United States

Idaho: Second Conformity Bill Enacted; Additional Bills Pending

Mar 19, 2018
From KPMG TaxWatch

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Idaho’s second conformity bill, House Bill 463, was signed into law on March 12, 2018. This bill makes minor amendments to House Bill 355, which addressed conformity for the 2017 tax year, and also addresses the 2018 tax year. Under House Bill 463, the term "Internal Revenue Code" means, for taxable years beginning on any day of 2017, the Internal Revenue Code of 1986, as amended, and in effect on December 21, 2017. However, Internal Revenue Code sections 965 and 213, are applied as in effect on December 31, 2017 (post-tax reform). For tax years beginning on or after January 1, 2018, Internal Revenue Code means the Internal Revenue Code of 1986 as amended and in effect on January 1, 2018.  House Bill 463 requires an addback of amounts deducted under Internal Revenue Code sections 245A, 250, and 965. House Bill 624, which is pending signature, provides that for tax years beginning on any day in 2017 Internal Revenue Code sections 108, 163, 168(e), 168(i), 179D, 179E, 181, 199, 222 and 451 are applied as in effect on February 9, 2018. House Bill 684, which has passed the House, would strike provisions requiring taxpayers to add back amounts deducted under 965 effective for tax years beginning on or after January 1, 2018. Finally, House Bill 659, which has not moved since being introduced on March 6, 2018, would revise the taxation of amounts included in income as a result of mandatory repatriation and would not require taxpayers to add back the amount deducted as a result of having foreign derived intangible income under 250(a)(1)(A). Recall, under recently enacted House Bill 463, all amounts deducted under section 250 must be added back. Please stay tuned to TWIST for future conformity updates.

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The following information is not intended to be "written advice concerning one or more federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.