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Senate raises Idaho grocery tax credit to $155 per person amid partisan floor debate
Summary
House Bill 2-31 increases the refundable grocery tax credit from $120 to $155 per person and includes an option to claim receipts up to $250. Senators debated whether the credit is an adequate substitute for full grocery-tax repeal and whether credits delay relief compared with at-register tax removal.
Boise — The Idaho Senate on March 5 approved House Bill 2-31 to raise the state's refundable grocery tax credit from $120 to $155 per person, making the credit uniform across ages. The bill passed amid partisan debate over whether a credit is sufficient relief compared with a full repeal of the grocery tax at the register.
What the bill does: Sponsors said the change increases direct relief available when filing 2025 Idaho income taxes, and the credit remains refundable (residents who owe no income tax can receive a refund). The bill also allows taxpayers who can document higher food purchases to submit receipts (scannable) to claim up to $250 for the year.
Floor debate: Supporters called the measure a pragmatic, immediate way to return more revenue to Idaho families; sponsor Senator Rex described the benefit for an example family of four as an increase to $620 versus $480 under the prior credit. Opponents — including senators who argued for full at-register repeal — said credits delay relief, are administratively difficult for low-income or older Idahoans who do not file returns, and that Idaho should instead eliminate the grocery tax at point of sale. Senator Seidenfeld and others called the increase “bread crumbs” compared with total grocery tax revenue collected.
Fiscal and logistics notes: Sponsors estimated the change costs roughly $50 million statewide (floor figures). The Tax Commission’s existing refund procedures would continue to make the credit available for those who did not file returns in the prior year. Receipt-based supplemental claims require taxpayers to retain and submit itemized receipts.
Vote and next steps: The Senate passed HB 2-31 by roll call; the vote was recorded as a majority in favor when tallied (final recorded count on third reading showed the bill passed). The bill will be returned to the House for further action or concurrence.
