IDAPA 35.01.01.940 — IDAHO SMALL EMPLOYER INCENTIVE ACT OF 2005 AS MODIFIED BY 2006

LEGISLATION - DEFINITIONS (RULE 940).
Title 63, Chapter 44, Idaho Code. For purposes of administering the Idaho Small Employer Incentive Act of 2005, as
modified by 2006 legislation, and Rules 940 through 944 of these rules, the following definitions apply:
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01.
Buildings and Structural Components. Buildings and structural components means buildings and
structural components of buildings as defined in Federal Treasury Regulation Section 1.48-1 for Internal Revenue
Code Section 48 repealed by Public Law 101-508.
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02.
New Plant and Building Facilities. New plant and building facilities are facilities where
employees are physically employed.
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03.
Investment in New Plant. Investment in new plant means new plant and building facilities:
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a.
That are constructed or erected by the taxpayer, or
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b.
That are acquired by the taxpayer and whose original use begins with the taxpayer after such
acquisition. Original use means the first use to which the property is put, whether or not such use corresponds to the
use of such property by the taxpayer. Property used by the taxpayer prior to its acquisition does not qualify as new
plant.
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c.
That qualify for the investment tax credit under Section 63-3029B, Idaho Code, or is a building or
structural components of buildings.
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04.
Making Capital Investments. The date capital investments are considered made will be
determined in the same manner as the date assets are considered placed in service pursuant to the federal treasury
regulations.
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05.
New Employee. A new employee cannot be created by reorganizing the business in such a manner
that the employee is reassigned to working in the project site instead of outside the project site. An employee within
Idaho transferred to a qualifying position within the project site may qualify as a new employee if his previous
position is filled by another employee creating a net new job in Idaho. An employee working outside of Idaho and
transferred to a qualifying position within the project site may also qualify as a new employee.
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06.
Project Period. The project period is a period of time that begins and ends as follows:
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a.
The project period may begin on one (1) of the following dates, but not prior to January 1, 2006:
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i.
The date of a physical change to the project site; or
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ii.
The date new employees begin providing personal services at the project site.
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b.
The project period ends at the earliest of:
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i.
The conclusion of the project,
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ii.
Ten (10) years after the beginning of the project; or
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IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.01
Idaho State Tax Commission
Income Tax Administrative Rules
Section 941
Page 125
iii.
December 31, 2030.
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07.
Project Site. The project site may include one (1) location or more than one (1) location in Idaho.
However, if more than one (1) location in Idaho is used, eighty percent (80%) or more of the investment required in
the tax incentive criteria is to be located at one (1) contiguous site.
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08.
Small Employer Investment Tax Credit. Small employer investment tax credit means the
additional income tax credit allowed by Section 63-4403, Idaho Code.
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09.
Small Employer New Jobs Tax Credit. Small employer new jobs tax credit means the additional
income tax credit for new jobs allowed by Section 63-4405, Idaho Code.
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10.
Small Employer Real Property Improvement Tax Credit. Small employer real property
improvement tax credit means the real property improvement tax credit allowed by Section 63-4404, Idaho Code.
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11.
Small Employer Tax Incentive Criteria. Small employer tax incentive criteria means the tax
incentive criteria defined in Section 63-4402(2)(j), Idaho Code. See Rule 942 of these rules for more information.
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12.
Small Employer Tax Incentives. Small employer tax incentives means the tax incentives allowed
by Title 63, Chapter 44, Idaho Code.
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