From housing to child care, hard-working Idaho families face high costs in our growing state. Since 2018, Idaho’s tax code has supported families through the state Child Tax Credit (CTC). In the American Rescue Plan Act (ARPA), Congress approved a temporary change to expand the definition of “child” to include 17-year-olds in tax year 2021. This year, the Idaho legislature has the opportunity to also include these children in the state child credit by adopting the same definition, on a one-time basis. Idaho legislators should approve the change – included in House Bill 472 – and give a boost to families.
Estimates from the Idaho Tax Commission and the Institute on Taxation and Economic Policy estimate that the cost of including 17-year-old children would be modest, ranging from $5.3 to $7 million and it would help thousands of Idaho families earning moderate incomes. The average one-time tax cut for eligible families with 17-year-olds would range from $202 to $225.