STATEMENT OF PURPOSE
RS29636 / H0714
Last year HB276 was passed to clarify that bonus depreciation taken on a federal income tax return but not
allowed on a state return does not create income under Idaho law. That legislation was effective as of January
1, 2021. Because that was a clarification of existing law it was expected to apply to all cases – both those arising
before and after January 1, 2021. Unfortunately, it has not been applied that way by the Tax Commission, which
continues to conduct audits and assess taxes under its view of the “old” law for taxes due before January 1, 2021.
This legislation reaffirms the policy enacted last year and removes ambiguities some suggest were contained in
HB276. It is retroactive to apply to all taxpayers who have filed returns consistent with this policy.
FISCAL NOTE
The Tax Commission does not have data that allows the cost of this legislation to be calculated. It says this is
uncommon but does arise occasionally. Based on the number of audits in which members of the Idaho Society
of CPAs have encountered this unfair and unintended result, it is believed the fiscal cost of this legislation will
be less than $400,000 to the state general fund.
Contact:
Representative Clark Kauffman
(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, 9:33 AM


Statutes affected:
Bill Text: 63-3022O