House Bill 108 Summary

• Allows resident individuals to claim a credit for income taxes paid to another state on income derived from that state's sources while domiciled in Idaho, including pass-through entities such as S corporations, partnerships, limited liability companies, estates, and trusts.

• Requires states' tax computations that do not allow the qualified business deduction under Internal Revenue Code Section 199A or other Idaho modifications to be recomputed to allow those deductions or modifications.

• Limits the credit to the proportion of Idaho tax that income from the other state bears to total income, calculated using adjusted gross income for individuals and federal total income for estates and trusts.

• Authorizes the State Tax Commission to require documentation including payment receipts, tax returns filed with the other state, and qualified business deduction calculations to substantiate the credit claim.

• Takes effect immediately upon passage and approval, with retroactive application to January 1, 2023.