Idaho Tax Credits: What You Need to Know

As an Idaho resident or business owner, understanding the various tax credits available can have a significant impact on your financial situation. Tax credits can reduce your overall tax liability, putting more money back into your pocket. In this comprehensive guide, we will explore some of the key tax credits offered in the Gem State and what you need to know to take advantage of them.

1. Idaho Child Tax Credit

The Idaho Child Tax Credit is designed to help families with dependent children. This credit can provide substantial relief to families facing the costs of raising children.

Who Qualifies: Idaho residents with dependent children under the age of 18 may qualify for this credit.

Credit Amount: The credit amount varies based on your income and the number of children you have. It is $205 per child .

Income Limit: There is an income limit to qualify for this credit, so be sure to check the latest guidelines to determine your eligibility.

The Idaho Child Tax Credit recognizes the financial strain that comes with raising children and aims to provide meaningful assistance to families across the state. To ensure you receive this credit, make sure to accurately report your child’s information and meet the income requirements.

2. Grocery Tax Credit

The Grocery Tax Credit is aimed at providing relief to individuals and families by partially offsetting taxes on groceries, an essential expense for everyone.

Who Qualifies: Most Idaho residents are eligible for this credit, making it accessible to a wide range of taxpayers.

Credit Amount: The amount of the Grocery Tax Credit varies based on your income, family size, and location within Idaho. It can be a valuable benefit, particularly for lower and middle-income households.

Filing Requirement: To claim the Grocery Tax Credit, you must file an Idaho income tax return. Be sure to provide accurate income and family size information to maximize your credit.

Given that groceries are a fundamental expense, the Grocery Tax Credit helps ease the financial burden on families and individuals while promoting food security across the state.

3. Idaho Property Tax Reduction Program

For homeowners, the Property Tax Reduction Program can be a significant relief, especially in areas with higher property taxes.

Who Qualifies: Idaho residents who own and live in their primary residence may qualify for property tax reduction.

Income Limit: There is an income limit to qualify for this program, and the amount of the reduction depends on your income and property taxes.

The Property Tax Reduction Program acknowledges the importance of homeownership and provides assistance to those who may be struggling with high property tax bills. By reducing the financial strain on homeowners, this program aims to support stable communities across Idaho.

4. Idaho Adoption Tax Credit

If you’ve adopted a child, you may be eligible for an adoption tax credit in Idaho, helping offset the costs associated with adopting a child.

Who Qualifies: Idaho residents who have adopted a child can claim this credit, making adoption more accessible for families.

Credit Amount: The credit amount varies, but it covers qualified adoption expenses, which can include adoption fees, court costs, attorney fees, and travel expenses.

Adopting a child is a significant and often expensive process. The Idaho Adoption Tax Credit recognizes the importance of adoption and aims to provide financial support to families who are opening their hearts and homes to children in need.

5. Idaho Historic Structure Rehabilitation Credit

This credit is designed to promote the preservation and rehabilitation of historic buildings, contributing to the state’s cultural heritage and economic growth.

Who Qualifies: Property owners who rehabilitate and maintain eligible historic structures can claim this credit.

Credit Amount: The credit can cover up to 21% of eligible rehabilitation expenses, encouraging property owners to invest in the restoration and preservation of historically significant buildings.

The Idaho Historic Structure Rehabilitation Credit recognizes the value of preserving the state’s history and architectural heritage. By offering tax incentives to property owners, it encourages the revitalization of historic structures, which can lead to increased tourism and economic development in the surrounding areas.

6. Idaho Renewable Energy System Tax Credit

For those interested in renewable energy, this credit encourages the installation of renewable energy systems, contributing to a more sustainable future.

Who Qualifies: Idaho residents and businesses that invest in eligible renewable energy systems can claim this credit.

Credit Amount: The credit covers a percentage of the system’s cost, depending on the type and size of the system. It can be a significant incentive for those looking to adopt green energy solutions.

The Idaho Renewable Energy System Tax Credit promotes environmental responsibility by rewarding individuals and businesses for investing in renewable energy sources like solar panels or wind turbines. By reducing the financial barriers to adopting clean energy technologies, this credit contributes to a greener and more sustainable Idaho.


Understanding and taking advantage of tax credits in Idaho can lead to significant savings for individuals and businesses alike. These credits are designed to provide financial relief, promote important initiatives, and stimulate economic growth within the state.

While we have covered several key tax credits in this guide, it’s important to note that tax laws and regulations may change over time. Therefore, staying informed about the latest updates and seeking professional tax advice is crucial to ensure you maximize your available tax credits while remaining compliant with Idaho’s tax regulations.

Remember that tax credits are a valuable tool for managing your tax liability and improving your financial well-being. By taking advantage of these opportunities, you can make the most of your hard-earned money and contribute to a stronger, more prosperous Idaho.

Ilir Nina CPA, EA, MSAT

Ilir Nina CPA, EA, MSAT

The Owner Ilir Nina is an experienced CPA and Enrolled Agent. He also obtained a Master’s of science of accountancy and taxation at Boise State in 2009. He has two undergraduate degrees (accountancy & information systems). He has prepared taxes in Boise area for over 15 years and also has many years in tax resolution.

Over the years he has prepared tons of Individual, business and nonprofit returns. He also has represented many clients successfully in front of the IRS. Has filed many successful offers in compromise and helped clients by settling IRS liabilities for less (literally pennies on the dollar). Ilir is honest and he will tell you the truth. He will fight for you hard and solve all your tax wows. He is a trusted Idaho CPA. We encourage you to call and talk to us and let’s see what Ilir can do for you.

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