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Business Incentives


THE IDAHO CORPORATE ADVANTAGE
How to Qualify:
* Create at least 500 new jobs in Idaho with a starting annual salary of at least $50,000, or jobs that pay an average of $60,000 a year, plus benefits.
* Invest at least $50 million in new headquarters or administrative buildings.
* Do all of the above within a five-year period.


The Incentives:

* A 6 percent investment tax credit with no credit limitation.
* An enhanced jobs tax credit starting at $1,000 per job and climbing to $3,000 per job.
* A 10 percent real property improvement tax credit of up to $500,000 in any one year.
* A temporary tax abatement for new headquarters and administrative buildings of up to $2 million in any year.
* A temporary sales tax abatement for materials used in construction of the new buildings.

 

THE IDAHO BUSINESS ADVANTAGE
How to Qualify:
* The business must create at least 10 new jobs paying above $40,000/year ($19.23/hour) plus benefits.
* The average wage of any additional new employee must be $15.50/hour plus benefits. This is computed using only wages between $12/hour and $48.08/hour to determine the numerator and the number of employees receiving wages less than $48.08/hour as the denominator.


The Incentives:

* Investment Tax Credit of 3.75% - The credit is limited to 62.5% of the taxpayer's tax or $750,000 whichever is less for the taxable year, with a 14-year carry forward provision.
* Real Property Improvement Tax Credit of 2.5% - A nonrefundable credit against income taxes that is allowed on new buildings and structural components of buildings. The credit cannot exceed $125,000 in any one taxable year and has a 14-year carry forward provision.
* New Jobs Income Tax Credit - This credit can be applied for new jobs paying more than $24.04/hour, ranging from $1500/per job up to $3000/per job on a graduated scale. The credit has a 10-year carry forward provision. New jobs paying between $15.50/hour and $24.03/hour are eligible for the standard $1000/per job income tax credit.
* Sales and Use Tax Rebate - A 25% rebate is available on all sales and use tax that the taxpayer or its contractors actually paid for any property constructed, located or installed within the project site during the project period.
* Small Employer Growth Incentive Exemption - Local County Commissioners have the authority to exempt all or a part of the new investment value from property taxes for a determined period of time.


3% INVESTMENT TAX CREDIT Available for qualifying new investments in Idaho. The credit can offset up to 50% of your state income tax liability and may be carried forward up to 14 years.

In lieu of this income tax credit, a two-year exemption from property tax on qualified personal property is available. The exemption is available only if a loss was incurred in the second preceding tax year in which the property is placed in service. The loss must have been computed without regard to any carryover or carry back of net operating losses.

 

UP TO $2,000 NEW EMPLOYEE TRAINING REIMBURSEMENT Available for each new job created by companies qualifying of Idaho's Workforce Development Training Fund program. Up to $3,000 reimbursement per new job created in select rural counties, including Bonner County.

 

$1,000 NEW JOBS INCOME TAX CREDIT Available for any business that adds new employees whose annual earnings average $15.50 per hour or more and who are eligible to receive employer provided coverage under an accident or health plan.

 

$500 NEW JOBS INCOME TAX CREDIT Available for businesses that produce, assemble, fabricate, manufacture, or process natural resource products. May not be combined with the $1,000 new jobs tax credit.

 

5% RESEARCH AND DEVELOPMENT INCOME TAX CREDIT Available for basic research and costs of qualified research that is performed in Idaho. The research and development tax credit is transferable.

 

RESEARCH AND DEVELOPMENT AND PROPERTY TAX EXEMPTIONS
Research & Development: Provides a new exemption from sales and use taxes for property that is used in research and development activities.
Property Tax: Companies with property values in excess of $800 million will be exempt from paying additional property taxes on the amount above that value if they make a yearly capital investment of at least $25 million and employ a minimum of 1,500 full time employees.

 

BROADBAND TELECOM TAX CREDIT Up to $750,000 on Idaho State Income Tax for qualified broadband equipment. Credit is transferable. 100%

 

PRODUCTION SALES TAX EXEMPTION Idaho sales and use tax exemptions are available for equipment and materials used directly in manufacturing, processing, mining, fabrication, or logging operations; and for clean rooms used in semiconductor and semiconductor equipment manufacturing.

 

NET OPERATION LOSS DEDUCTIONS Carry back up to $100,000 loss per tax year for two years. Losses not absorbed in two years may be carried forward for a maximum of 20 years until absorbed.

 

100% PROPERTY TAX EXEMPTION Applies to business inventory and registered motor vehicles, vessels and aircraft.

 

100% GOODS-IN-TRANSIT TAX EXEMPTION Plus an additional exemption from sales and use tax for goods purchased by a carrier in its business and delivered outside of Idaho.

 

100% POLLUTION CONTROL EQUIPMENT TAX EXEMPTION Applicable to sales and use tax for equipment required by state and federal regulation. Required pollution control facilities are exempt from property tax.

 

100% INDUSTRIAL FUELS AND RAW MATERIALS EXEMPTION FROM IDAHO SALES TAX IDAHO PRIME RATE LOAN PROGRAM Offers low interest loans for any purpose to qualifying small businesses. Loans are offered by commercial banks and have up to 85% Small Business Administration guaranty.

 

UP TO $10 MILLION IN INDUSTRIAL REVENUE BONDING Available to finance manufacturing, processing, production, and assembly projects. Tax-free bonds are issued by public corporation with project or business serving as collateral.