House Bill 355 - 2017 Conformity - Amends existing law to clarify what the term “Internal Revenue Code” means for state income tax purposes and to provide adjustments to taxable income for corporations.
We have just received word from the Governor's office that the Governor has signed House Bill 355, bringing Idaho tax law into conformance with IRS Code as of December 21, 2017.
This conformity legislation does include Section 179 that has been made permanent in federal statute. It does not include bonus depreciation. Idaho permanently de-coupled from bonus depreciation in 2014.
The new federal tax act has a couple of provisions that affect the 2017 tax year. The first is lowering the threshold to claim medical expenses from 10%of AGI down to 7.5% of AGI. There also is a provision that requires taxpayers to report and pay tax on the repatriation of previously unreported overseas earnings that could apply to 2017. These are both included in H355.
Please note, we are told there will be additional efforts to address the overseas earnings portion of the bill in a separate "trailer bill." We will keep you posted.