This bill amends several sections of the Idaho Code related to taxation, specifically addressing individual, corporate, and estate taxes, as well as the child tax credit. Notably, it revises the tax rates for individuals and corporations, changing the individual tax rate from five and three-tenths percent (5.3%) to five and three hundred twenty-five thousandths percent (5.325%). The corporate tax rate will also see a gradual reduction, culminating in a rate of five and three hundred twenty-five thousandths percent (5.325%) starting January 1, 2026. Additionally, the bill repeals the Idaho Parental Choice Tax Credit and its associated advance payment fund, while also amending provisions related to the child tax credit by removing the expiration date for the credit, which was previously set for January 1, 2026.

The bill includes a provision that allows for the transfer of unobligated cash from the Idaho parental choice tax credit advance payment fund to the general fund by July 1, 2026. It declares an emergency, making the changes effective immediately upon passage and retroactively applicable to January 1, 2026, for certain sections. The repeal of the Idaho Parental Choice Tax Credit and its advance payment fund signifies a significant shift in the state's approach to tax credits aimed at parental choice in education.

Statutes affected:
Bill Text: 63-3024, 63-3025, 63-3029L, 63-3029N, 67-1230