IDAPA 35.01.01.710 — IDAHO INVESTMENT TAX CREDIT: IN GENERAL (RULE 710)

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.
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02.
Limitations. The investment tax credit allowable in any taxable year will be limited by the
following:
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a.
Tax liability.
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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.
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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.
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b.
Unitary taxpayers. Limitations apply to each taxpayer according to its own tax liability. Each
corporation in a unitary group is a separate taxpayer.
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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.
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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.
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03.
Carryovers.
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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.
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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.
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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.
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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.
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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.
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07.
Examples. Available at Income Tax Rules Examples.
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IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.01
Idaho State Tax Commission
Income Tax Administrative Rules
Section 711
Page 99