The bill amends the Idaho Code to address various aspects of taxation, particularly focusing on capital gains and losses from precious metal bullion sales, military retirement pay deductions, and income tax rates for individuals and corporations. It introduces a provision that allows taxpayers to adjust their Idaho taxable income by adding or subtracting net capital gains or losses from precious metal bullion, contingent on specific definitions. Additionally, the bill expands eligibility for military retirement pay deductions and makes technical corrections to existing provisions.

Moreover, the bill reduces the income tax rate for individuals, trusts, and estates from 5.695% to 5.3% for taxable income over $2,500, with adjustments made for joint returns. It clarifies the conditions under which retirement benefits can be deducted, ensuring that only certain taxpayers qualify. The bill also establishes that the total deduction for retirement benefits cannot exceed the amounts included in the taxpayer's gross income and emphasizes the need for inflation adjustments to tax thresholds. With a retroactive provision effective from January 1, 2025, the bill aims to refine Idaho's tax framework to better accommodate specific financial scenarios while ensuring compliance with federal standards.

Statutes affected:
Bill Text: 63-3022, 63-3022A, 63-3024, 63-3025