IRS Conformity: Beginning in tax year 2021 (January 1, 2020), the state of Idaho will conform with the Internal Revenue Code (IRC), with the exception of Bonus Depreciation for assets acquired after 2009.
Tax Rate Reduction: Effective January 1, 2021, all tax rates have been decreased. Individual income tax rates now range from 1% to 6.5%, and the number of tax brackets has been reduced from seven to five.
Preserving Limited Losses: Idaho taxpayers can keep the benefit of losses that exceed the federal limit and carry them forward as an Idaho net operating loss up to 20 years. This provision is retroactive to January 1, 2018.
Bonus Depreciation: Add-back Limited to Benefit: Idaho taxable income only includes the bonus depreciation add-back to the extent the depreciation could be used on the federal return. Passive loss and other basis carryovers will have to be adjusted accordingly.