Rating: +1

Bill Summary:

House Bill 231 increases Idaho’s food tax credit and introduces a new optional refund mechanism based on actual sales tax paid on qualifying food purchases. Starting in tax year 2025, the base credit increases to $155 per person, up from $120, with an additional $20 available for senior citizens. Alternatively, taxpayers may opt to submit receipts and claim a refund for up to $250 per person based on actual sales tax paid on eligible food items.

The bill defines “food” using federal SNAP (Supplemental Nutrition Assistance Program) guidelines, specifically excluding candy, soda, hot prepared foods, and restaurant sales. Receipts must be submitted for those choosing the actual-tax-paid option, and fraudulent claims are subject to penalties and clawbacks. The bill also:

• Clarifies that incarcerated individuals and those on food stamps are only eligible for partial-year refunds based on months not receiving public assistance.
• Requires data-sharing agreements between the Idaho State Tax Commission, the Department of Correction, and the Department of Health and Welfare to help verify claims and prevent abuse.
• Allows taxpayers to donate their credit to assist low-income households with home energy costs.

It applies retroactively to January 1, 2025.

Reason for Rating:

HB 231 provides meaningful tax relief to Idaho residents without creating new entitlements or expanding government programs. It strengthens individual choice, transparency, and fiscal responsibility by giving taxpayers two credit options—fixed or itemized—based on their consumption. It also includes built-in protections against fraud and misuse, and encourages voluntary charitable giving, consistent with Idaho Republican Party values. For promoting taxpayer autonomy, reducing the regressive impact of the grocery tax, and tightening welfare oversight, HB 231 earns a +1 rating.