Bill > H0760

This bill amends existing Idaho law to revise property tax exemptions for low-income housing owned by nonprofit organizations, granting county commissioners discretion to exempt all or part of the property's taxes. To qualify, an organization must be a nonprofit corporation, have federal tax-exempt status under section 501(c)(3) of the Internal Revenue Code, and ensure no profits or tax benefits go to individuals or for-profit entities beyond normal employee compensation. The low-income housing itself must be owned and operated by a qualified nonprofit or a related entity, and tenants cannot be evicted for inability to pay due to a catastrophic event, defined as a sudden, serious, and unexpected medical condition certified by a physician. A significant portion of the housing units must be dedicated to low-income housing, with specific percentages rented to individuals earning 60% or less of the area median gross income, and rents must comply with federal guidelines (26 U.S.C. 42). Owners must now submit annual certifications of compliance, and the bill introduces a process for preliminary determinations on exemption eligibility before project completion, as well as specific application requirements and an "affordability period" tied to federal low-income housing tax credits. The exemption will not apply to properties financed or in service before July 1, 2026, unless they are being rehabilitated or already receiving the exemption. The bill also includes provisions for hardship exemptions and clarifies that properties receiving this exemption will not be included on new construction rolls unless the exemption is removed. Finally, the bill declares an emergency and sets an effective date of July 1, 2026.

Budget and Finance

Revenue and Taxation Committee (House)

https://legislature.idaho.gov/sessioninfo/2026/legislation/H0760/