This bill amends Idaho's taxation laws by introducing a new section, 63-3022W, which allows for subtractions from Idaho taxable income for qualified tips and overtime compensation received by taxpayers during taxable years from January 1, 2026, to January 1, 2029. The bill specifies that these subtractions will be based on definitions and limitations set forth in the Internal Revenue Code. Additionally, it revises existing provisions regarding food tax credits and refunds in Section 63-3024A, increasing the credit amounts for residents filing Idaho income tax returns and introducing a new credit for individuals aged 65 and older.

Furthermore, the bill makes several amendments to correct code references in Sections 63-3077G and 63-3077H, which pertain to the exchange of information between the state tax commission and the Idaho Department of Correction and the Idaho Department of Health and Welfare, respectively. These amendments ensure that the information exchanged is used solely for verifying claims related to the food tax credit. The bill declares an emergency, making it effective immediately upon passage and retroactively applicable to January 1, 2026.

Statutes affected:
Bill Text: 63-3024A, 63-3077G, 63-3077H