TAXATION – Amends existing law to allow the income tax deduction of legal fees and medical expenses related to the acquisition of a donated embryo.

Idaho's H 462 expands the state's tax deduction for adoption-related expenses to include legal fees and medical costs associated with the acquisition and transfer of a donated embryo that results in a live birth. The bill allows adoptive parents to deduct these expenses (capped at $10,000 total) in the tax year of the live birth, plus costs from the three prior years related to the embryo process. It applies specifically to families using donated embryos for assisted reproduction leading to childbirth, mirroring existing adoption deduction rules. The change takes effect retroactively from January 1, 2025, and requires the embryo procedure to result in a live birth to qualify for the deduction.