Printer Friendly Version

     Idaho Statutes

[No Title]
TITLE 63
REVENUE AND TAXATION
CHAPTER 30
INCOME TAX
 63-3029F. Special credit available -- New employees. [effective until january 1, 2014.] (1) For the period January 1, 2011, through December 31, 2013, any rated employer under chapter 13, title 72, Idaho Code, that is not a governmental or nonprofit entity shall be allowed a credit, in an amount determined under subsection (3) of this section, against the tax imposed by this chapter, other than the tax imposed by section 63-3082, Idaho Code, for any taxable year during which the rated employer's employment of new employees increases above the taxpayer's average employment for either the prior taxable year or the average of three (3) prior taxable years, whichever is higher. No credit shall be allowed under this section unless the number of new employees equals or exceeds one (1) person. The new employee must have been hired on or after April 15, 2011, received qualifying employer-provided health care benefits as determined by the state tax commission and be employed in a county in the state of Idaho with an unemployment rate based on the benchmarked annual unemployment rate as determined by the department of labor on the date the new employee was hired of:
(a)  Ten percent (10%) or more at average annual earnings of twelve dollars ($12.00) or more per hour; or
(b)  Less than ten percent (10%) at average annual earnings of fifteen dollars ($15.00) or more per hour.
(2)  As used in this section:
(a)  The term "new employee" means a person subject to Idaho income tax withholding whether or not any amounts are required to be withheld, employed by the taxpayer in a trade or business and covered for unemployment insurance purposes under chapter 13, title 72, Idaho Code, during the taxable year for which the credit allowed by this section is claimed. A person shall be deemed to be so engaged if such person performs duties on:
(i)  A regular full-time basis; or
(ii)  A part-time basis if such person is customarily performing such duties at least twenty (20) hours per week.
No credit shall be earned unless the new employee shall have performed such duties for the taxpayer for a minimum qualifying period of nine (9) consecutive months with any part of the qualifying period ending during the taxable year for which the credit is claimed.
(b)  The provisions of paragraph (a) of this subsection notwithstanding, no credit shall be allowed for employment of persons by a taxpayer who acquires a trade or business from another taxpayer or who operates in a place of business the same or substantially identical trade or business as operated by another taxpayer within the prior twelve (12) months, except as the prior taxpayer would have qualified under the provisions of paragraph (c) of this subsection. Employees transferred from a related taxpayer shall not be included in the computation of the credit.
(c)  The number of employees during any taxable year for any taxpayer shall be the mathematical average of the number of employees reported to the Idaho department of labor for employment security purposes during the twelve (12) months of the taxable year which qualified under paragraph (a) of this subsection. In the event the business is in operation for less than the entire taxable year, the number of employees of the business for the year shall be the average number actually employed during the months of operation, providing that the qualifications of paragraph (a) of this subsection are met.
(d)  "Same or a substantially identical trade or business" means a trade or business in which the products produced or sold, or the activities conducted are the same in character and use and are produced, sold or conducted in the same manner as, or for the same types of customers as, the products or activities produced, sold or conducted in another trade or business.
(e)  The term "positive-rated employer" means an employer under the employment security law with a taxable wage rate that is less than the wage rate assigned to standard-rated employers as determined by the director of the department of labor according to section 72-1350, Idaho Code.
(f)  The term "standard-rated employer" means an employer under the employment security law assigned a standard taxable wage rate by the director of the department of labor according to section 72-1350, Idaho Code.
(g)  The term "deficit-rated employer" means an employer under the employment security law with a taxable wage rate that is higher than the wage rate assigned to standard-rated employers as determined by the director of the department of labor according to section 72-1350, Idaho Code.
(3)  For positive-rated employers the credit authorized in subsection (1) of this section shall be six percent (6%) of the gross salary paid to the eligible new employee during the initial twelve (12) months of employment and claimed during the qualifying taxable year. For standard-rated employers the credit authorized in subsection (1) of this section shall be four percent (4%) of the gross salary paid to the eligible new employee during the initial twelve (12) months of employment and claimed during the qualifying taxable year. For deficit-rated employers the credit authorized in subsection (1) of this section shall be two percent (2%) of the gross salary paid to the eligible new employee during the initial twelve (12) months of employment and claimed during the qualifying taxable year. If the credit authorized by this section exceeds the tax liability of the taxpayer, the excess shall be refunded.
(4)  To claim the credit, rated employers must attach to the employer's income tax return the taxable wage rate notice issued by the department of labor for the income tax year for which the credit is claimed.
(5)  The state tax commission shall promulgate rules in compliance with chapter 52, title 67, Idaho Code, to administer the provisions of this section.

History:
[63-3029F, added 2001, ch. 386, sec. 15, p. 1364; am. 2003, ch. 10, sec. 5, p. 27; am. 2004, ch. 347, sec. 1, p. 1038; am. 2005, ch. 23, sec. 3, p. 65; am. 2011, ch. 318, sec. 3, p. 925.]

How current is this law?

The Idaho Code is the property of the state of Idaho and is made available on the Internet as a public service. Any person who reproduces or distributes the Idaho Code for commercial purposes is in violation of the provisions of Idaho law and shall be deemed to be an infringer of the state of Idaho's copyright.

Search the Idaho Statutes