All Roll Calls
Yes: 89 • No: 10
IdahoH 06452026 regular legislative sessionHouseWALLET
PORTABLE BENEFIT PLAN ACT – Adds to existing law to establish the Portable Benefit Plan Act.
Sponsored By: BUSINESS COMMITTEE
Signed by Governor
PORTABLE BENEFIT PLAN ACT
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 3 benefits, 0 costs, 2 mixed.
Contractors exclude benefit contributions from income
Beginning July 1, 2026, independent contractors do not count hiring-party contributions to their portable benefit account as taxable income. The exclusion is 100% of the contributed amount for that tax year. This lowers the contractor’s state income taxes.
Tax write-off for contractor benefits
Beginning July 1, 2026, hiring parties can deduct 100% of what they put into a contractor’s portable benefit account. The deduction lowers taxable business income dollar-for-dollar in that tax year. This only covers contributions made to these accounts.
Portable benefit accounts for contractors
Beginning July 1, 2026, independent contractors can own a portable benefit account. Anyone can add money, including app-based platforms. You choose a third-party provider, and plans are in your name, not the hiring party’s. You can buy disability, health, income replacement, life, retirement, and unemployment insurance. The Idaho Department of Insurance can approve banks, investment firms, and technology managers to offer these accounts.
Contributions don’t make contractors employees
Beginning July 1, 2026, a hiring party’s payments into a portable benefit account cannot be used as proof that a worker is an employee under labor, tax, or workers’ comp laws. The law also defines an independent contractor as someone paid for a result, where the principal controls only the result, not how the work is done. This sets clearer lines for classification and who can use these accounts.
Optional pay withholding to fund benefits
Beginning July 1, 2026, part of a contractor’s pay can be withheld to fund a portable benefit account only if the contractor opts in. The agreement must be written, clear, and shown in the contract or on a separate invoice. The contractor can opt out at any time. Withholding reduces take-home pay but helps build benefits.
Sponsors & Cosponsors
Sponsor
BUSINESS COMMITTEE
Affiliation unavailable
Cosponsors
Lori Den Hartog
Republican • Senate
Jason A. Monks
Republican • House
Roll Call Votes
Senate vote • 3/17/2026
Senate Floor Vote
Yes: 25 • No: 7
House vote • 2/26/2026
House Floor Vote
Yes: 64 • No: 3
Actions Timeline
Reported Signed by Governor on March 23, 2026 Session Law Chapter 106 Effective: 07/01/2026
3/24/2026Delivered to Governor at 2 p.m. on March 19, 2026
3/19/2026Returned Signed by the President; Ordered Transmitted to Governor
3/19/2026SenateSigned by President; returned to House
3/18/2026SenateReceived from the House enrolled/signed by Speaker
3/18/2026SenateReported Enrolled; Signed by Speaker; Transmitted to Senate
3/18/2026HouseReturned from Senate Passed; to JRA for Enrolling
3/17/2026HouseRead third time in full – PASSED - 25-7-3
3/17/2026SenateRetained on calendar
3/16/2026SenateRead second time; filed for Third Reading
3/11/2026SenateReported out of Committee with Do Pass Recommendation; Filed for second reading
3/10/2026SenateIntroduced, read first time; referred to: Commerce & Human Resources
2/27/2026SenateReceived from the House passed; filed for first reading
2/27/2026SenateRead Third Time in Full – PASSED - 64-3-3
2/26/2026HouseRead second time; Filed for Third Reading
2/25/2026HouseReported out of Committee with Do Pass Recommendation, Filed for Second Reading
2/24/2026HouseReported Printed and Referred to Business
2/13/2026HouseIntroduced, read first time, referred to JRA for Printing
2/12/2026House
Bill Text
Bill Text
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