This bill amends various sections of the Idaho Code to revise tax provisions, particularly focusing on military retirement pay deductions, corporate income tax rates, and tax assessment limitations. It introduces new criteria for the deduction of military retirement benefits, allowing individuals who are disabled, over sixty-two, or have sufficient income to file a federal return to deduct these benefits from their taxable income, with the maximum deductible amount aligning with the Social Security Act's retirement benefits. Additionally, the corporate income tax rate will gradually decrease from 7.6% to 5.3% over several years, and the bill clarifies the three-year limitation period for tax assessments, with exceptions for fraudulent returns.

Furthermore, the bill establishes a tax relief fund within the state treasury, which will receive funds from various sources, including federal grants. It mandates annual transfers of $50 million to the school district facilities fund and $39 million to the state public defense fund, with the remaining balance allocated to the general fund. Significant changes include the deletion of the public school income fund and the insertion of a general fund for public schools' educational support programs, which will receive $330 million annually starting in fiscal year 2024. The bill also sets a retroactive effective date for certain provisions from January 1, 2025, while other sections will take effect on July 1, 2025.

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