Bill > H0040

This bill amends Idaho state tax law to make several key changes: first, it introduces a new provision that allows taxpayers to add or subtract capital gains or losses specifically related to precious metal bullion and monetized bullion when calculating their state income tax. Additionally, the bill reduces the state income tax rate from 5.695% to 5.3% for both individual and corporate taxpayers, lowering the tax burden across the board. The bill also modifies existing language around retirement benefits, particularly for military retirees, by expanding the conditions under which military retirement benefits can be deducted from taxable income. Specifically, military retirement benefits can now be deducted regardless of the recipient's age or disability status, with a caveat that those under 62 who are not disabled must have been employed and earned enough to require filing a federal tax return. The bill is designed to take effect immediately upon passage and will apply retroactively to January 1, 2025, providing tax relief and clarification for Idaho taxpayers in the specified tax year.

Budget and Finance

Revenue and Taxation Committee (H)

https://legislature.idaho.gov/sessioninfo/2025/legislation/H0040/