Read the full stored bill text
LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
HOUSE
OF
REPRESENTATIVES
HOUSE
BILL
NO.
589
BY
BERCH
AN
ACT
1
RELATING
TO
TAXATION;
AMENDING
SECTION
63
-
3024,
IDAHO
CODE,
TO
REVISE
PROVI
-
2
SIONS
REGARDING
THE
IDAHO
INCOME
TAX
RATE
ON
INDIVIDUALS,
ESTATES,
AND
3
TRUSTS;
REPEALING
SECTION
63
-
3024,
IDAHO
CODE,
RELATING
TO
THE
IDAHO
4
INCOME
TAX
RATE
ON
INDIVIDUALS,
ESTATES,
AND
TRUSTS;
AMENDING
CHAPTER
5
30,
TITLE
63,
IDAHO
CODE,
BY
THE
ADDITION
OF
A
NEW
SECTION
63
-
3024,
6
IDAHO
CODE,
TO
ESTABLISH
PROVISIONS
REGARDING
THE
IDAHO
INCOME
TAX
RATE
7
ON
INDIVIDUALS,
ESTATES,
AND
TRUSTS;
AMENDING
SECTION
63
-
3025,
IDAHO
8
CODE,
TO
REVISE
PROVISIONS
REGARDING
THE
IDAHO
INCOME
TAX
RATE
ON
CORPO
-
9
RATIONS;
REPEALING
SECTION
63
-
3025,
IDAHO
CODE,
RELATING
TO
THE
IDAHO
10
INCOME
TAX
RATE
ON
CORPORATIONS;
AMENDING
CHAPTER
30,
TITLE
63,
IDAHO
1
1
CODE,
BY
THE
ADDITION
OF
A
NEW
SECTION
63
-
3025,
IDAHO
CODE,
TO
ESTABLISH
12
PROVISIONS
REGARDING
THE
IDAHO
INCOME
TAX
RATE
ON
CORPORATIONS;
AND
13
PROVIDING
EFFECTIVE
DATES.
14
Be
It
Enacted
by
the
Legislature
of
the
State
of
Idaho:
15
SECTION
1.
That
Section
63
-
3024,
Idaho
Code,
be,
and
the
same
is
hereby
16
amended
to
read
as
follows:
17
63
-
3024.
INDIVIDUALS'
TAX
AND
TAX
ON
ESTATES
AND
TRUSTS.
(1)
For
each
18
taxable
year,
a
tax
measured
by
Idaho
taxable
income
as
defined
in
this
chap
-
19
ter
is
hereby
imposed
upon
every
individual,
trust,
or
estate
required
by
20
this
chapter
to
file
a
return.
21
(2)(a)
The
tax
imposed
upon
individuals,
trusts,
and
estates
shall
be
22
computed
at
the
rate
of
five
and
three
-
tenths
percent
(5.3%)
five
and
23
six
hundred
ninety
-
five
thousandths
percent
(5.695%)
of
taxable
income
24
over
two
thousand
five
hundred
dollars
($2,500).
25
(b)
For
taxpayers
filing
a
joint
return
pursuant
to
the
provisions
26
of
section
63
-
3031,
Idaho
Code,
the
tax
imposed
shall
be
computed
at
27
the
rate
of
five
and
three
-
tenths
percent
(5.3%)
five
and
six
hundred
28
ninety
-
five
thousandths
percent
(5.695%)
of
taxable
income
over
five
29
thousand
dollars
($5,000).
For
the
purposes
of
this
section,
a
return
30
of
a
surviving
spouse,
as
defined
in
section
2(a)
of
the
Internal
Rev
-
31
enue
Code,
and
a
head
of
household,
as
defined
in
section
2(b)
of
the
32
Internal
Revenue
Code,
shall
be
treated
as
a
joint
return.
33
(3)
For
taxable
year
2000
and
each
year
thereafter,
the
state
tax
com
-
34
mission
shall
prescribe
a
factor
that
shall
be
used
to
compute
the
Idaho
in
-
35
come
tax
thresholds
provided
in
subsection
(2)
of
this
section.
The
factor
36
shall
provide
an
adjustment
to
the
Idaho
tax
thresholds
so
that
inflation
37
will
not
result
in
a
tax
increase.
The
Idaho
tax
thresholds
shall
be
adjusted
38
as
follows:
multiply
the
last
threshold
amount
by
the
percentage
(the
con
-
39
sumer
price
index
for
the
calendar
year
immediately
preceding
the
calendar
40
year
to
which
the
adjusted
threshold
amount
will
apply
divided
by
the
con
-
41
sumer
price
index
for
calendar
year
1998).
For
the
purpose
of
this
computa
-
42
2
tion,
the
consumer
price
index
for
any
calendar
year
is
the
average
of
the
1
consumer
price
index
as
of
the
close
of
the
twelve
(12)
month
period
for
the
2
immediately
preceding
calendar
year,
without
regard
to
any
subsequent
ad
-
3
justments,
as
adopted
by
the
state
tax
commission.
This
adoption
shall
be
4
exempt
from
the
provisions
of
chapter
52,
title
67,
Idaho
Code.
The
consumer
5
price
index
shall
mean
the
consumer
price
index
for
all
U.S.
urban
consumers
6
published
by
the
United
States
department
of
labor.
The
state
tax
commission
7
shall
annually
include
the
factor
as
provided
in
this
subsection
to
multiply
8
against
Idaho
taxable
income
using
the
thresholds
in
this
section
to
arrive
9
at
that
year's
Idaho
taxable
income
for
tax
threshold
purposes.
10
(4)
In
the
case
of
a
trust
that
is
an
electing
small
business
trust
as
1
1
defined
in
section
1361
of
the
Internal
Revenue
Code,
the
special
rules
for
12
taxation
of
such
trusts
contained
in
section
641
of
the
Internal
Revenue
Code
13
shall
apply,
except
that
the
individual
rate
provided
in
subsection
(2)(a)
14
of
this
section
shall
apply
in
computing
tax
due
under
this
chapter.
15
(5)
The
state
tax
commission
may
promulgate
rules
defining
the
condi
-
16
tions
upon
which
such
returns
shall
be
filed.
17
SECTION
2.
That
Section
63
-
3024
,
Idaho
Code,
be,
and
the
same
is
hereby
18
repealed.
19
SECTION
3.
That
Chapter
30,
Title
63,
Idaho
Code,
be,
and
the
same
is
20
hereby
amended
by
the
addition
thereto
of
a
NEW
SECTION
,
to
be
known
and
des
-
21
ignated
as
Section
63
-
3024,
Idaho
Code,
and
to
read
as
follows:
22
63
-
3024.
INDIVIDUALS'
TAX
AND
TAX
ON
ESTATES
AND
TRUSTS.
(1)
For
each
23
taxable
year,
a
tax
measured
by
Idaho
taxable
income
as
defined
in
this
chap
-
24
ter
is
hereby
imposed
on
every
individual,
trust,
or
estate
required
by
this
25
chapter
to
file
a
return.
26
(2)(a)
The
tax
imposed
on
individuals,
trusts,
and
estates
shall
be
27
computed
at
the
rate
of
five
and
three
-
tenths
percent
(5.3%)
of
taxable
28
income
over
two
thousand
five
hundred
dollars
($2,500).
29
(b)
For
taxpayers
filing
a
joint
return
pursuant
to
the
provisions
of
30
section
63
-
3031,
Idaho
Code,
the
tax
imposed
shall
be
computed
at
the
31
rate
of
five
and
three
-
tenths
percent
(5.3%)
of
taxable
income
over
five
32
thousand
dollars
($5,000).
For
the
purposes
of
this
section,
a
return
33
of
a
surviving
spouse,
as
defined
in
section
2(a)
of
the
Internal
Rev
-
34
enue
Code,
and
a
head
of
household,
as
defined
in
section
2(b)
of
the
In
-
35
ternal
Revenue
Code,
shall
be
treated
as
a
joint
return.
36
(3)
For
taxable
year
2000
and
each
year
thereafter,
the
state
tax
com
-
37
mission
shall
prescribe
a
factor
that
shall
be
used
to
compute
the
Idaho
in
-
38
come
tax
thresholds
provided
in
subsection
(2)
of
this
section.
The
factor
39
shall
provide
an
adjustment
to
the
Idaho
tax
thresholds
so
that
inflation
40
will
not
result
in
a
tax
increase.
The
Idaho
tax
thresholds
shall
be
adjusted
41
as
follows:
multiply
the
last
threshold
amount
by
the
percentage
(the
con
-
42
sumer
price
index
for
the
calendar
year
immediately
preceding
the
calendar
43
year
to
which
the
adjusted
threshold
amount
will
apply
divided
by
the
con
-
44
sumer
price
index
for
calendar
year
1998).
For
the
purpose
of
this
computa
-
45
tion,
the
consumer
price
index
for
any
calendar
year
is
the
average
of
the
46
consumer
price
index
as
of
the
close
of
the
twelve
(12)
month
period
for
the
47
immediately
preceding
calendar
year,
without
regard
to
any
subsequent
ad
-
48
3
justments,
as
adopted
by
the
state
tax
commission.
This
adoption
shall
be
1
exempt
from
the
provisions
of
chapter
52,
title
67,
Idaho
Code.
The
consumer
2
price
index
shall
mean
the
consumer
price
index
for
all
U.S.
urban
consumers
3
published
by
the
United
States
department
of
labor.
The
state
tax
commission
4
shall
annually
include
the
factor
as
provided
in
this
subsection
to
multiply
5
against
Idaho
taxable
income
using
the
thresholds
in
this
section
to
arrive
6
at
that
year's
Idaho
taxable
income
for
tax
threshold
purposes.
7
(4)
In
the
case
of
a
trust
that
is
an
electing
small
business
trust
as
8
defined
in
section
1361
of
the
Internal
Revenue
Code,
the
special
rules
for
9
taxation
of
such
trusts
contained
in
section
641
of
the
Internal
Revenue
Code
10
shall
apply,
except
that
the
individual
rate
provided
in
subsection
(2)(a)
1
1
of
this
section
shall
apply
in
computing
tax
due
under
this
chapter.
12
(5)
The
state
tax
commission
may
promulgate
rules
defining
the
condi
-
13
tions
upon
which
such
returns
shall
be
filed.
14
SECTION
4.
That
Section
63
-
3025,
Idaho
Code,
be,
and
the
same
is
hereby
15
amended
to
read
as
follows:
16
63
-
3025.
TAX
ON
CORPORATE
INCOME.
(1)
For
each
taxable
year,
a
tax
is
17
hereby
imposed
on
the
Idaho
taxable
income
of
a
corporation,
other
than
an
18
S
corporation,
that
transacts
or
is
authorized
to
transact
business
in
this
19
state
or
has
income
attributable
to
this
state.
The
tax
rate
imposed
by
this
20
section
shall
be
as
follows:
21
(a)
For
each
taxable
year,
commencing
on
and
after
January
1,
2001,
the
22
tax
imposed
by
this
section
shall
be
equal
to
seven
and
six
-
tenths
per
-
23
cent
(7.6%)
of
Idaho
taxable
income.
24
(b)
For
each
taxable
year,
commencing
on
and
after
January
1,
2012,
the
25
tax
imposed
by
this
section
is
changed
and
shall
be
equal
to
seven
and
26
four
-
tenths
percent
(7.4%)
of
Idaho
taxable
income.
27
(c)
For
each
taxable
year,
commencing
on
and
after
January
1,
2018,
the
28
tax
imposed
by
this
section
is
changed
and
shall
be
equal
to
six
and
nine
29
hundred
twenty
-
five
thousandths
percent
(6.925%)
of
Idaho
taxable
in
-
30
come.
31
(d)
For
each
taxable
year,
commencing
on
and
after
January
1,
2021,
32
the
tax
imposed
by
this
section
is
changed
and
shall
be
equal
to
six
and
33
five
-
tenths
percent
(6.5%)
of
Idaho
taxable
income.
34
(e)
For
each
taxable
year,
commencing
on
and
after
January
1,
2022,
the
35
tax
imposed
by
this
section
is
changed
and
shall
be
equal
to
six
percent
36
(6%)
of
Idaho
taxable
income.
37
(f)
For
each
taxable
year,
commencing
on
and
after
January
1,
2023,
the
38
tax
imposed
by
this
section
is
changed
and
shall
be
equal
to
five
and
39
eight
-
tenths
percent
(5.8%)
of
Idaho
taxable
income.
40
(g)
For
each
taxable
year,
commencing
on
and
after
January
1,
2024,
the
41
tax
imposed
by
this
section
is
changed
and
shall
be
equal
to
five
and
six
42
hundred
ninety
-
five
thousandths
percent
(5.695%)
of
Idaho
taxable
in
-
43
come.
44
(h)
For
each
taxable
year,
commencing
on
and
after
January
1,
2025,
the
45
tax
imposed
by
this
section
is
changed
and
shall
be
equal
to
five
and
46
three
-
tenths
percent
(5.3%)
of
Idaho
taxable
income.
47
4
(2)
In
the
case
of
an
S
corporation
that
is
required
to
file
a
return
un
-
1
der
section
63
-
3030,
Idaho
Code,
a
tax
is
hereby
imposed
at
the
rate
provided
2
in
subsection
(1)
of
this
section
upon
both:
3
(a)
Net
recognized
built
-
in
gain
attributable
to
this
state.
The
4
amount
of
net
recognized
built
-
in
gain
attributable
to
this
state
shall
5
be
computed
in
accordance
with
section
1374
of
the
Internal
Revenue
6
Code
subject
to
the
apportionment
and
allocation
provisions
of
section
7
63
-
3027,
Idaho
Code;
and
8
(b)
Excess
net
passive
income
attributable
to
this
state.
The
amount
of
9
excess
net
passive
income
attributable
to
this
state
shall
be
computed
10
in
accordance
with
section
1375
of
the
Internal
Revenue
Code
subject
to
1
1
the
apportionment
and
allocation
provisions
of
section
63
-
3027,
Idaho
12
Code.
13
(3)
The
tax
imposed
by
subsection
(1)
or
(2)
of
this
section
shall
not
be
14
less
than
twenty
dollars
($20.00);
provided
that
the
twenty
-
dollar
($20.00)
15
minimum
payment
shall
not
be
collected
from
nonproductive
mining
corpora
-
16
tions.
17
(4)
The
tax
imposed
by
this
section
shall
not
apply
to
corporations
18
taxed
pursuant
to
the
provisions
of
section
63
-
3025A,
Idaho
Code.
19
SECTION
5.
That
Section
63
-
3025
,
Idaho
Code,
be,
and
the
same
is
hereby
20
repealed.
21
SECTION
6.
That
Chapter
30,
Title
63,
Idaho
Code,
be,
and
the
same
is
22
hereby
amended
by
the
addition
thereto
of
a
NEW
SECTION
,
to
be
known
and
des
-
23
ignated
as
Section
63
-
3025,
Idaho
Code,
and
to
read
as
follows:
24
63
-
3025.
TAX
ON
CORPORATE
INCOME.
(1)
For
each
taxable
year,
a
tax
is
25
hereby
imposed
on
the
Idaho
taxable
income
of
a
corporation,
other
than
an
26
S
corporation,
that
transacts
or
is
authorized
to
transact
business
in
this
27
state
or
has
income
attributable
to
this
state.
The
tax
rate
imposed
by
this
28
section
shall
be
as
follows:
29
(a)
For
each
taxable
year,
commencing
on
and
after
January
1,
2001,
the
30
tax
imposed
by
this
section
shall
be
equal
to
seven
and
six
-
tenths
per
-
31
cent
(7.6%)
of
Idaho
taxable
income.
32
(b)
For
each
taxable
year,
commencing
on
and
after
January
1,
2012,
the
33
tax
imposed
by
this
section
is
changed
and
shall
be
equal
to
seven
and
34
four
-
tenths
percent
(7.4%)
of
Idaho
taxable
income.
35
(c)
For
each
taxable
year,
commencing
on
and
after
January
1,
2018,
the
36
tax
imposed
by
this
section
is
changed
and
shall
be
equal
to
six
and
nine
37
hundred
twenty
-
five
thousandths
percent
(6.925%)
of
Idaho
taxable
in
-
38
come.
39
(d)
For
each
taxable
year,
commencing
on
and
after
January
1,
2021,
40
the
tax
imposed
by
this
section
is
changed
and
shall
be
equal
to
six
and
41
five
-
tenths
percent
(6.5%)
of
Idaho
taxable
income.
42
(e)
For
each
taxable
year,
commencing
on
and
after
January
1,
2022,
the
43
tax
imposed
by
this
section
is
changed
and
shall
be
equal
to
six
percent
44
(6%)
of
Idaho
taxable
income.
45
(f)
For
each
taxable
year,
commencing
on
and
after
January
1,
2023,
the
46
tax
imposed
by
this
section
is
changed
and
shall
be
equal
to
five
and
47
eight
-
tenths
percent
(5.8%)
of
Idaho
taxable
income.
48
5
(g)
For
each
taxable
year,
commencing
on
and
after
January
1,
2024,
the
1
tax
imposed
by
this
section
is
changed
and
shall
be
equal
to
five
and
six
2
hundred
ninety
-
five
thousandths
percent
(5.695%)
of
Idaho
taxable
in
-
3
come.
4
(h)
For
each
taxable
year,
commencing
on
and
after
January
1,
2025,
the
5
tax
imposed
by
this
section
is
changed
and
shall
be
equal
to
five
and
6
three
-
tenths
percent
(5.3%)
of
Idaho
taxable
income.
7
(i)
For
each
taxable
year,
commencing
on
and
after
January
1,
2027,
the
8
tax
imposed
by
this
section
is
changed
and
shall
be
equal
to
five
and
six
9
hundred
ninety
-
five
thousandths
percent
(5.695%)
of
Idaho
taxable
in
-
10
come.
1
1
(j)
For
each
taxable
year,
commencing
on
and
after
January
1,
2028,
the
12
tax
imposed
by
this
section
is
changed
and
shall
be
equal
to
five
and
13
three
-
tenths
percent
(5.3%)
of
Idaho
taxable
income.
14
(2)
In
the
case
of
an
S
corporation
that
is
required
to
file
a
return
un
-
15
der
section
63
-
3030,
Idaho
Code,
a
tax
is
hereby
imposed
at
the
rate
provided
16
in
subsection
(1)
of
this
section
on
both:
17
(a)
Net
recognized
built
-
in
gain
attributable
to
this
state.
The
18
amount
of
net
recognized
built
-
in
gain
attributable
to
this
state
shall
19
be
computed
in
accordance
with
section
1374
of
the
Internal
Revenue
20
Code
subject
to
the
apportionment
and
allocation
provisions
of
section
21
63
-
3027,
Idaho
Code;
and
22
(b)
Excess
net
passive
income
attributable
to
this
state.
The
amount
of
23
excess
net
passive
income
attributable
to
this
state
shall
be
computed
24
in
accordance
with
section
1375
of
the
Internal
Revenue
Code
subject
to
25
the
apportionment
and
allocation
provisions
of
section
63
-
3027,
Idaho
26
Code.
27
(3)
The
tax
imposed
by
subsection
(1)
or
(2)
of
this
section
shall
not
be
28
less
than
twenty
dollars
($20.00);
provided
that
the
twenty
-
dollar
($20.00)
29
minimum
payment
shall
not
be
collected
from
nonproductive
mining
corpora
-
30
tions.
31
(4)
The
tax
imposed
by
this
section
shall
not
apply
to
corporations
32
taxed
pursuant
to
the
provisions
of
section
63
-
3025A,
Idaho
Code.
33
SECTION
7.
Sections
1
and
4
of
this
act
shall
be
in
full
force
on
and
af
-
34
ter
January
1,
2027,
and
Sections
2,
3,
5,
and
6
of
this
act
shall
be
in
full
35
force
and
effect
on
and
after
January
1,
2028.
36