Bill > H0713

This bill amends existing law to revise provisions regarding state and local tax treatment for affected business entities. The key provisions include: 1. Allowing partnerships and S corporations to elect to become "affected business entities" that must pay a tax on their Idaho-sourced income, with certain exemptions and adjustments. 2. Requiring affected business entities to pay tax on income of members who are not Idaho residents. 3. Allowing members (individuals, corporations, and other pass-through entities) to claim credits for their share of the tax paid by the affected business entity. 4. Providing rules for carrying forward net operating losses and applying credits. 5. Specifying that the bill takes effect immediately and applies retroactively to January 1, 2021.

Budget and Finance

Revenue and Taxation Committee (H)

https://legislature.idaho.gov/sessioninfo/2022/legislation/H0713/