The House Revenue & Taxation Committee has voted unanimously in favor of Rep. Mike Moyle’s bill to increase the new child tax credit that was created by the earlier tax-cut bill, HB 463, to relieve the burden on large Idaho families who otherwise would see a state income tax increase – though several committee members argued vociferously against the bill before the vote, saying it doesn’t go far enough.
“I appreciate Rep. Moyle for trying to make it right, but this is still really a poor way to do fiscal policy,” said Rep. Mat Erpelding, D-Boise.
The bill, HB 675, now moves to the full House. It would raise the new non-refundable credit from $130 per child to $205 per child, at an estimated cost of $25 million a year.
Under the $200 million-plus income tax cut bill that’s already passed both houses, families with three or more children would actually see an increase in their Idaho state income taxes, due to the interplay between federal tax code changes and Idaho’s tax laws. The $130 per child tax credit sought to partially offset that, but it would take $287 per child to fully offset it.