Bill > H0510

This bill amends existing law regarding the treatment of state and local taxation for affected business entities, which are defined as partnerships or S corporations that elect to be subject to the tax under this section. The key provisions of the bill include: 1. Allowing affected business entities to elect to pay a tax on their Idaho-sourced income, with the tax rate matching the corporate income tax rate. 2. Allowing affected business entities to claim credits and deductions, including for any net operating losses, and to pass through those tax attributes to their members. 3. Providing a tax credit to individual members of affected business entities, equal to their pro rata share of the tax paid by the entity, to be applied against their personal income tax liability. 4. Extending the penalty, interest, and enforcement provisions of the state's income tax laws to the new tax on affected business entities. The bill has an emergency clause, making it effective retroactively to January 1, 2021.

Budget and Finance

Revenue and Taxation Committee (H)

https://legislature.idaho.gov/sessioninfo/2022/legislation/H0510/