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IdahoH 02312025 regular legislative sessionHouseWALLET

FOOD TAX CREDITS AND REFUNDS – Amends existing law to increase the food tax credit and to provide an alternative tax credit for the actual amount paid by taxpayers on food purchases.

Sponsored By: REVENUE AND TAXATION COMMITTEE

Signed by Governor

FOOD TAX CREDITS AND REFUNDS

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 0 benefits, 2 costs, 2 mixed.

Higher Idaho food credit with eligibility limits

Starting with tax year 2025, Idaho’s yearly flat food tax credit rises from $120 to $155 per eligible person. Any amount above income taxes owed is paid back from the State Refund Fund. Qualifying residents who do not need to file can also claim a refund, but cannot collect another refund for the same person. Only one credit is allowed per personal exemption, and dependents must be Idaho residents. Amounts are reduced for part-year Idaho residency and exclude months when a person received SNAP or was incarcerated. People living in the United States illegally are not eligible. Filers must claim within three years of the tax filing due date; nonfilers must claim by the following April 15. The Tax Commission can allow people to donate their credit or refund to the Cooperative Welfare Fund for low-income home energy assistance.

Idaho food receipts unlock larger tax refunds

Starting with tax year 2025, Idaho residents can choose a credit for actual Idaho sales tax paid on qualifying food. The yearly limit is $250 per person, and any credit above taxes owed is refundable. This replaces the flat credit; taxpayers cannot claim both. Claimants must choose this option on a return or application and submit scanned receipts for purchases during that tax year. SNAP recipients face a separate eligibility bar for this option. Qualifying food follows federal SNAP definitions as of January 1, 2025, with added exclusions. Candy, soda, restaurant meals, heated food, specified seller-mixed foods, and food sold with retailer-provided eating utensils do not qualify. Candy excludes products with more than 10% flour by weight or products requiring refrigeration. Soda excludes milk or milk-substitute drinks, drinks with more than 50% juice, and drinks requiring preparation before drinking. Claims are subject to verification, and false or improper claims can trigger repayment and penalties.

Seniors lose extra $20 food credit

Starting with tax year 2025, Idaho ends the extra $20 food tax credit for residents age 65 by year-end. The add-on previously went to seniors who claimed the regular food credit. Seniors can still claim the regular credit, now $155 per eligible person, but receive no separate age-based amount.

Idaho agencies cross-check food credit claims

Effective retroactively to January 1, 2025, Idaho requires written agreements for sharing food credit claim information across agencies. The Tax Commission must exchange incarceration information with the Department of Correction and SNAP information with Health and Welfare. Agencies can use the information only to check whether incarcerated people or SNAP recipients claimed food credits incorrectly. Recipients must keep the information confidential, and Health and Welfare disclosures must follow federal and state privacy laws. Tax Commission information shared with corrections is limited to specified identifying details, claim status, tax year, and incarceration status.

Sponsors & Cosponsors

Sponsor

  • REVENUE AND TAXATION COMMITTEE

    Affiliation unavailable

Cosponsors

  • Monks & Scott

    Affiliation unavailable

  • Ricks & Nichols

    Affiliation unavailable

Roll Call Votes

All Roll Calls

Yes: 91 • No: 9

Senate vote • 3/5/2025

Senate Floor Vote

Yes: 30 • No: 3

House vote • 2/14/2025

House Floor Vote

Yes: 61 • No: 6

Actions Timeline

  1. Reported Signed by Governor on March 13, 2025 Session Law Chapter 56 Effective: Retroactive to 01/01/2025

    3/14/2025

  2. Delivered to Governor at 8:10 a.m. on March 11, 2025

    3/11/2025

  3. Returned Signed by the President; Ordered Transmitted to Governor

    3/10/2025Senate

  4. Signed by President; returned to House

    3/10/2025Senate

  5. Received from the House enrolled/signed by Speaker

    3/10/2025Senate

  6. Reported Enrolled; Signed by Speaker; Transmitted to Senate

    3/7/2025House

  7. Returned from Senate Passed; to JRA for Enrolling

    3/6/2025House

  8. Read third time in full – PASSED - 30-3-2 Floor Sponsors - Ricks & Nichols

    3/5/2025Senate

  9. Read second time; filed for Third Reading

    2/21/2025Senate

  10. Reported out of Committee with Do Pass Recommendation; Filed for second reading

    2/20/2025Senate

  11. Introduced, read first time; referred to: Local Government & Taxation

    2/17/2025Senate

  12. Received from the House passed; filed for first reading

    2/17/2025Senate

  13. PASSED - 61-6-3 Floor Sponsors - Monks & Scott

    2/14/2025House

  14. Rules Suspended: Ayes 62 Nays 6 Abs/Excd 2, read in full as required – Motion to send to Gen Ord, motion failed

    2/14/2025House

  15. Reported Printed; Filed for Second Reading

    2/14/2025House

  16. Introduced, read first time, referred to JRA for Printing

    2/13/2025House

Bill Text

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