Tax News

CCH (cch.taxgroup.com) reports:

  Idaho has enacted legislation that conforms its corporate and personal income tax provisions to the Internal Revenue Code (IRC) as in effect on February 17, 2009 (previously, January 1, 2009), thereby incorporating amendments to federal provisions adopted by Idaho that were made by the American Recovery and Reinvestment Act of 2009 (2009 Recovery Act) (P.L. 111-5).

  The legislation also deletes the specific reference to the federal additional standard deduction for property taxes available to individuals who do not itemize their deductions. [CCH Note: This language was redundant as Idaho incorporated this provision through the general conformity date update.]

  The IRC provisions added, amended, or deleted prior to February 17, 2009, are applicable for Idaho income tax purposes on the effective date of the federal changes, including retroactive provisions.

  According to the fiscal note accompanying the bill, by updating the IRC conformity date Idaho adopts the following 2009 Recovery Act temporary tax incentives that will affect Idaho taxable income:

  -- the suspension of personal income tax on the first $2,400 of unemployment benefits per recipient received during calendar year 2009;

  -- the increase in the standard deduction by the sales and excise taxes paid on new cars, light trucks, recreational vehicles, and motorcycles purchased between February 17, 2009, and December 31, 2009, with limitations;

  -- the extension of the elections for bonus depreciation and increased IRC §179 deduction;

  -- the deferral of the recognition of certain cancellation of debt income;

  -- the increase in the exclusion from 50% to 75% for capital gains from the sale of certain small business stock held more than five years; and

  -- the temporary reduction in the holding period of assets with built-in gains in S corporations that were once C corporations from 10 to seven years.

  Subscribers can view the text of the bill.

 
Ch. 228 (H.B. 281), Laws 2009, effective January 1, 2009