This bill introduces two new tax credits aimed at supporting middle-income households in Idaho: the Middle Income Property Development Tax Credit and the Middle Income Land Trust Tax Credit, both effective from tax year 2025. The Middle Income Property Development Tax Credit allows taxpayers to receive a credit based on the difference between the sale price and the appraised value of deed-restricted properties, which must be sold to households earning at or below 120% of the area median income. The bill outlines specific requirements for deed-restricted properties, including the necessity for a deed restriction program manager to verify compliance with income and usage restrictions.

The Middle Income Land Trust Tax Credit incentivizes donations of land to qualified land trusts, providing tax credits based on the difference between the property's purchase price or tax basis and its appraised value at the time of donation. The bill specifies different credit percentages depending on the income level of the households served by the land trust, with a maximum of 50% for households earning up to 80% of the area median income. Both tax credits require taxpayers to retain documentation for ten years and allow for the carryforward of excess credits for up to ten taxable years. The bill also declares an emergency, making it effective immediately upon passage and retroactively applicable to January 1, 2025.