BOISE — A two-hour public hearing on Idaho’s tax conformity bill brought concerns from Idahoans who feared cuts or eliminations of state programs if business and personal income tax provisions were adopted by the state. The bill seeks to adopt a variety of personal and business income tax changes enacted by the One Big Beautiful Bill over the summer, including new deductions for tips, overtime and seniors.
After being introduced last week, House Bill 559 on Monday went before the House Revenue & Taxation Committee, which voted on party lines to send the bill to the House floor.
It marks the second effort from Rep. Jeff Ehlers, R-Meridian, to bring forward a bill conforming with these changes that he estimates will reduce revenues for the state by $155 million for this fiscal year and $175 million for the next. While this is similar to the $155 million revenue reduction projected by Gov. Brad Little in his budget recommendations, Ehlers’ bill notably differs from Little’s in seeking to make the tax changes retroactive to the 2025 tax year, rather than begin starting in tax year 2026…