House Bill 634 Summary

• Clarifies Section 63-3029, Idaho Code, regarding tax credits for resident individuals who pay income taxes to other states on income also subject to Idaho taxation.

• Expands the definition of "individual" to explicitly include S corporations, partnerships, limited liability companies, estates, and trusts when calculating tax credits for out-of-state income taxes paid.

• Specifies that for entities like S corporations and partnerships, the credit limitation is based on the proportion of the individual taxpayer's share of entity income reported to the other state compared to adjusted gross income modified by Idaho law.

• Clarifies that excise or franchise taxes qualify as creditable "income taxes" only if they are measured by income and allow deductions for cost of goods sold, inventory, or services rendered.

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