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 the 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, as well as the binding nature of these restrictions for at least 60 years.

The Middle Income Land Trust Tax Credit incentivizes donations of land to land trusts that serve low- to moderate-income households. Taxpayers can receive a credit based on a percentage of the difference between the property's purchase price or tax basis and its appraised value at the time of donation. The bill specifies that the land trust must lease the land to households earning at or below 100% of the area median income, with additional stipulations regarding the sale price of housing units built on the land. Both tax credits require taxpayers to retain documentation for ten years and provide for the recapture of credits if claimed amounts exceed authorized limits. The bill also declares an emergency, making it effective immediately upon passage and retroactively applicable to January 1, 2025.