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H 61

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

68th Legislature, 1st Regular Session (2025)

House Bill 61 boosts Idaho's grocery tax credit to $155 and offers refunds up to $250, providing $50 million in relief to residents, especially low-income families.

Reported Printed and Referred to Revenue & Taxation
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Bill Summary · H 61

Summary of House Bill 61: Food Tax Credits and Refunds

Bill Number: H 61
Introduced On: January 27, 2025
Current Status: Reported Printed and Referred to Revenue & Taxation
Classification: Bill
Subject Areas: Correction Department, Food, Health and Welfare Department, Tax and Taxation, Income

Purpose and Intent

House Bill 61 aims to amend existing tax laws in Idaho to provide increased financial relief to residents through enhanced food tax credits and refunds. The bill seeks to address the financial burden of grocery taxes on individuals and families by increasing the grocery tax credit and offering an alternative refund option based on actual grocery expenses.

Key Provisions

  1. Increased Grocery Tax Credit:

    • The grocery tax credit will be raised from $120 to $155 per person starting in the fiscal year 2026.
    • For individuals aged 65 and older, the credit remains at $155.

  2. Alternative Tax Refund Option:

    • Taxpayers will have the option to receive a full refund of sales tax paid on groceries, up to $250 per person, by itemizing their grocery expenses on their annual income tax returns.
    • This refund option requires taxpayers to submit scanned copies of sales tax receipts along with their tax returns.

  3. Fiscal Impact:

    • The legislation is projected to provide approximately $50 million in tax relief to Idaho residents.
    • It is expected to reduce revenue to the General Fund by about $50 million, with $47 million attributed to the increased credit and $3 million from individuals opting for the full refund.

  4. Information Sharing Agreements:

    • The bill includes provisions for agreements to share information between the Idaho Department of Revenue and the Idaho Department of Correction, as well as the Idaho Department of Health and Welfare.

  5. Technical Corrections and Definitions:

    • The bill makes technical corrections to existing law and defines terms related to food sales and eligible items for tax credits and refunds.

Who Would Be Affected

  • Idaho Residents: All individuals who file income tax returns in Idaho will benefit from the increased grocery tax credit and the option for a refund based on actual grocery expenses.
  • Elderly Individuals: Seniors aged 65 and older will continue to receive the same credit amount as other taxpayers, ensuring equitable treatment.
  • State Revenue: The bill will impact state revenue collections, reducing funds available for other state programs due to the projected tax relief.

Procedural Aspects

  • The bill was introduced and referred to the Revenue & Taxation Committee on January 27, 2025.
  • It is currently under consideration, and further legislative actions will determine its final passage and implementation.

Conclusion

House Bill 61 represents a significant change in Idaho's approach to grocery taxation, aiming to alleviate financial pressures on residents by increasing tax credits and providing a more flexible refund option. If passed, it will enhance the financial well-being of many Idahoans, particularly those with lower incomes or higher grocery expenses.

Compiled from official sources — confirm details with the bill’s official record.

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