STATEMENT OF PURPOSE
RS29930 / H0059
This bill closes a loophole with the Idaho Investment Tax Credit (ITC) for mobile property – meaning property
used both inside and outside of Idaho. The credit is pro-rated for mobile property since the property is not
used 100% of the time in Idaho. The pro-rated calculation is done using the percentage-of-use method or the
property factor method. The percentage-of-use method has a provision to ensure a pro-rated calculation occurs
if property is placed in service in the last 90 days prior to year-end. The property factor method does not have
this 90-day provision, meaning a property placed in service on the last 90 days of the year could get the full
credit as-if the property is used 100% in Idaho. This bill makes the pro-rated calculation consistent between the
two methods by adding the 90-days provision language in the percentage-of-use method to the property factor
method.
FISCAL NOTE
The fiscal impact is estimated to be a $363,000 increase to revenue collected for the 2023 fiscal year and each
year going forward.
Contact:
Representative Jeff Ehlers
(208) 334-1000
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: 01/31/2023, 10:05 AM


Statutes affected:
Bill Text: 63-3029B