Gov. C.L. “Butch” Otter has signed a sweeping $200 million tax cut into law.
Otter approved the measure on March 12. The new law includes an emergency clause, making it retroactive to Jan. 1.
The plan reduces personal income and corporate tax rates and creates an Idaho child tax credit. The law is designed to offset the increase in taxes Idaho families are expected to pay under the recently signed Republican tax plan signed by President Donald Trump.
Changing the state’s tax brackets would lower Idaho’s $3.5 billion general fund by $159.6 million and implementing the child tax credit would slash the fund by an additional $42.3 million — totaling nearly $200 million. However, lawmakers are hoping to expand the tax credit from $130 to $205 before the end of session, which means the tax cut law could jump to $225 million.