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Idaho enacts 2025 federal tax changes, cutting taxes on tips and overtime, expanding senior deductions, and allowing full corporate research deductions, costing $155 million this year.
Idaho Governor Brad Little signed HB 559, adopting most federal tax changes from the 2025 "Big, Beautiful Bill" into state law, effective retroactively from January 1, 2025.
The law includes tax cuts on workers’ tips and certain overtime pay, expanded senior deductions, and permanent full deduction for research expenses for corporations.
It will cost Idaho $155 million in the current fiscal year and $175 million in 2027, with additional administrative costs.
The state tax commission, facing budget cuts, may face delays in processing refunds, potentially costing $3.5 million in interest.
The bill passed with near party-line support, despite concerns over budget impact and incomplete conformity, particularly on past research deductions.
Idaho promulga cambios fiscales federales para 2025, recortando impuestos sobre propinas y horas extras, expandiendo las deducciones para personas mayores y permitiendo deducciones completas de investigación corporativa, con un costo de $155 millones este año.