Small businesses around the state could see more capital investment in their operations in upcoming years if the Idaho Legislature passes a plan introduced in the House Revenue and Taxation Committee Wednesday.
In a short hearing, House Minority Leader John Rusche, D-Lewiston, presented a plan that allows people who invest in small businesses to claim tax credits for doing so. Under Rusche’s plan, which is co-sponsored by committee chairman Rep. Dennis Lake, R-Blackfoot, and Gov. Butch Otter, individuals would receive a tax credit up to 50 percent of earned taxable income for the tax year.
The legislation would also set a trial period for the tax credit that, Rusche says, would give lawmakers time to evaluate the program's effectiveness. The window for claiming the tax credit would be open beginning retroactively on Jan. 1, 2010, until the end of 2014. The credit could only be applied toward reducing a tax burden and would not allow investors to receive refunds with their tax credits.
Only investments made in companies with less than 20 employees would qualify for the credit.
Committee members unanimously passed the bill and Lake promised he would schedule another hearing for the bill as quickly as possible.
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