House Bill 438 Summary

• Amends Idaho Code Section 63-3029B to revise the income tax credit for capital investment by clarifying requirements for property situs in Idaho.

• Allows taxpayers to claim a 3% income tax credit on qualified investments, with the credit limited to 50% of tax liability and carryover available for up to 14 succeeding taxable years.

• Establishes that property must have Idaho situs during the taxable year in which the credit is claimed, defined as actual use in Idaho at any time during that taxable year.

• Requires taxpayers with property used both in and outside Idaho to compute qualified investments using either actual percentage of use in Idaho or the Idaho property factor under Section 63-3027.

• Declares an emergency and provides retroactive application to January 1, 2012.