TAXATION – Amends existing law to extend the Child Tax Credit indefinitely.
Summary
S1450 would make Idaho’s existing child tax credit permanent by removing its current sunset date of January 1, 2026. The credit, first enacted in 2018, is a non-refundable $205 credit for each qualifying child. The bill is framed as a family tax relief measure intended to help offset the costs of raising children in Idaho.
According to the statement of purpose, the measure does not create a new expected impact on the state general fund because state economic forecasts already assumed the credit would continue. The bill would therefore preserve the current tax treatment rather than create a new program or expand eligibility. If the credit were allowed to expire, the state would collect more revenue and Idaho families would pay more in taxes, but S1450 prevents that change by making the credit indefinite.
Impact
The bill amends Idaho tax law to eliminate the sunset on the child tax credit, effectively codifying it as a permanent feature of the state tax code. It continues a non-refundable income tax credit of $205 per qualifying child, benefiting families with children and reducing state general fund revenue by the amount associated with the existing credit. The bill affects taxpayers claiming the credit and preserves the current fiscal policy beyond 2026.
Sentiment
The available materials suggest broadly favorable sentiment toward the bill, with sponsors describing it as a pro-family tax relief measure. There is no recorded committee debate or vote history in the provided context, and no opposition is documented in the excerpts. The fiscal note also indicates that the state’s revenue forecasts already assumed continuation of the credit, which may reduce controversy over its budget impact.
Contention
The main point of contention is the fiscal tradeoff between family tax relief and state revenue. Supporters emphasize that the credit helps families offset child-rearing costs and should be made permanent, while the fiscal note acknowledges the credit reduces general fund revenue by roughly $63–$65 million annually. If the credit were not extended, the state would gain approximately $66 million in FY 2027, so any opposition would likely center on the loss of revenue and the decision to forego that funding.
Amends existing law to increase the food tax credit and to provide an alternative tax credit for the actual amount paid by taxpayers on food purchases.
Amends existing law to exempt certain precious metals from capital gains tax, lower the income tax rate, and exempt certain military benefits from income taxation.
Amends existing law to increase the food tax credit, to provide an alternative tax credit for the actual amount paid by taxpayers on food purchases, and to provide for certain agreements to share information.