FOR IMMEDIATE RELEASE
Wednesday, April 1, 2026
The Senate is Sending a Solution
BOISE, Idaho — Senate leadership today announced the introduction of Senate Bill 1450 to indefinitely extend the Idaho Child Tax Credit, which would otherwise have expired on January 1, 2026. Senators are publicly calling on the Idaho House of Representatives not to let this credit silently disappear. We must support this vital extension and ensure hardworking Idaho families are not faced with a surprise tax increase for the current year.
Originally enacted during the 2018 legislative session to shield Idahoans from unintended hikes due to changes in the federal tax code, the state’s nonrefundable $205 per-child credit provides approximately $66 million to $68 million in targeted tax relief to families each year. The Senate played a pivotal role in ensuring the credit truly offset tax changes; when the House initially passed House Bill 463 with a mathematically insufficient $130 credit—which would have resulted in a net tax increase for large families—the Senate intervened by passing House Bill 675 to raise the credit to the current $205 figure.
If the House allows this credit to remain expired, the highly publicized income tax rate reductions championed during the 2025 legislative session will be more than neutralized for many families with children. The Idaho Center for Fiscal Policy estimates that, even after accounting for last year’s tax relief in H40 and H231, families earning between $55,600 and $91,800 may still face an estimated annual net tax increase of $100 if the credit is not extended.
“Allowing the Child Tax Credit to expire is not fiscal conservatism; it is a stealth tax hike squarely on the backs of Idaho’s working parents,” Pro Tem Senator Anthon stated. “We made a promise to large families in 2018 that they would not be penalized by federal tax conformity. We intend to keep that promise.”
The Senate completely rejects the narrative that extending the credit represents an unaffordable new expenditure. In fact, the revenue offset is already budgeted for. The General Fund Revenue Book for January 2025 projected $67.4 million for the Child Income Tax Credit for 2026, as well as $67.9 million for 2027. Nonpartisan forecasters have continued to bake these figures into our fiscal baseline, and a change of course is not required.
Notably, the credit also sustains local economies by ensuring tens of millions of dollars are immediately recirculated into Idaho’s localized retail, agricultural, and service sectors each year. Its elimination, especially on such short notice, would curtail families’ spending and reduce other tax revenues indirectly.
Senate leadership refuses to let this essential relief slip away from families to artificially inflate state revenues. We are formally calling on House leadership to bring the extension to the floor, hold a vote, and do the right thing for Idaho’s hardworking parents.
Contact:
Senator Kelly Anthon, Senate President Pro Tempore
(208) 431-5863 | [email protected]
Senator Ben Toews, Senate Majority Caucus Chair
(208) 332-1322 | [email protected]
About Idaho Senate Republican Caucus
The Senate Republican Caucus is committed to preserving freedom, promoting personal responsibility, and delivering commonsense solutions that reduce regulatory burdens and support Idaho’s small businesses. Visit their website at https://www.idahosenategopcaucus.com/
