Bill > H0559

This bill updates Idaho's tax laws by revising how the state references the federal Internal Revenue Code, specifically changing the effective date for the code from January 1, 2025, to January 1, 2026, with certain exceptions for research expenditures. It also modifies provisions related to tax adjustments for depreciable property, particularly concerning bonus depreciation and how it interacts with federal loss limitations, ensuring that taxpayers don't receive unintended tax benefits or double deductions. Additionally, the bill revises the tax credit for research activities conducted in Idaho, clarifying that expenses deducted or amortized under federal law for research and development (R&D) cannot also be claimed for this state credit, and it allows for unused credits to be carried forward for up to fourteen years. The bill also includes provisions for how these credits are handled for combined corporate groups and pass-through entities like S corporations and partnerships, and it declares an emergency, making these changes effective retroactively to January 1, 2025.

Budget and Finance

Revenue and Taxation Committee (House)

https://legislature.idaho.gov/sessioninfo/2026/legislation/H0559/