Senate passes tax-conformity bill updating Idaho code to match federal law

BOISE — The Idaho Senate on Monday passed House Bill 3, the annual tax conformity bill, adopting changes necessary to align Idaho’s tax code with federal taxable income definitions as of Jan. 1, 2025.

Senator Groh, sponsor of the measure on the floor, described House Bill 3 as the annual mechanism by which Idaho “puts us in compliance with the federal side of things,” saying that this year’s bill made no substantive changes to Idaho tax law but updated the statutory reference point to match federal law as of Jan. 1, 2025.

Floor debate was limited. Several senators supported the bill’s technical goal of avoiding duplication and simplifying tax preparation by beginning Idaho returns from federal taxable income. During the roll call, the Senate recorded 32 votes in favor and 3 against; the clerk announced that House Bill 3 had passed the Senate and the title was approved for return to the House.

Senator Tara Shippey explained her aye vote from the floor while also stating a separate position on marriage policy: “Some have raised concerns that incorporating the federal tax code by reference could [be important] for simplicity and fairness for my constituents. I’m a yes on this bill, but I want to be clear, I fully support traditional marriage as defined in our state constitution,” she said.

Senator Sito offered a brief floor explanation opposing the bill: “I support the tax conformity part of this bill. However, I will be a no on this bill because it violates federal government overreach into the rights of our state to define marriage,” he said, and then recorded his intention to vote no. The clerk announced the final tally as 32 in favor and 3 opposed.

The measure was advanced after the Senate dispensed with further reading and completed a roll-call vote. The Senate will return the bill to the House of Representatives with the Senate’s amendments and approval.

House Bill 3 is an annual statutory housekeeping measure that updates Idaho’s statutory references to conform with changes in federal tax law and is commonly used to avoid inconsistencies between federal and state tax computations for Idaho taxpayers.