Bill Description: House Bill 342 would create the “choose life Idaho fund,” add to the list of charitable organizations that taxpayers can receive an income tax credit for supporting, and increase the cap for this credit.
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Does it violate the principle of equal protection under the law? Examples include laws that discriminate or differentiate based on age, gender, or religion or which apply laws, regulations, rules, or penalties differently based on such characteristics. Conversely, does it restore or protect the principle of equal protection under the law?
House Bill 342 would create Section 57-829, Idaho Code, to establish the "choose life Idaho fund" in the state treasury. The money in this fund would be appropriated to "choose life Idaho, inc." This organization describes itself as an "all-volunteer, non-profit, 501(c)(3) organization dedicated to supporting Idaho’s compassionate, pro-life Pregnancy Resource Centers who empower mothers to choose a life plan for their babies."
The bill would also amend Section 63-3067A, Idaho Code, to add the "choose life Idaho fund" to the list of recipients to which taxpayers can designate a portion of their state income tax refund.
The bill would also amend Section 63-3029C, Idaho Code, to add "choose life Idaho, inc." to the list of favored charities that taxpayers could receive a special income tax credit for supporting. The bill would also add to this list "a nonprofit pregnancy resource center or maternity home located within the state of Idaho that provides life-affirming counseling, care, and assistance for women and families to encourage alternatives to abortion and that have tax-exempt status pursuant to section 501(c)(3) of the Internal Revenue Code."
Creating special funds, donation opportunities, and tax credits to benefit specific charities gives them a significant advantage in appealing to donors, and this disadvantages other charities that are excluded from this list. It would be far more appropriate for donations to any 501(c)(3) to qualify for this income tax credit for charitable contributions, rather than limiting it to a handful of favored charities.
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Does it directly or indirectly create or increase any taxes, fees, or other assessments? Conversely, does it eliminate or reduce any taxes, fees, or other assessments?
The income tax credit for charitable contributions to the charities listed in Section 63-3029C, Idaho Code, is available to both individuals and corporations. The credit is for 50% of the donor's aggregate donations within the tax year. For individual taxpayers, the credit is capped at 20% of the taxpayer's total state income tax liability or $100, whichever is less. For corporate taxpayers, the credit is capped at 10% of the corporation's total state income or franchise tax liability or $500, whichever is less.
House Bill 342 would increase these percentages to 35% for individual taxpayers and 25% for corporate taxpayers and remove the fixed dollar caps.
The bill's fiscal note estimates this increase would result in $12 million in additional donations and $6 million in tax credits.
While it would be more appropriate for this credit to apply to all charitable giving as discussed above, increasing these caps would be an indirect tax reduction for taxpayers who make charitable donations to any of the applicable charities listed in this statute.
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