This bill amends several sections of the Idaho Code related to taxation, specifically focusing on the application of the Internal Revenue Code and adjustments for research activities. Notably, it revises Section 63-3004 to change the reference date for the Internal Revenue Code from January 1, 2025, to January 1, 2026, while also specifying that certain provisions regarding research expenditures incurred between January 1, 2022, and January 1, 2025, will continue to be expensed under prior law. Additionally, Section 63-3022O is amended to clarify how depreciation and gains from the sale of depreciable property are calculated, particularly concerning bonus depreciation and loss limitations.

Furthermore, Section 63-3029G is updated to establish a nonrefundable credit for increasing research activities conducted in Idaho, detailing how the credit is calculated and the limitations on its use. The bill specifies that any amounts deducted or amortized under certain sections of the Internal Revenue Code that qualify as research expenses will not be eligible for this credit. The act declares an emergency, making it effective immediately upon passage and retroactively applicable to January 1, 2025.

Statutes affected:
Bill Text: 63-3004, 63-3022O, 63-3029G