Bill > H0061

This bill amends Idaho's food tax credit law to increase the tax credit amount for residents, introduce a new optional tax credit based on actual food sales tax paid, and update information-sharing agreements between state agencies. Specifically, the bill raises the annual food tax credit from $120 to $155 starting in 2025 and provides an alternative option for taxpayers to claim a credit for the actual sales tax paid on food purchases, up to $250 per person. To qualify for this new optional credit, taxpayers must submit scanned receipts of qualifying food purchases, with "food" defined according to federal supplemental nutrition assistance program guidelines, excluding items like candy, soda, and prepared meals. The bill also mandates (rather than allowing) information-sharing agreements between the state tax commission and the Idaho Department of Correction and the Idaho Department of Health and Welfare to verify eligibility for the food tax credit, ensuring that individuals who were incarcerated or receiving food stamp benefits during the tax year receive proportional credits. The bill includes provisions for penalties if taxpayers misrepresent their food sales tax payments and will take effect immediately upon passage, applying retroactively to January 1, 2025.

Budget and Finance

Revenue and Taxation Committee (H)

https://legislature.idaho.gov/sessioninfo/2025/legislation/H0061/