Idaho proposal describes a $205 credit for qualifying children

The proposal describes a nonrefundable Idaho tax credit of $205 for each qualifying child. A qualifying child has the meaning given in section 24(c) of the federal Internal Revenue Code. Only one taxpayer may claim the credit for a child. The credit is for Idaho residents; part-year residents receive a share based on the part of the year they lived in Idaho. The credit applies to tax years beginning on or after January 1, 2018, and before January 1, 2026.

The proposal describes when a noncustodial parent may claim the credit. These rules concern divorced parents or parents who do not live together. These rules apply when the child was in the custody of one or both parents for more than half the calendar year. The noncustodial parent may claim the credit with either an unconditional written court order awarding the tax benefits and a copy attached to the return, or a signed statement from the custodial parent agreeing not to claim the credit and that statement attached to the return. The rules apply to the tax year beginning during the calendar year in which the child was in a parent's custody for more than half the year.

The proposal says the act would take effect upon passage and approval and apply retroactively to January 1, 2026. This clause applies to the act as a whole. The act takes effect only upon passage and approval. The stated retroactive date is January 1, 2026.