Idaho Senate sends tax conformity bill back to House

BOISE, Idaho (CBS2) — House Bill 559, which conforms to all tax provisions within the One Big Beautiful Bill of 2025, was discussed by the Idaho Senate on Friday. Earlier this week, the bill was sent to the House floor with a “do pass” recommendation.

The places this bill differs from federal tax policy are in bonus depreciation, a provision allowing businesses to take a large deduction on qualifying property within the property’s first year of service. Idaho has historically decoupled from this provision and will continue to do so in this bill.

House Bill 559 follows a plan implemented by Delaware requiring businesses under a current amortization agreement to finish that agreement in full to spread the fiscal impact into future years.

The bill’s sponsor, Rep. Jeff Ehlers, R-Meridian, said in his opening remarks that the decision to make the taxes retroactive is to “capture the full benefit for individuals.” He said he believes the fiscal impact of a $155 million reduction in revenues for fiscal year 2026 and $175 million for fiscal year 2027 is “reasonable.”

The Senate voted to return it to the House with a 28-7 pass vote. It now heads to the governor’s desk.