The bill amends Section 63-3029L of the Idaho Code to revise the provisions regarding the Child Tax Credit. It establishes a nonrefundable credit of $205 for each qualifying child for taxable years beginning on or after January 1, 2018, and before January 1, 2026. Notably, the definition of "qualifying child" is expanded to include preborn children diagnosed during the tax year, provided they were not delivered to term within the same year. Taxpayers claiming this credit for a preborn child must include a certification letter from a licensed physician or midwife confirming the pregnancy diagnosis. The bill also clarifies that in cases of divorced parents, the mother of a preborn child must claim the credit, while the custodial parent claims the credit for other qualifying children.

Additionally, the bill specifies that only one taxpayer can claim the credit for the same qualifying child, and it is available exclusively to Idaho residents. Part-year residents are entitled to a proportional credit based on the duration of their residency in Idaho. The bill includes provisions for noncustodial parents to claim the credit under certain conditions, such as having a court order or a written declaration from the custodial parent. An emergency clause is included, making the act effective immediately upon passage and retroactively applicable to January 1, 2025.

Statutes affected:
Bill Text: 63-3029L