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 and donations, to support future tax relief statutes. It mandates annual transfers from the tax relief fund to the school district facilities fund and outlines additional allocations to the homeowner property tax relief account and the state public defense fund. The effective date of the act is set for July 1, 2025, with certain sections taking effect retroactively to January 1, 2025. The bill includes several insertions and deletions to clarify the timing and amounts of these transfers.

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