S 1450

                    LEGISLATURE OF THE STATE OF IDAHO
 Sixty-eighth Legislature  Second Regular Session - 2026
                                 IN THE SENATE
                             SENATE BILL NO. 1450
                          BY STATE AFFAIRS COMMITTEE
1AN ACT
2  RELATING TO TAXATION; AMENDING SECTION 63-3029L, IDAHO CODE, TO REVISE A
3      PROVISION REGARDING THE CHILD TAX CREDIT; AND DECLARING AN EMERGENCY
4      AND PROVIDING RETROACTIVE APPLICATION.
5  Be It Enacted by the Legislature of the State of Idaho:
6      SECTION 1. That Section 63-3029L, Idaho Code, be, and the same is hereby
7  amended to read as follows:
863-3029L. CHILD TAX CREDIT. (1) For taxable years beginning on or af-
9  ter January 1, 2018, and before January 1, 2026, there shall be allowed to a
10 taxpayer a nonrefundable credit against the tax imposed by this chapter in
11 the amount of two hundred five dollars ($205) with respect to each qualifying
12 child of the taxpayer. For purposes of this section, the term "qualifying
13 child" has the meaning as defined in section 24(c) of the Internal Revenue
14 Code. In no event shall more than one (1) taxpayer be allowed this credit for
15 the same qualifying child. This credit is available only to Idaho residents.
16 Any part-year resident entitled to a credit under this section shall receive
17 a proportional credit reflecting the part of the year in which the part-year
18 resident was domiciled in Idaho.
19      (2) In the case of divorced parents or parents who do not live together,
20 if the qualifying child is in the custody of one or both of the child's par-
21 ents for more than one-half of a calendar year, such child is the qualifying
22 child of the custodial parent for the taxable year beginning during such cal-
23 endar year. However, the child may be the qualifying child of the noncusto-
24 dial parent if either of the following requirements are met:
25      (a) A court of competent jurisdiction has unconditionally awarded, in
26      writing, to the noncustodial parent the tax benefits associated with
27      the child pursuant to section 32-706, Idaho Code, and the noncustodial
28      parent attaches a copy of the court order to the noncustodial parent's
29      income tax return for the taxable year; or
30      (b) The custodial parent signs a written declaration that such custo-
31      dial parent will not claim the credit of this section with respect to
32      such child for any taxable year beginning in such calendar year and the
33      noncustodial parent attaches such written declaration to the noncusto-
34      dial parent's income tax return for the taxable year beginning during
35      such calendar year.
36     SECTION 2. An emergency existing therefor, which emergency is hereby
37 declared to exist, this act shall be in full force and effect on and after its
38 passage and approval, and retroactively to January 1, 2026.