STATEMENT OF PURPOSE
RS29635 / H0713
This legislation replaces HB510 and makes technical corrections to legislation enacted in 2021 that provided
state and local tax deductions (SALT) for income taxes paid by an Affected Business Entity (ABE) on behalf
of its pass-through owners. The 2021 legislation, HB317, was a SALT workaround that allowed ABEs to
elect to pay state income taxes on behalf of their owners, making those tax payments fully deductible at the
federal level just like businesses that are not pass-through entities. Like HB510, this bill also makes the election
available to more taxpayers by including fiscal year taxpayers and ABEs with owners that are trusts or estates.
It differs from HB510 in that it allows tiered pass-through entities (entities in which other pass-through entities
are owners) to use the election. It also clarifies language used in HB510 that allowed ABEs with owners who
do not have Idaho income tax liability to qualify for the election without charging those members a tax they do
not owe. Finally, it eliminates the unintended multiple imposition of the permanent building fund excise tax
erroneously caused by HB510, so a taxpayer pays it only once.
FISCAL NOTE
This bill will have no fiscal impact to the state General Fund, local units of government, or state tax revenue
as it only changes how a taxpayer reports paying state income tax for the purposes of a federal income tax
deduction.
Contact:
Representative Jim Addis
(208) 332-1000
Laura Lantz, Idaho Society of CPAs
(208) 344-6261
DISCLAIMER: This statement of purpose and fiscal note are a mere attachment to this bill and prepared by a proponent
of the bill. It is neither intended as an expression of legislative intent nor intended for any use outside of the legislative
process, including judicial review (Joint Rule 18).
Statement of Purpose / Fiscal Note Bill SOP/FN INTRODUCED: 03/01/2022, 9:29 AM


Statutes affected:
Bill Text: 63-3026B