Bill > H0519

This bill updates Idaho's tax laws by revising how the state references the federal Internal Revenue Code, specifically changing the reference date from January 1, 2025, to January 1, 2026, for most provisions, while maintaining an earlier date for a specific section. It also modifies the income tax credit for capital investments, clarifying that certain expenses claimed as deductions under section 174 of the Internal Revenue Code, which relate to research and development, will no longer be eligible for this capital investment credit. Additionally, the bill adjusts the tax credits for research activities conducted in Idaho, also disallowing credits for expenses that have been claimed as deductions under section 174 of the Internal Revenue Code, and it includes provisions for carrying forward unused credits for up to fourteen years. The bill declares an emergency and provides for retroactive application to January 1, 2025.

Budget and Finance

Revenue and Taxation Committee (House)

https://legislature.idaho.gov/sessioninfo/2026/legislation/H0519/