Amends existing law to update references to the current Internal Revenue Code and to revise certain tax credits related to capital investments and research activities.

This proposed legislation is the annual tax conformity bill to update references to the Internal Revenue Code (IRC). The bill conforms the Idaho income tax code to changes made to the IRC that affect the 2025 tax year. It fully conforms Idaho to the tax changes in the One Big Beautiful Bill, including recapture of past R&E, except for bonus deprecation which Idaho has historically not conformed to. This proposed legislation also ensures that businesses cannot use the same R&E expenses for both a deduction and Idaho tax credits.