House Bill 510 - Summary

• Allows partnerships and S corporations to elect annually to become "affected business entities" subject to entity-level taxation under Idaho Code Section 63-3082.

• Affected business entities must pay tax by the 15th day of the fourth month following the close of each taxable year, calculated by taking Idaho-source income, applying modifications, and multiplying by the corporate tax rate.

• Members (individuals, corporations, trusts, and estates) receive credits against their own tax liability equal to their pro rata share of taxes paid by the affected business entity, with excess credits resulting in refunds.

• Nonresident individuals whose only Idaho-source income comes from affected business entities are not required to file individual income tax returns if the entity files and pays the required tax.

• The act is declared an emergency and applies retroactively to January 1, 2021.