Idaho Center for Fiscal Policy: Exploring Working Family Tax Credit Options in Idaho
ITEP Work in ActionIdahoans believe that everyone should pay their fair share. But the passage of the federal Tax Cuts and Jobs Act in December 2017 raised concerns about potential negative impacts on Idaho families with children. If Idaho chooses to update its tax code to align fully with the federal changes (a policy choice called ‘conformity’), an estimated 66 percent of Idaho families with 1 to 2 dependents will see a state tax increase and 80 percent of Idaho families with 3 or more dependents will see a state tax increase. To mitigate these negative impacts, Idaho lawmakers are considering the creation of state tax credits for working families.