IRS Conformity: Idaho will conform to the IRS code for tax years beginning in 2022 except for the following codes:
- Idaho will not conform to the federal unemployment exemption for tax year 2020
- Idaho will not conform to the lifting of the 461(i) noncorporate business loss
House Bill 472 – Effective January 1, 2022
Tax Rate Reduction: Individual income tax rates now range from 1% to 6%. This change is affected as of 2021.
House Bill 436 – Effective January 1, 2022
SALT (State and Local Taxes) Workaround: "Trusts, estates, and tiered pass-through entities can now be members of the entity making the affected business entity (ABE) election for the SALT workaround. Also, the ABE pays the permanent building fund tax on behalf of nonresident owners only. The SALT workaround allows entities to pay tax for its members as a workaround for the $10,000 limit on the federal deduction for state and local taxes."
Bonus Depreciation: "A 2021 law revised Idaho Code so that Idaho taxable income doesn’t include a bonus depreciation add-back if the depreciation couldn’t be used on the federal return.
In 2022, the statute of limitations extends to anyone who filed without adding back the bonus depreciation expense amount as allowed by this law on or after January 1, 2016."
House Bill 714 – Effective January 1, 2021
Credit for certain taxes paid: A law was passed to extend the statute of limitations to claim credit for certain taxes paid to 10 years from 3 years.
House Bill 715 – Effective January 1, 2022
Tax exemption for trusts for vehicles: Personally owned vehicle use tax exemption now applies to the grantor trusts. If a person or trust purchases a vehicle, the exemption will now apply up to 90 days after bringing the vehicle into Idaho.
Certain semiconductor project exemption: Semiconductor companies may now get an exemption from use and sales tax for construction and or building materials used to expand, construct, or modernize a semiconductor facility in Idaho. This exemption applies to qualifying projects and must have advance requests and signed agreements with the Idaho Department of Commerce.
Property Tax: Homeowners hos home value is assessed at more than $300,000 or 150% of their country's median price will no longer qualify for the Property Tax Reduction program. They may instead apply for the Property Tax Deferral program instead.