House Bill 13 Summary

• Amends Section 63-3022F to allow Idaho taxpayers a deduction under Internal Revenue Code Section 1341 when they restore substantial amounts held under claim of right, provided the income was included in prior Idaho taxable income.

• Creates new Section 63-3029F to establish a "claim of right income repayment adjustment" credit available only when a taxpayer's federal tax liability is determined under IRC Section 1341(a).

• Calculates the credit amount as the difference between the taxpayer's actual Idaho income tax liability and what that liability would have been had the claim of right income not been included in federal gross income.

• Allows excess credits to be treated as tax overpayments and refunded or applied in the same manner as other overpayments, with restrictions preventing double-benefits if both the deduction and credit are claimed.

• Declares an emergency and makes the law retroactively effective to January 1, 2015.