Amends existing law to update references to the current Internal Revenue Code and to revise certain tax credits and adjustments.

This proposed legislation is the annual tax conformity bill to update references to the Internal Revenue Code (IRC). The bill conforms the Idaho income tax code to changes made to the IRC that affect the 2025 tax year. It fully conforms Idaho to the tax changes in the One Big Beautiful Bill with two exceptions: 1. Bonus depreciation which Idaho has historically not conformed to. 2. R&E expenditures incurred from 2022-2024 already being amortized will continue to the end of their 5-year amortization schedule. Any R&E expenditures from 2025 and forward will conform to OBBB. This proposed legislation also ensures that businesses cannot use the same R&E expenses for both a deduction and an Idaho tax credit.