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LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
HOUSE
OF
REPRESENTATIVES
HOUSE
BILL
NO.
782
BY
RUBEL
AN
ACT
1
RELATING
TO
TAXATION;
AMENDING
SECTION
63
-
3024,
IDAHO
CODE,
TO
REVISE
2
PROVISIONS
REGARDING
INDIVIDUALS'
TAX
AND
TAX
ON
ESTATES
AND
TRUSTS;
3
AMENDING
SECTION
63
-
3025,
IDAHO
CODE,
TO
REVISE
PROVISIONS
REGARDING
4
THE
TAX
ON
CORPORATE
INCOME;
AMENDING
SECTION
63
-
3029L,
IDAHO
CODE,
TO
5
REVISE
A
PROVISION
REGARDING
THE
CHILD
TAX
CREDIT;
REPEALING
SECTION
6
63
-
3029N,
IDAHO
CODE,
RELATING
TO
THE
IDAHO
PARENTAL
CHOICE
TAX
CREDIT;
7
AMENDING
SECTION
67
-
1230,
IDAHO
CODE,
TO
REVISE
PROVISIONS
REGARDING
8
THE
IDAHO
PARENTAL
CHOICE
TAX
CREDIT
ADVANCE
PAYMENT
FUND;
REPEALING
9
SECTION
67
-
1230,
IDAHO
CODE,
RELATING
TO
THE
IDAHO
PARENTAL
CHOICE
TAX
10
CREDIT
ADVANCE
PAYMENT
FUND;
AND
DECLARING
AN
EMERGENCY,
PROVIDING
1
1
RETROACTIVE
APPLICATION,
AND
PROVIDING
AN
EFFECTIVE
DATE.
12
Be
It
Enacted
by
the
Legislature
of
the
State
of
Idaho:
13
SECTION
1.
That
Section
63
-
3024,
Idaho
Code,
be,
and
the
same
is
hereby
14
amended
to
read
as
follows:
15
63
-
3024.
INDIVIDUALS'
TAX
AND
TAX
ON
ESTATES
AND
TRUSTS.
(1)
For
each
16
taxable
year,
a
tax
measured
by
Idaho
taxable
income
as
defined
in
this
chap
-
17
ter
is
hereby
imposed
upon
every
individual,
trust,
or
estate
required
by
18
this
chapter
to
file
a
return.
19
(2)(a)
The
tax
imposed
upon
individuals,
trusts,
and
estates
shall
be
20
computed
at
the
rate
of
five
and
three
-
tenths
percent
(5.3%)
five
and
21
three
hundred
twenty
-
five
thousandths
percent
(5.325%)
of
taxable
in
-
22
come
over
two
thousand
five
hundred
dollars
($2,500).
23
(b)
For
taxpayers
filing
a
joint
return
pursuant
to
the
provisions
of
24
section
63
-
3031,
Idaho
Code,
the
tax
imposed
shall
be
computed
at
the
25
rate
of
five
and
three
-
tenths
percent
(5.3%)
five
and
three
hundred
26
twenty
-
five
thousandths
percent
(5.325%)
of
taxable
income
over
five
27
thousand
dollars
($5,000).
For
the
purposes
of
this
section,
a
return
28
of
a
surviving
spouse,
as
defined
in
section
2(a)
of
the
Internal
Rev
-
29
enue
Code,
and
a
head
of
household,
as
defined
in
section
2(b)
of
the
30
Internal
Revenue
Code,
shall
be
treated
as
a
joint
return.
31
(3)
For
taxable
year
2000
and
each
year
thereafter,
the
state
tax
com
-
32
mission
shall
prescribe
a
factor
that
shall
be
used
to
compute
the
Idaho
in
-
33
come
tax
thresholds
provided
in
subsection
(2)
of
this
section.
The
factor
34
shall
provide
an
adjustment
to
the
Idaho
tax
thresholds
so
that
inflation
35
will
not
result
in
a
tax
increase.
The
Idaho
tax
thresholds
shall
be
adjusted
36
as
follows:
multiply
the
last
threshold
amount
by
the
percentage
(the
con
-
37
sumer
price
index
for
the
calendar
year
immediately
preceding
the
calendar
38
year
to
which
the
adjusted
threshold
amount
will
apply
divided
by
the
con
-
39
sumer
price
index
for
calendar
year
1998).
For
the
purpose
of
this
computa
-
40
tion,
the
consumer
price
index
for
any
calendar
year
is
the
average
of
the
41
consumer
price
index
as
of
the
close
of
the
twelve
(12)
month
period
for
the
42
2
immediately
preceding
calendar
year,
without
regard
to
any
subsequent
ad
-
1
justments,
as
adopted
by
the
state
tax
commission.
This
adoption
shall
be
2
exempt
from
the
provisions
of
chapter
52,
title
67,
Idaho
Code.
The
consumer
3
price
index
shall
mean
the
consumer
price
index
for
all
U.S.
urban
consumers
4
published
by
the
United
States
department
of
labor.
The
state
tax
commission
5
shall
annually
include
the
factor
as
provided
in
this
subsection
to
multiply
6
against
Idaho
taxable
income
using
the
thresholds
in
this
section
to
arrive
7
at
that
year's
Idaho
taxable
income
for
tax
threshold
purposes.
8
(4)
In
the
case
of
a
trust
that
is
an
electing
small
business
trust
as
9
defined
in
section
1361
of
the
Internal
Revenue
Code,
the
special
rules
for
10
taxation
of
such
trusts
contained
in
section
641
of
the
Internal
Revenue
Code
1
1
shall
apply,
except
that
the
individual
rate
provided
in
subsection
(2)(a)
12
of
this
section
shall
apply
in
computing
tax
due
under
this
chapter.
13
(5)
The
state
tax
commission
may
promulgate
rules
defining
the
condi
-
14
tions
upon
which
such
returns
shall
be
filed.
15
SECTION
2.
That
Section
63
-
3025,
Idaho
Code,
be,
and
the
same
is
hereby
16
amended
to
read
as
follows:
17
63
-
3025.
TAX
ON
CORPORATE
INCOME.
(1)
For
each
taxable
year,
a
tax
is
18
hereby
imposed
on
the
Idaho
taxable
income
of
a
corporation,
other
than
an
19
S
corporation,
that
transacts
or
is
authorized
to
transact
business
in
this
20
state
or
has
income
attributable
to
this
state.
The
tax
rate
imposed
by
this
21
section
shall
be
as
follows:
22
(a)
For
each
taxable
year,
commencing
on
and
after
January
1,
2001,
the
23
tax
imposed
by
this
section
shall
be
equal
to
seven
and
six
-
tenths
per
-
24
cent
(7.6%)
of
Idaho
taxable
income.
25
(b)
For
each
taxable
year,
commencing
on
and
after
January
1,
2012,
the
26
tax
imposed
by
this
section
is
changed
and
shall
be
equal
to
seven
and
27
four
-
tenths
percent
(7.4%)
of
Idaho
taxable
income.
28
(c)
For
each
taxable
year,
commencing
on
and
after
January
1,
2018,
the
29
tax
imposed
by
this
section
is
changed
and
shall
be
equal
to
six
and
nine
30
hundred
twenty
-
five
thousandths
percent
(6.925%)
of
Idaho
taxable
in
-
31
come.
32
(d)
For
each
taxable
year,
commencing
on
and
after
January
1,
2021,
33
the
tax
imposed
by
this
section
is
changed
and
shall
be
equal
to
six
and
34
five
-
tenths
percent
(6.5%)
of
Idaho
taxable
income.
35
(e)
For
each
taxable
year,
commencing
on
and
after
January
1,
2022,
the
36
tax
imposed
by
this
section
is
changed
and
shall
be
equal
to
six
percent
37
(6%)
of
Idaho
taxable
income.
38
(f)
For
each
taxable
year,
commencing
on
and
after
January
1,
2023,
the
39
tax
imposed
by
this
section
is
changed
and
shall
be
equal
to
five
and
40
eight
-
tenths
percent
(5.8%)
of
Idaho
taxable
income.
41
(g)
For
each
taxable
year,
commencing
on
and
after
January
1,
2024,
the
42
tax
imposed
by
this
section
is
changed
and
shall
be
equal
to
five
and
six
43
hundred
ninety
-
five
thousandths
percent
(5.695%)
of
Idaho
taxable
in
-
44
come.
45
(h)
For
each
taxable
year,
commencing
on
and
after
January
1,
2025,
the
46
tax
imposed
by
this
section
is
changed
and
shall
be
equal
to
five
and
47
three
-
tenths
percent
(5.3%)
of
Idaho
taxable
income.
48
3
(i)
For
each
taxable
year,
commencing
on
and
after
January
1,
2026,
the
1
tax
imposed
by
this
section
is
changed
and
shall
be
equal
to
five
and
2
three
hundred
twenty
-
five
thousandths
percent
(5.325%)
of
Idaho
tax
-
3
able
income.
4
(2)
In
the
case
of
an
S
corporation
that
is
required
to
file
a
return
un
-
5
der
section
63
-
3030,
Idaho
Code,
a
tax
is
hereby
imposed
at
the
rate
provided
6
in
subsection
(1)
of
this
section
upon
both:
7
(a)
Net
recognized
built
-
in
gain
attributable
to
this
state.
The
8
amount
of
net
recognized
built
-
in
gain
attributable
to
this
state
shall
9
be
computed
in
accordance
with
section
1374
of
the
Internal
Revenue
10
Code
subject
to
the
apportionment
and
allocation
provisions
of
section
1
1
63
-
3027,
Idaho
Code;
and
12
(b)
Excess
net
passive
income
attributable
to
this
state.
The
amount
of
13
excess
net
passive
income
attributable
to
this
state
shall
be
computed
14
in
accordance
with
section
1375
of
the
Internal
Revenue
Code
subject
to
15
the
apportionment
and
allocation
provisions
of
section
63
-
3027,
Idaho
16
Code.
17
(3)
The
tax
imposed
by
subsection
(1)
or
(2)
of
this
section
shall
not
be
18
less
than
twenty
dollars
($20.00);
provided
that
the
twenty
-
dollar
($20.00)
19
minimum
payment
shall
not
be
collected
from
nonproductive
mining
corpora
-
20
tions.
21
(4)
The
tax
imposed
by
this
section
shall
not
apply
to
corporations
22
taxed
pursuant
to
the
provisions
of
section
63
-
3025A,
Idaho
Code.
23
SECTION
3.
That
Section
63
-
3029L,
Idaho
Code,
be,
and
the
same
is
hereby
24
amended
to
read
as
follows:
25
63
-
3029L.
CHILD
TAX
CREDIT.
(1)
For
taxable
years
beginning
on
or
af
-
26
ter
January
1,
2018,
and
before
January
1,
2026,
there
shall
be
allowed
to
a
27
taxpayer
a
nonrefundable
credit
against
the
tax
imposed
by
this
chapter
in
28
the
amount
of
two
hundred
five
dollars
($205)
with
respect
to
each
qualifying
29
child
of
the
taxpayer.
For
purposes
of
this
section,
the
term
"qualifying
30
child"
has
the
meaning
as
defined
in
section
24(c)
of
the
Internal
Revenue
31
Code.
In
no
event
shall
more
than
one
(1)
taxpayer
be
allowed
this
credit
for
32
the
same
qualifying
child.
This
credit
is
available
only
to
Idaho
residents.
33
Any
part
-
year
resident
entitled
to
a
credit
under
this
section
shall
receive
34
a
proportional
credit
reflecting
the
part
of
the
year
in
which
the
part
-
year
35
resident
was
domiciled
in
Idaho.
36
(2)
In
the
case
of
divorced
parents
or
parents
who
do
not
live
together,
37
if
the
qualifying
child
is
in
the
custody
of
one
or
both
of
the
child's
par
-
38
ents
for
more
than
one
-
half
of
a
calendar
year,
such
child
is
the
qualifying
39
child
of
the
custodial
parent
for
the
taxable
year
beginning
during
such
cal
-
40
endar
year.
However,
the
child
may
be
the
qualifying
child
of
the
noncusto
-
41
dial
parent
if
either
of
the
following
requirements
are
met:
42
(a)
A
court
of
competent
jurisdiction
has
unconditionally
awarded,
in
43
writing,
to
the
noncustodial
parent
the
tax
benefits
associated
with
44
the
child
pursuant
to
section
32
-
706,
Idaho
Code,
and
the
noncustodial
45
parent
attaches
a
copy
of
the
court
order
to
the
noncustodial
parent's
46
income
tax
return
for
the
taxable
year;
or
47
(b)
The
custodial
parent
signs
a
written
declaration
that
such
custo
-
48
dial
parent
will
not
claim
the
credit
of
this
section
with
respect
to
49
4
such
child
for
any
taxable
year
beginning
in
such
calendar
year
and
the
1
noncustodial
parent
attaches
such
written
declaration
to
the
noncusto
-
2
dial
parent's
income
tax
return
for
the
taxable
year
beginning
during
3
such
calendar
year.
4
SECTION
4.
That
Section
63
-
3029N
,
Idaho
Code,
be,
and
the
same
is
hereby
5
repealed.
6
SECTION
5.
That
Section
67
-
1230,
Idaho
Code,
be,
and
the
same
is
hereby
7
amended
to
read
as
follows:
8
67
-
1230.
IDAHO
PARENTAL
CHOICE
TAX
CREDIT
ADVANCE
PAYMENT
FUND.
(1)
9
There
is
hereby
established
in
the
state
treasury
the
Idaho
parental
choice
10
tax
credit
advance
payment
fund,
to
be
administered
by
the
state
tax
commis
-
1
1
sion.
12
(2)
Moneys
in
the
fund
shall:
13
(a)
Consist
of
the
following:
14
(i)
Legislative
appropriations
and
transfers;
15
(ii)
Donations
and
contributions
made
to
the
fund;
16
(iii)
Reversions
of
unused,
paid
back,
or
recovered
advance
pay
-
17
ment
funds;
and
18
(iv)
Interest
earned
on
idle
moneys
in
the
fund;
and
19
(b)
Be
continuously
appropriated
to
pay
advance
payments
awarded
un
-
20
der
the
Idaho
parental
choice
tax
credit
program
established
in
section
21
63
-
3029N,
Idaho
Code
.
22
(3)
Notwithstanding
any
provision
of
law
to
the
contrary,
the
state
23
controller
shall
transfer
the
unobligated
cash
balance
remaining
in
the
24
Idaho
parental
choice
tax
credit
advance
payment
fund
to
the
general
fund
on
25
July
1,
2026,
or
as
soon
thereafter
as
practicable
but
no
later
than
December
26
1,
2026.
27
SECTION
6.
That
Section
67
-
1230
,
Idaho
Code,
be,
and
the
same
is
hereby
28
repealed.
29
SECTION
7.
An
emergency
existing
therefor,
which
emergency
is
hereby
30
declared
to
exist,
Sections
1,
2,
3,
and
4
of
this
act
shall
be
in
full
force
31
and
effect
on
and
after
passage
and
approval,
and
retroactively
to
January
32
1,
2026;
Section
5
of
this
act
shall
be
in
full
force
and
effect
on
and
after
33
passage
and
approval;
and
Section
6
of
this
act
shall
be
in
full
force
and
34
effect
on
January
1,
2027.
35