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Committee introduces RS 31789 to align Idaho tax law with federal code
Summary
The House Revenue and Taxation Committee voted to introduce RS 31789, an annual conformity measure that would align Idaho tax definitions with the Internal Revenue Code; sponsors said there is no fiscal impact and urged prompt action ahead of the filing season.
The Idaho House Revenue and Taxation Committee voted to introduce RS 31789, a measure to conform state income-tax definitions to the Internal Revenue Code, during a committee meeting. Representative Jeff Ehlers, District 21, Meridian, presented the item and said the change is routine and intended to reduce taxpayer confusion.
Representative Jeff Ehlers, District 21, Meridian, told the committee, "This is an annual bill that we bring forward. What it does is it allows the state of Idaho to conform to the IRS tax code." He said the conformity allows taxpayers to use federal calculations as the basis for state filings rather than redoing work for both returns.
Ehlers said there were no substantive changes from the previous year and that the measure mostly "moves the date forward" for conformity. When Representative Gannon asked whether there was any fiscal impact or federal changes that would affect Idaho, Ehlers replied there was "no fiscal impact," adding that he expected potential federal changes in 2025 that could alter next year's discussions.
Representative Cheatham asked about "internal revenue code section 85" and why it is treated differently under state law. Ehlers said he believed Section 85 is a primary section containing definitions of taxable income and deductions and that RS 31789 is intended to align Idaho definitions with those federal definitions.
Representative Shepherd moved to introduce RS 31789. The motion was put to a voice vote; committee members responded "aye," and the chair announced the motion carried and that RS 31789 was introduced. The committee recorded no fiscal impact and cited urgency because the Idaho Tax Commission was set to begin accepting returns on Jan. 15, which, the sponsor said, would raise questions from taxpayers if state conformity were not addressed before the filing window opened.
The committee concluded its business and adjourned. The committee chair asked members to watch for schedule notices by email.
