The bill amends various sections of the Idaho Code concerning taxation, particularly focusing on the treatment of capital gains and losses from precious metal bullion and monetized bullion sales, military retirement pay deductions, and income tax rates for individuals and corporations. A significant insertion allows taxpayers to add or subtract net capital gains or losses from these specific types of bullion to their Idaho taxable income, as defined in section 63-3622V. Additionally, the bill revises military retirement pay deductions, making technical corrections and expanding eligibility criteria, while also updating income tax rates for individuals, estates, trusts, and corporations.

Moreover, the bill reduces the tax rate for individuals, trusts, and estates from 5.695% to 5.3% for taxable income over $2,500, with a similar adjustment for joint returns. It clarifies the conditions under which retirement benefits can be deducted, specifying that certain taxpayers may not deduct benefits from federal retirement systems. The bill also introduces adjustments to ensure maximum retirement benefits align with social security adjustments and establishes a mechanism for annual adjustments to Idaho tax thresholds based on the consumer price index. The changes are declared to take effect immediately upon passage, with retroactive application to January 1, 2025.

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