IdahoH 07222026 regular legislative sessionHouseWALLET

TAXATION – Amends existing law to revise provisions regarding certain rate-regulated electric companies and gas companies.

Sponsored By: REVENUE AND TAXATION COMMITTEE

Signed by Governor

TAXATION

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 0 benefits, 3 costs, 1 mixed.

Taxes on wind, solar, and geothermal producers

From January 1, 2026, wind and geothermal electricity producers pay a 3% tax on gross earnings. Solar electricity producers pay a 3.5% tax on gross solar earnings. For property that is exempt under state law, these energy taxes replace other property taxes on that property.

Utility tax filings, estimates, and penalties

Utilities must file an annual sales statement by April 15 for the prior year starting in 2026, plus semiannual reports from 2027 (Sep 15 for Jan–Jun; Apr 15 for Jul–Dec). The Commission bills Jan–Jun taxes by the first Monday in November (due December 20) and Jul–Dec taxes by the first Monday in June (due June 20). The Commission also estimates current‑year taxes, bills by the fourth Monday in May, and those estimated taxes are due by June 30 and then paid out to counties. Late taxes add a 5% penalty and 1% interest per month; taxes become a lien on all company property until paid; if a company fails to file, the Commission will estimate sales. A dedicated rate‑regulated tax fund holds receipts and pays county treasurers.

How Idaho shares new energy taxes

Starting in 2026, the State Tax Commission splits kWh and thermal tax money to each county using 2025 property tax levies and urban renewal allocations. County auditors must certify those 2025 amounts by January 12, 2026. If a district or revenue area ends, or a bond expires, its share goes to the other eligible local districts the next year; when districts merge, the new district gets the sum of prior shares. County auditors must give estimates by the law’s July/August notice deadline and pay them by the fourth Monday of August; those payments count as property tax revenue under state budget‑limit rules, and solar taxes reduce the levy a district must raise. New taxing districts or revenue areas formed after January 1, 2025 do not receive these distributions.

New energy taxes on power and gas bills

Beginning January 1, 2026, electricity sold to Idaho retail customers is taxed $0.000923 per kWh. Natural gas is also taxed: $0.010802 per therm for affiliated regulated sellers, $0.00329 per therm for regulated sellers, and $0.00041 per therm for transport deliveries. Out‑of‑state sales reported in the same filing are excluded. By January 1, 2027, utilities must show these taxes as a separate line on your bill, and base rates are adjusted if they already covered these taxes. The law is in force and applies retroactively to January 1, 2026.

Sponsors & Cosponsors

Sponsor

REVENUE AND TAXATION COMMITTEE
Affiliation unavailable

Cosponsors

Doug Ricks
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 34 • No: 0

House vote • 3/24/2026

House Floor Vote