BOISE, Idaho — Gov. Brad Little signed House Bill 380 into law on Monday. The bill will provide Idaho residents $220 million in immediate one-time income tax rebates and $163 million in ongoing income tax relief.
Combined with another tax conformity bill from earlier in the session, Idaho achieved more than $435 million in tax relief for Idaho citizens, according to a news release. This is the single largest tax cut in state history.
“I appreciate my partners in the Legislature for sharing my commitment to tax relief for our citizens. In Idaho, we’re able to achieve historic tax relief because we responsibly manage our budgets. The strength of our economy proves fiscal conservatism works,” Governor Little added.
HB 380 also simplifies the tax code, cutting the number of income tax brackets from seven to five. It lowers the top rate to 6.5%, making Idaho more competitive for existing businesses and more conducive to attracting businesses from elsewhere, according to the release.
The one-time tax relief was achieved through Little's "Building Idaho's Future" plan, which uses the budget surplus to provide Idahoans with tax relief. The plan also makes strategic investments in transportation, education, broadband, water, capital construction and other critical areas.
Gov. Little announced on Twitter Wednesday that his bill box is now empty. Wednesday marked the 122nd day of the Legislative Session, a new record.