Compare versions
--- version:Bill Text+++ version:(document, no version)@@ -1,2360 +1,298 @@-LEGISLATURE+ST+A+TEMENTOF-THE-STATE-OF-IDAHO-Sixty-eighth-Legislature-Second-Regular-Session---2026-IN-THE-HOUSE-OF-REPRESENTATIVES-HOUSE-BILL-NO.-605-BY-GANNON-AN-ACT-1-RELATING-TO-TAXATION;-AMENDING-CHAPTER-30,-TITLE-63,-IDAHO-CODE,-BY-THE-AD---2-DITION-OF+PURPOSE+RS33234+/+H0605+This+legislation+brings+tax+relief+to+those+who+are+struggling+in+our+Idaho+economy+.+This+includes+adopting+the+new+federal+tips+credit+and+the+overtime+deduction.+The+recent+federal+tax+bill,+HR+1,+provided+a+$6000+deduction+for+seniors,+which+helps+reduce+federal+social+security+taxes+they+pay+.+However+,+Idaho+income+tax+laws+do+not+tax+social+security+so+well+over+half+seniors+will+see+no+tax+relief+on+their+state+tax+return.+Instead,+this+legislation+adds+a+senior+$50+grocery+tax+credit+so+that+all+seniors+receive+some+benefit.+The+$50+increase+combined+with+the+$155+present+credit,+will+of+fset+grocery+taxes+paid+by+seniors+just+as+a+complete+repeal+of+the+grocery+tax+would+do.+FISCAL+NOTE+The+total+fiscal+impact+of+these+three+changes+is+$85+million+calculated,+taking+into+consideration+the+T+ax+Foundation+and+the+low+and+high+of+the+T+ax+Commission+projections.+T+ips:+T+ax:+Foundation+$10.7+Million,+Idaho+T+ax+Commission+$14+to+$22+Million,+EstimatedA-NEW-SECTION-63---3022W,-IDAHO-CODE,-TO-PROVIDE-FOR-SUBTRAC---3-TIONS-TO-IDAHO-TAXABLE-INCOME-FOR-QUALIFIED-TIPS-AND-OVERTIME-COMPENSA---4-TION;-AMENDING-SECTION-63---3024A,-IDAHO-CODE,-TO-REVISE-PROVISIONS-RE---5-GARDING-FOOD-TAX-CREDITS-AND-REFUNDS;-AMENDING-SECTION-63---3077G,-IDAHO-6-CODE,-TO-PROVIDE+verage+$16+Million.+Overtime:+T+ax+Foundation+$78.7+Million,+Idaho+T+ax+Commission+$36+to+$73+Million,+EstimatedA-CORRECT-CODE-REFERENCE;-AMENDING-SECTION-63---3077H,-7-IDAHO-CODE,-TO-PROVIDE-A-CORRECT-CODE-REFERENCE;-AND-DECLARING-AN-EMER---8-GENCY-AND-PROVIDING-RETROACTIVE-APPLICATION.-9-Be+verage+$55+Million.+Grocery+T+ax+Credit+increase+for+Seniors:+Individuals+claiming+increase+in+2023+280,000+and+cost+of+this+increase+based+on+that+$14+Million.+Contact:+Representative+John+Gannon+(208)+332-1000+DISCLAIMER:+This+statement+of+purpose+and+fiscal+note+ar+e+a+mer+e+attachment+to+this+bill+and+pr+epar+ed+by+a+pr+oponent+of+the+bill.It-Enacted-by-the-Legislature-of-the-State-of-Idaho:-10-SECTION-1.-That-Chapter-30,-Title-63,-Idaho-Code,-be,-and-the-sameis-1-1-hereby-amended-by-the-addition-thereto-of-a-NEW-SECTION-,-to-be-known-and-des---12-ignated+neither+intendedas-Section-63---3022W,-Idaho-Code,-and-to-read-as-follows:-13-63---3022W.-QUALIFIED-TIPS-AND-OVERTIME-COMPENSATION.-(1)-For-taxable-14-years-beginning-on-or-after-January-1,-2026,-and-before-January-1,-2029,-in-15-computing-Idaho-taxable-income,-there-shall-be-subtracted-from-federal-ad---16-justed-gross-income:-17-(a)-The-amount-of-qualified-tips,-as-defined-in-section-224-of-the-In---18-ternal-Revenue-Code-as-added-by-P.L.-119---21,-received-by-the-taxpayer-19-during-the-taxable-year,-subject-to-the-limitations,-phase---outs,-and-20-other-provisions-provided-in-such-section;-and-21-(b)-The-premium-portion-of-qualified-overtime-compensation,-as-defined-22-in-section-225-of-the-Internal-Revenue-Code-as-added-by-P.L.-119---21,-re---23-ceived-by-the-taxpayer-during-the-taxable-year,-subject-to-the-limita---24-tions,-phase---outs,-and-other-provisions-provided-in-such-section.-25-(2)-The-state-tax-commission-may-prescribe-rules,-subject-to-legisla---26-tive-approval,-as-necessary-to-implement-the-provisions-of-this-section.-27-SECTION-2.-That-Section-63---3024A,-Idaho-Code,-be,-and-the-same-is-hereby-28-amended-to-read-as-follows:-29-63---3024A.-FOOD-TAX-CREDITS-AND-REFUNDS.-(1)-Any-resident-individual-30-who-is-required-to-file-and-who-has-filedan-Idaho-income-tax-return-shall-31-be-allowed-a-credit-against-taxes-due-under-the-Idaho-income-tax-act-for-the-32-taxpayer,-the-taxpayer's-spouse,-and-each-dependent,-as-defined-in-section-33-152-of-the-Internal-Revenue-Code,-claimed-on-the-taxpayer's-Idaho-income-tax-34-return-and-awarded-by-the-court-under-section-32---706,-Idaho-Code,-if-appli---35-cable.-For-tax-year-2022,-the-credit-is-one-hundred-dollars-($100).-For-tax-36-years-2023-and-2024,-the-credit-is-one-hundred-twenty-dollars-($120).-For-37-tax-year-2025-and-each-year-thereafter,-the-credit-is-one-hundred-fifty---five-38-dollars-($155).-If-taxes-due-are-less-than-the-total-credit-allowed,-the-tax---39-payer-shall-be-paid-a-refund-equal-to-the-balance-of-the-unused-credit.-40--2-(2)-A-resident-individual-who-is-not-required-to-file-an-Idaho-income-1-tax-return-and-for-whom-no-credit-or-refund-is-allowed-under-any-other-subsec---2-tion-of-this-section-shall,-subject-to-the-limitations-of-subsections-(3),-3-(4),-(5),-(6),-and-(7)-,-and-(8)-of-this-section,-be-entitled-to-a-refund-in-the-4-amount-provided-in-subsection-(1)-of-this-section.-5-(3)-A-resident-individual-who-has-reached-sixty---five-(65)-years-of-age-6-before-the-end-of-the-taxable-year-and-who-has-claimed-the-credit-available-7-under-subsection-(1)-of-this-section,-in-addition-to-the-amount-of-credit-or-8-refund-due-under-subsection-(1)-of-this-section,-shall-be-entitled-to-fifty-9-dollars-($50.00),-which-shall-be-claimed-as-a-credit-against-any-taxes-due-10-under-the-Idaho-income-tax-act.-If-taxes-due-are-less-than-the-total-credit-1-1-allowed,-the-individual-shall-be-paid-a-refund-equal-to-the-balance-of-the-12-unused-credit.-13-(3)-(4)-Except-as-provided-in-subsection-(8)-(9)-of-this-section,-a-14-credit-or-refund-under-this-section-is-available-only-if-the-individual-for-15-whom-a-personal-exemption-is-claimed-is-a-resident-of-the-state-of-Idaho.-16-(4)-(5)-In-no-event-shall-more-than-one-(1)-taxpayer-be-allowed-a-credit-17-or-refund-for-the-same-personal-exemption-or-under-more-than-one-(1)-subsec---18-tion-of-this-section.-19-(5)-(6)-In-the-event-that-a-credit-or-refund-is-attributable-to-any-indi---20-vidual-for-whom-assistance-under-the-federal-food-stamp-program-was-received-21+expr+ession+of+legislative+intent+nor+intendedforany-month-or-part-of-a-month-during-the-taxable-year-for-which-the-credit-22-or-refund-is-claimed,-the-credit-or-refund-allowed-under-this-section-shall-23-be-in-proportion-to-the-number-of-months-of-the-year-in-which-no-assistance-24-was-received.-25-(6)-(7)-In-the-event-that-a-credit-or-refund-is-attributable-to-any-indi---26-vidual-who-has-been-incarcerated-for-any-month-or-part-of-a-month-during-the-27-taxable-year-for-which-the-credit-or-refund-is-claimed,-the-credit-or-refund-28-allowed-under-this-section-shall-be-in-proportion-to-the-number-of-months-of-29-the-year-in-which-the-individual-was-not-incarcerated.-30-(7)-(8)-No-credit-or-refund-shall-be-paid-that-is-attributable-to-an-in---31-dividual-residing-illegally-in-the-United-States.-32-(8)-(9)-Any-part---year-resident-entitled-to-a-credit-under-this-section-33-shall-receive-a-proportionate-credit-reflecting-the-part-of-the-year-in-which-34-he-was-domiciled-in-this-state.-35-(9)-(10)-In-lieu-of-the-flat-tax-credit-amounts-provided-in-subsection-36-(1)-of-this-section,-a-resident-taxpayer-may-elect-for-the-taxpayer,-the-tax---37-payer's-spouse,-and-each-dependent,-as-defined-in-section-152-of-the-Internal-38-Revenue-Code,-claimed-on-such-taxpayer's-Idaho-income-tax-return,-the-actual-39-amount-of-sales-tax-paid-by-such-persons-on-food-purchases-that-took-place-40-in-Idaho-during-the-taxable-year,-up-to-a-maximum-of-two-hundred-fifty-dol---41-lars-($250)-per-person.-To-make-this-election,-the-taxpayer-shall-indicate-42-this-choice-on-the-taxpayer's-tax-return-or-application-and-submit-scanned-43-copies-of-sales-tax-receipts-of-qualifying-food-purchases-along-with-the-tax-44-return-or-application.-If-taxes-due-are-less-than-the-total-credit-allowed,-45-the-taxpayer-shall-be-paid-a-refund-equal-to-the-balance-of-the-unused-credit.-46-The-provisions-of-section-63---3042A,-Idaho-Code,-shall-not-apply-to-the-credit-47-provided-in-this-section.-If-a-taxpayer-meets-the-qualifications-under-the-48-provisions-of-subsection-(5)-(6)-of-this-section,-such-taxpayer-shall-not-be-49-eligible-for-the-credit-under-this-subsection.-If-a-taxpayer-misrepresents-50--3-the-amount-of-sales-tax-paid-on-food-purchases-on-such-taxpayer's-tax-return-1-or-application,-the-amounts-that-were-improperly-claimed-shall-be-subject-2-to-recovery-by-the-state-tax-commission-pursuant-to-section-63---3045,-Idaho-3-Code,-and-the-taxpayer-shall-be-subject-to-the-penalties-provided-in-sections-4-63---3046-and-63---3075(b),-Idaho-Code.-5-(a)-For-the-purposes-of-this-subsection,-"food"-means-the-sale-of-food-6-sold-for-human-consumption-and-shall-have-the-same-definition-as-pro---7-vided-in-7-U.S.C.-2012-as-that-section-existed-on-January-1,-2025.-The-8-types-and-kinds-of-food-products-on-which-sales-tax-qualifies-as-credit-9-by-this-section-shall-be-the-same-types-and-kinds-of-food-products-that-10-are-eligible-for-purchase-with-benefits-provided-under-the-federal-sup---1-1-plemental-nutrition-assistance-program-and-shall-not-include-candy,-12-soda,-restaurant-sales-of-food,-food-sold-in-a-heated-state-or-heated-by-13-a-retail-seller,-two-(2)-or-more-food-ingredients-mixed-or-combined-by-a-14-retail-seller-for-a-single-sale,-or-food-sold-with-an-eating-utensil-pro---15-vided-by-the-retail-seller-such-as-a-plate,-knife,-fork,-spoon,-glass,-16-cup,-napkin,-or-straw.-17-(b)-For-the-purposes-of-paragraph-(a)-of-this-subsection:-18-(i)-"Candy"-means-a-preparation-of-sugar,-honey,-or-other-natural-19-or-artificial-sweeteners-combined-with-chocolate,-fruits,-nuts,-20-or-other-ingredients-or-flavorings-in-the-form-of-confections,-21-bars,-drops,-or-pieces.-"Candy"-does-not-include-any-item-that-22-contains-more-than-ten-percent-(10%)-flour-by-weight-or-requires-23-refrigeration.-24-(ii)-"Soda"-means-any-nonalcoholic-beverage-that-contains-natural-25-or-artificial-sweeteners.-"Soda"-does-not-include-beverages-that-26-contain-milk-or-milk-substitutes,-greater-than-fifty-percent-(50%)-27-of-vegetable-or-fruit-juice-by-volume,-or-that-require-preparation-28-before-consumption,-such-as-powders-or-concentrates.-29-(10)-(11)-Any-refund-shall-be-paid-to-such-individual-only-upon-his-30-making-application-therefor,-at-such-time-and-in-such-manner-as-may-be-31-prescribed-by-the-state-tax-commission.-The-state-tax-commission-shall-32-prescribe-the-method-by-which-the-refund-is-to-be-made-to-the-taxpayer.-The-33-refunds-authorized-by-this-section-shall-be-paid-from-the-state-refund-fund-34-in-the-same-manner-as-the-refunds-authorized-by-section-63---3067,-Idaho-Code.-35-(11)-(12)-An-application-for-any-refund-that-is-due-and-payable-under-the-36-provisions-of-this-section-must-be-filed-with-the-state-tax-commission-within-37-three-(3)-years-of:-38-(a)-The-due-date,+use+outside+of+the+legislative+pr+ocess,including-extensions,-of-the-return-required-under-39-section-63---3030,-Idaho-Code,-if-the-applicant-is-required-to-file-a-re---40-turn;-or-41-(b)-The-fifteenth-day-of-April-of-the-year-following-the-year-to-which-42-the-application-relates,-if-the-applicant-is-not-required-to-file-a-re---43-turn.-44-(12)-(13)-The-state-tax-commission-shall-provide-income-tax-payers-with-45-the-irrevocable-option-of-donating-credited-funds-accruing-pursuant-to-this-46-section.-Any-funds-so-donated-shall-be-remitted-from-the-refund-fund-to-the-47-cooperative-welfare-fund,-created-pursuant-to-section-56---401,-Idaho-Code,-48-and-shall-be-used-solely-for-the-purpose-of-providing-low---income-Idahoans-49-with-assistance-in-paying-home-energy-costs.-50--4-SECTION-3.-That-Section-63---3077G,-Idaho-Code,-be,-and-the-same-is-hereby-1-amended-to-read-as-follows:-2-63---3077G.-AGREEMENT-FOR-EXCHANGE-OF-INFORMATION-WITH-THE-IDAHO-DE---3-PARTMENT-OF-CORRECTION.-The-state-tax-commission-and-the-Idaho-department-of-4-correction-shall-enter-into-a-written-agreement-for-exchange-of-information-5-relating-to-an-individual's-incarceration-status-and-whether-that-indi---6-vidual-has-claimed-the-Idaho-food-tax-credit-pursuant-to-section-63---3024A,-7-Idaho-Code.-Such-information-shall-be-confidential-to-the-recipient-and-may-8-be-used-by-the-Idaho-department-of-correction-and-the-state-tax-commission-9-only-for-purposes-of-determining-whether-an-incarcerated-person-erroneously-10-claimed-the-food-tax-credit-in-violation-of-section-63---3024A(6)-63---3024A(7)-,-1-1-Idaho-Code.-No-such-information-shall-be-public-unless-it-is-used-in-the-12-course-of-ajudicial-proceeding-arising-under-the-laws-of-this-state.-The-13-information-provided-by-the-state-tax-commission-shall-be-limited-to-name,-14-date-of-birth,-social-security-number,-an-indication-as-to-whether-the-food-15-tax-credit-was-claimed-under-that-person's-name-or-social-security-number-for-16-a-particular-taxable-year-and-incarceration-status-during-the-year-at-issue.-17-SECTION-4.-That-Section-63---3077H,-Idaho-Code,-be,-and-the-same-is-hereby-18-amended-to-read-as-follows:-19-63---3077H.-AGREEMENT-FOR-EXCHANGE-OF-INFORMATION-WITH-THE-IDAHO-DE---20-PARTMENT-OF-HEALTH-AND-WELFARE.-The-state-tax-commission-and-the-Idaho-21-department-of-health-and-welfare-shall-enter-into-a-written-agreement-for-22-exchange-of-information-relating-to-an-individual's-receipt-of-federal-food-23-stamp-benefits-and-whether-that-individual-has-claimed-the-Idaho-food-tax-24-credit-pursuant-to-section-63---3024A,-Idaho-Code.-Such-information-shall-25-be-confidential-to-the-recipient-and-may-be-used-by-the-Idaho-department-of-26-health-and-welfare-and-the-state-tax-commission-only-for-purposes-of-de---27-termining-whether-a-person-who-was-receiving-federal-food-stamp-benefits-28-erroneously-claimed-the-food-tax-credit-in-violation-of-section-63---3024A(5)-29-63---3024A(6)-,-Idaho-Code.-No-such-information-shall-be-public-unless-it-is-30-used-in-the-course-of-a-judicial-proceeding-arising-under-the-laws-of-this-31-state.-Any-information-disclosed-by-the-Idaho-department-of-health-and-32-welfare-pursuant-to-the-provisions-of-this-section-must-be-disclosed-in-33-compliance-with-the-privacy-act-of-1974,-5-U.S.C.-552a,-applicable-federal-34-law-or-regulations-regarding-public-assistance-programs-and-any-applicable-35-state-law-or-regulation.-36-SECTION-5.-An-emergency-existing-therefor,-which-emergency-is-hereby-37-declared-to-exist,-this-act-shall-be-in-full-force-and-effect-on-and-after-its-38-passage-and-approval,-and-retroactively-to-January-1,-2026.-39+r+eview+(Joint+Rule+18).+Statement+of+Purpose+/+Fiscal+Note+Bill+SOP/FN+INTRODUCED:+02/06/2026,+9:12+AM
Diffs are computed deterministically from extracted bill text and show additions, deletions, and section moves. Scanned-PDF text extracted via OCR is flagged where confidence is low; see methodology.