ID H0317

Creates a new elective tax for partnerships and S corporations that choose to become "affected business entities" by filing an election with their timely filed original return for any taxable year.

Affected business entities must pay tax by April 15 following the close of each taxable year, calculated by applying the corporate tax rate under Idaho Code section 63-3025 to their separately and nonseparately computed income derived from or connected with sources within Idaho.

Allows net losses to be carried forward to succeeding taxable years for which the entity continues to elect to be subject to this tax.

Provides that nonresident individual members are not required to file Idaho income tax returns if their only Idaho-source income is from one or more affected business entities that file and pay the tax due under this section.

Allows individual and corporate members to claim a credit against their Idaho income tax liability equal to their pro rata share of the tax paid by affected business entities, with excess credits resulting in refunds.

Becomes effective retroactively to January 1, 2021.