This bill amends various sections of the Idaho Code to revise tax provisions, focusing on military retirement pay deductions, corporate income tax rates, and tax assessment limitations. It allows individuals receiving military retirement benefits to deduct these from their taxable income under specific conditions, such as disability or age, and clarifies the maximum deductible amount based on social security benefits. The corporate income tax rate is set to decrease from 7.6% to 5.3% over several years starting in 2025, while the period for tax assessments is adjusted to three years, with exceptions for fraudulent returns. The bill also includes provisions for retroactive application and declares an emergency to expedite these tax revisions.

Additionally, the bill establishes a Tax Relief Fund to support future tax relief initiatives, requiring annual transfers of $50 million to the school district facilities fund and $39 million to the state public defense fund. It modifies the distribution of funds for public education, creating a new general fund for educational support programs with an annual allocation of $330 million. The bill emphasizes structured financial support for local governments and educational institutions, ensuring effective utilization of funds. Certain provisions will take effect immediately upon passage, while others will begin on July 1, 2025, reflecting the updated timing of the act's effectiveness.

Statutes affected:
Bill Text: 63-3633, 63-3045, 63-3068, 63-3638