House passes bill raising Idaho food tax credit, allows optional itemized refunds

BOISE — The Idaho House of Representatives on Feb. 14 passed House Bill 231, a measure that raises the state food tax credit and creates an optional refund based on taxpayers' documented sales-tax payments on food. The chamber approved the bill 61-6, with three members absent or excused; the bill includes an emergency clause making much of it retroactive to Jan. 1, 2025.

Supporters said the bill increases direct relief to Idaho taxpayers while preserving some tax revenues from visitors and nonresidents. “All we're trying to do here is give more money back,” said Representative, District 22 (sponsor). The measure raises the flat credit and allows residents who choose to document purchases to claim refunds equal to actual sales taxes paid on qualifying food purchases, up to a statutory per-person cap.

Under the bill as passed, the flat food tax credit will be $155 for tax year 2025 and each year thereafter (it had been $100 for 2022 and $120 for 2023–24). In lieu of the flat credit, a resident taxpayer may elect to claim the actual amount of sales tax paid on qualifying food purchases during the taxable year, up to a maximum of $250 per person; to do so, the taxpayer must indicate the choice on the return or application and submit scanned copies of sales-tax receipts as prescribed by the State Tax Commission. The tax code language adopted in the bill ties the definition of "food" to the federal definition in 7 U.S.C. 2012 as it existed on Jan. 1, 2025, and excludes candy, soda, meals sold ready-to-eat by restaurants and other enumerated items.

The bi…