H0559 Idaho Tax Law to Conform To Federal Tax Code

OPPOSE - This bill largely conforms Idaho tax law to the federal “One Big Beautiful Bill,” with changes applied retroactively to tax year 2025. It includes provisions such as no tax on tips, no tax on overtime, and an enhanced senior deduction. It excludes certain elements, including bonus depreciation (which Idaho has historically not adopted), while maintaining the existing amortization schedule for R&E (R&D) expenditures from 2022–2024.

We oppose this legislation because it comes amid significant budget cuts to address an existing revenue shortfall. Further reducing revenues to fund these tax changes places additional strain on an already stressed state budget. Estimated impacts vary widely but include projected revenue losses of approximately $155 million in FY26 and $175 million in FY27.

As with other tax cut measures, the downstream effects are likely to be felt across essential public services that Idahoans rely on every day.

This legislation was signed into law on February 10, 2026