Idaho Gov. Butch Otter has signed a $200 million tax cut plan into law.
The governor on Monday approved the measure, which includes an emergency clause, making it retroactive to January 1st.
The plan reduces personal income and corporate tax rates, and creates a $130 Idaho child tax credit. The law is designed to offset the increase in taxes Idaho families are expected to pay under the recent Republican tax plan signed by President Donald Trump.
Changing the state’s tax brackets would lower Idaho’s $3.5 billion general fund by nearly $160 million, and implementing the child tax credit would slash the fund by an additional $42 million.
However, lawmakers are hoping to expand the tax credit from $130 to $205 before the end of session.
Despite the $200 million figure, the actual net tax savings is about half that amount. (AP)