Bill > H0605

This bill, effective retroactively to January 1, 2026, amends Idaho tax law by introducing new deductions and increasing a tax credit for seniors. Specifically, it allows individuals to subtract qualified tips and the premium portion of qualified overtime compensation from their Idaho taxable income for tax years beginning between 2026 and 2029, with the State Tax Commission authorized to create necessary rules. Additionally, the bill significantly revises the food tax credit, increasing the annual credit amount for individuals and their dependents to $155 starting in 2025, and importantly, provides an additional $50 credit for residents aged 65 and older, which can be refunded if it exceeds taxes owed. The bill also clarifies provisions regarding the food tax credit, including limitations for those receiving food stamp benefits or who have been incarcerated, and specifies what constitutes "food" for the credit, excluding items like candy, soda, and restaurant meals. Finally, it updates code references related to information exchange agreements between the State Tax Commission and the Departments of Correction and Health and Welfare to ensure proper enforcement of the food tax credit provisions.

https://legislature.idaho.gov/sessioninfo/2026/legislation/H0605/