Bill > H0231

This bill amends Idaho's food tax credit law to increase the tax credit amount for food purchases and provide taxpayers with a new optional method for claiming the credit. For tax year 2022, the existing flat credit remains $100, which increases to $120 for tax years 2023-2024, and then rises to $155 for tax year 2025 and beyond. The bill introduces an alternative approach where taxpayers can choose to claim a credit for the actual sales tax paid on food purchases in Idaho, up to $250 per person, instead of the standard flat credit. To claim this alternative credit, taxpayers must submit scanned receipts proving their food purchases. The bill defines "food" using federal supplemental nutrition assistance program guidelines, excluding items like candy, soda, restaurant meals, and prepared foods. The legislation also makes technical corrections to other sections of the tax code, including provisions for information sharing between the state tax commission and departments of correction and health and welfare to verify eligibility for the food tax credit. The bill will take effect immediately upon passage and apply retroactively to January 1, 2025.

Budget and Finance

Revenue and Taxation Committee (H)

https://legislature.idaho.gov/sessioninfo/2025/legislation/H0231/