Bill Description: Senate Bill 1450 would extend the $205 nonrefundable child tax credit by removing the sunset date of January 1, 2026. 

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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?

For the last eight years, Idaho has had a $205-per-child, nonrefundable child tax credit, applicable to the state income tax, but that credit is set to expire on January 1, 2026.

Senate Bill 1450 would amend Section 63-3029L, Idaho Code, to remove this ending date, effectively making the child tax credit permanent. 

The bill’s fiscal note estimates that this credit saves Idaho taxpayers $63-$65 million per year. 

It’s worth noting that the bill’s fiscal note also states that the Division of Financial Management assumed the tax credit would continue and built that assumption into its revenue forecasts. Consequently, extending this credit will not reduce anticipated revenue. 

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