Budget & Taxes (Business Taxes)

in committee · Idaho · House Feb 27, 2026

H 782: TAXATION – 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.

Idaho's H 782 bill revises income tax rates for individuals and corporations, lowering the top individual rate to 5.325% by 2026 and gradually reducing corporate tax rates from 7.6% to 5.325% over time. It extends the child tax credit indefinitely - allowing $205 per qualifying child annually for families filing Idaho taxes - and permanently repeals the Parental Choice Tax Credit (which provided education-related tax breaks) and its advance payment fund. The bill directly affects Idaho residents (through individual tax changes), businesses (via corporate tax adjustments), and families with qualifying children (through the extended credit). Key mechanisms include automatic inflation adjustments for tax thresholds and the elimination of the Parental Choice program, effective immediately upon enactment.

Topics ✓ Budget & TaxesSupports Budget & TaxesLowers top individual/corporate tax rates, extends child tax credit, and repeals education tax credit. Reduces overall tax burden for residents, aligning with tax relief indicators.95% confidence

Sub-Topics Business Taxes Income Tax Tax Credits

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signed · Idaho · House Mar 23, 2026

H 733: TAXATION – Amends and adds to existing law to revise provisions regarding the taxation of partnership income.

H 733 revises Idaho's tax code for partnerships and S corporations (now called "affected business entities") by requiring these entities to pay tax on behalf of non-resident members instead of individual members filing returns. The bill adds new rules for calculating tax based on Idaho-sourced income, sets deadlines for annual elections to qualify as an affected business entity, and creates a new section (63-3070) to handle partnership income and federal adjustments. Non-resident members of such entities will not need to file individual tax returns if the entity pays the tax and reports it. The bill also updates technical provisions for tax notices, deadlines, and credit adjustments. These changes streamline tax collection for businesses with non-resident owners while maintaining Idaho's corporate tax rate for entity-level payments.

Topics ✓ Budget & TaxesSupports Budget & TaxesRequiring entities to pay tax on non-resident members instead of individuals closes potential tax avoidance loopholes, strengthening fiscal collection under Idaho's tax code.85% confidence

Sub-Topics Business Taxes

in committee · Idaho · House Feb 25, 2026

H 755: TAXATION – Adds to existing law to provide for the review and expiration of sales tax exemptions.

Idaho's H 755 requires the annual review of all state sales tax exemptions by the Legislative Services Office. The review analyzes factors like annual revenue impact, public purpose, affected taxpayers, and benefits/detriment of repeal, with a report due to tax committees by February 1 each year. All sales tax exemptions enacted on or after January 1, 2026, will automatically expire 10 years after their effective date (or July 1, 2027, whichever is later), unless renewed by the legislature. Existing exemptions expire 10 years after enactment or July 1, 2031, unless extended. This bill directly affects businesses and individuals benefiting from current exemptions by subjecting them to mandatory review and automatic expiration.

Topics ✓ Budget & TaxesSupports Budget & TaxesRequires annual review and automatic expiration of sales tax exemptions, promoting fiscal responsibility by closing loopholes and ensuring exemptions are justified.90% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

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signed · Idaho · House Mar 24, 2026

H 751: SALES AND USE TAX – Amends existing law to revise provisions regarding a sales and use tax rebate for certain developers of certain retail complexes.

This bill revises Idaho's sales tax rebate program for developers of retail complexes. It allows developers to receive a 60% rebate on sales taxes collected by qualified retailers within their complex, provided the developer spent at least $4 million on approved transportation improvements (like highway projects costing over $5 million). The rebate is paid from a new "demonstration pilot project fund" and capped at $35 million per transportation project. This directly affects developers building retail complexes who make qualifying transportation investments, not the retailers or general consumers.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides 60% sales tax rebate to developers meeting transportation spending requirements, creating targeted tax relief through a dedicated fund.95% confidence ✓ TransportationSupports TransportationBill requires $4M+ transportation spending for tax rebates, directing funds toward infrastructure via new pilot fund95% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives Roads & Highways

in committee · Idaho · House Feb 5, 2026

H 589: TAXATION – Amends, repeals, and adds to existing law to revise provisions regarding the rate of income taxes.

This bill revises Idaho's individual and corporate income tax rates. It lowers the individual income tax rate from 5.695% to 5.3% for taxable income over $2,500 (or $5,000 for joint returns), and reduces the corporate tax rate from 7.6% to 7.4% for taxable years starting in 2012. The bill also adds an automatic inflation adjustment mechanism: the state tax commission will annually update tax thresholds using the Consumer Price Index to prevent inflation from increasing tax burdens. These changes directly affect all Idaho residents and businesses filing income tax returns under state law.

Topics ✓ Budget & TaxesSupports Budget & TaxesLowers individual and corporate tax rates, adds inflation adjustment to prevent tax hikes, providing relief for middle-income earners.95% confidence

Sub-Topics Business Taxes Income Tax

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in committee · Idaho · House Jan 26, 2026

H 519: TAXATION – 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.

H 519 updates Idaho's tax code to align with the current federal Internal Revenue Code (as of 2026) and revises tax credits for business capital investments and research activities. It sets a 3% annual cap on the capital investment tax credit based on qualifying property, including equipment eligible for federal tax credits and qualified broadband infrastructure. The bill also allows eligible businesses to opt for a two-year exemption from personal property taxes on qualifying investments instead of claiming the capital investment credit, subject to specific income and investment criteria. These changes primarily affect Idaho-based businesses making qualifying capital investments or conducting research within the state.

Topics ✓ Budget & TaxesSupports Budget & TaxesRevises tax credits for business capital investments and research, providing tax relief to encourage economic activity and align with federal tax code.85% confidence ✓ TechnologySupports TechnologyBill provides tax credits for qualified broadband infrastructure investments, directly advancing internet access expansion as a technology policy.90% confidence

Sub-Topics Business Taxes Tax Credits Broadband Access

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signed · Idaho · House Feb 11, 2026

H 559: TAXATION – Amends existing law to update references to the current Internal Revenue Code and to revise certain tax credits and adjustments.

This Idaho bill updates the state's tax code to align with the current Internal Revenue Code (IRC), specifically revising how businesses calculate taxable income related to depreciation and research credits. It directly affects Idaho businesses and taxpayers claiming bonus depreciation or research activity credits, ensuring adjustments prevent double tax benefits when federal loss limitations apply. Key provisions include modifying how bonus depreciation deductions are handled for Idaho tax purposes (e.g., adding back unused federal depreciation when losses are later deducted) and updating research credit rules for activities conducted in Idaho. The changes apply retroactively to certain tax years and require businesses to track Idaho-specific tax basis and loss carryforwards.

Topics ✓ Budget & TaxesSupports Budget & TaxesPrevents double tax benefits by aligning Idaho tax code with federal law, closing a loophole that could lead to unintended fiscal overpayment.90% confidence

Sub-Topics Business Taxes