This bill amends several sections of the Idaho Code related to taxation, specifically focusing on the application of the Internal Revenue Code, income tax credits for capital investments, and credits for research activities conducted in the state. Notably, it updates Section 63-3004 to change the reference date for the Internal Revenue Code from January 1, 2025, to January 1, 2026, while maintaining the application of Section 85 as it was on January 1, 2020. Additionally, Section 63-3029B is revised to clarify the income tax credit for capital investments, including the definition of "qualified investment" and the conditions under which taxpayers can elect for a two-year exemption from personal property taxes on qualified investments.

Furthermore, the bill introduces new provisions in Section 63-3029G regarding credits for research activities, specifying that any amounts claimed as deductions under Section 174 of the Internal Revenue Code that qualify as research expenses will not be eligible for the credit provided in this section. The bill also establishes that the credits allowed cannot exceed the taxpayer's tax liability and includes provisions for carryforward of unused credits. An emergency clause is included, making the act effective immediately upon passage and retroactively applicable to January 1, 2025.

Statutes affected:
Bill Text: 63-3004, 63-3029B, 63-3029G