This year, the federal CARES Act and COVID Relief Act will prompt a number of changes to Idaho’s tax code, should policymakers approve full or partial tax conformity. Conformity is when Idaho aligns its tax code with Federal tax code changes. While policymakers have consistently approved conformity changes in the past, an accurate and reasonable estimate of the cost of these tax changes are important to understand so lawmakers can ensure that other budgetary decisions made this year are sound and fiscally prudent. The costliest potential change of conformity would be the elimination of the pass-through loss limitation. The following is a discussion of the major considerations of this provision should conformity be approved.
Read the full report here: Understanding the Pass-Through Loss Limitation in Conformity