Idaho Bills

Amends, repeals, and adds to existing law to repeal and replace the Idaho Parental Choice Tax Credit and the Idaho Parental Choice Tax Credit Advance Payment Fund.

The purpose of this bill is to give the state of Idaho the flexibility to increase revenue should the uncertainty concerning state and national economic conditions require considering doing so. This bill does not repeal H93. It only puts a potential one-year pause on continuing it in 2027and then resumes it in 2028.

Amends and repeals existing law to revise the income tax rate, to extend the child tax credit indefinitely, and to repeal the Parental Choice Tax Credit.

This legislation would permanently extend the child tax credit of $205 per qualifying child, and offsets that by eliminating the parental choice tax credit and adjusting the income tax rate from 5.3% to 5.325%. for individuals and corporations.

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.

Amends existing law to extend the Child Tax Credit indefinitely.

RS33273 / S1450 This legislation makes permanent the Idaho child tax credit that was enacted in 2018 and had an original sunset date of January 1, 2026. The Idaho child tax credit is a non-refundable credit of $205 per qualifying child. This legislation removes the sunset date and makes this policy permanent. This pro-family policy helps to offset some of the costs associated with raising children in Idaho.

Amends and adds to existing law to provide certain deductions to income taxes and to provide for an increased food tax credit for seniors.

This legislation brings tax relief to those who are struggling in our Idaho economy. This includes adopting the new federal tips credit and the overtime deduction. The recent federal tax bill, HR 1, provided a $6000 deduction for seniors, which helps reduce federal social security taxes they pay. However, Idaho income tax laws do not tax social security so well over half seniors will see no tax relief on their state tax return. Instead, this legislation adds a senior $50 grocery tax credit so that all seniors receive some benefit. The $50 increase combined with the $155 present credit, will offset grocery taxes paid by seniors just as a complete repeal of the grocery tax would do.

Amends, repeals, and adds to existing law to exempt the sale of certain food items from sales tax, to repeal the grocery tax credit, and to increase sales tax distribution to local governments.

This legislation repeals the sales tax on food sold for human consumption, using the definition of food products provided under the Federal Supplemental Nutrition Assistance Program (SNAP), excluding prepared food. To offset the reduction in sales tax revenue sharing amount to local units of government, the bill increases the revenue sharing percentage to those government units by the amount to keep them whole. The bill removes the tax credit associated to food purchases of $155 for individual taxpayers ($250 for itemizing).

Amends existing law to revise the total amount of tax credits available in the 2026 and 2027 tax years.

This legislation amends Section 63-3029N, Idaho Code, to revise the total annual cap on the Idaho Parental Choice Tax Credit for specific tax years. The bill sets the maximum amount of tax credits authorized for all taxpayers at $48 million for tax year 2026, $47.5 million for tax year 2027, and $50 million for each tax year thereafter. The purpose of this change is to align the parental choice tax credit program with available state revenues while preserving parental access to educational choice. The bill maintains existing program structure, eligibility requirements, prioritization criteria, and reporting safeguards, while providing budget certainty and fiscal discipline during the 2026–2027 biennium. An emergency clause is included to ensure timely implementation and alignment with the upcoming tax year.