor or transferor taxpayer, such provisions apply to the acquiring
taxpayer with regard to any unused Idaho small employer investment tax credits
and real property improvement tax credits. See Rule
946 of these rules for information
related to the recapture required by an acquiring taxpayer. (4-6-23)
03.
Relocations. The relocation
from one (1) project site to a new project site within the state may not create
new eligibility for the current or any succeeding business entity.
(4-6-23)
04.
Unitary
Taxpayers. A corporation included as a member of a unitary group may
elect to share the small employer investment tax credit , real property
improvement tax credit, and new jobs tax credit it earns with other members of
the unitary group. Before the corporation may share the credit, it must claim
the credit to the extent allowable against its tax liability. The credit
available to be shared is the amount of each credit carryover and credit earned
for the taxable year that exceeds the limitations provided for each credit. 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)
Notes
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