House Bill 251 – which passed the Idaho House on March 2 and now moves to the Senate – is legislation that creates a new state-level income tax-exemption for federal relief payments given to businesses through the Paycheck Protection Program (PPP) forgiven loans, Economic Injury Disaster Loans (EIDL), and Idaho Rebounds Grants. The new exemption will have a considerable fiscal impact for at least two years because PPP loans were issued in 2020 and will continue in 2021 and possibly beyond. A conservative fiscal impact could start at $84.4 million in FY21. With another round of PPP loans issued in early 2021, this legislation will also have a fiscal impact in FY22.
Read the full report here: Analysis and Considerations Related to House Bill 251