This bill introduces two new tax credits aimed at supporting middle-income housing initiatives in Idaho, effective from the tax year 2025. The first credit, known as the Middle Income Property Development Tax Credit, allows taxpayers who develop and sell deed-restricted properties to receive a tax credit equal to the difference between the sale price and the appraised value of the property at the time of sale. The properties must meet specific criteria, including being sold to households with incomes at or below 120% of the area median income and being used as the purchaser's homestead. The bill outlines the responsibilities of deed restriction program managers, who must verify compliance with these requirements.

The second credit, the Middle Income Land Trust Tax Credit, incentivizes donations of land to land trusts that serve low- to moderate-income households. Taxpayers donating property to a land trust can receive a credit 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 income thresholds for households served by the land trust and establishes documentation requirements for taxpayers claiming the credits. Additionally, the bill declares an emergency, making it effective immediately and retroactively to January 1, 2025.