TAXATION – Amends existing law to exempt certain precious metals from capital gains tax, lower the income tax rate, and exempt certain military benefits from income taxation.

Idaho's H 40 bill amends tax code sections to exempt capital gains from gold and silver bullion sales from state taxable income, lower individual and corporate income tax rates, and exempt military retirement pay from state income tax. It directly affects Idaho residents who invest in precious metals, military retirees receiving retirement pay, and businesses subject to corporate income tax. Key provisions include revising Section 63-3022 to exclude bullion transaction gains/losses from taxable income, updating Section 63-3022A to clarify military retirement pay deductions, and adjusting Sections 63-3024 and 63-3025 for lower income tax rates. The law is retroactive to January 1, 2025, and was signed into law by Governor on March 6, 2025.