We believe that Idaho is a compelling place to do business in. The State has a variety of incentive programs designed to assist businesses in start-up, expansion, and productivity activities. Administered by the State Department of Commerce, the following programs may be able to help your business.
IDAHO BUSINESS ADVANTAGE
Businesses that invest at least $500,000 in new facilities and create at least 10 new jobs paying $40,000 annually plus benefits, with additional jobs paying an average of $15.50 per hour during project period, may qualify for the following:
- An enhanced investment tax credit of 3.75% up to $750,000 or 62.5% of corporate income tax liability in any one year.
- A new jobs tax credit from $1,500-$3,000 for new jobs paying $24.04 per hour or more.
- A 2.5% real property improvement corporate income tax credit up to $125,000 in any one year along with a 25% rebate on sales tax paid on construction materials for the new facilities.
- Upon request of the business, the local county commissioners may also authorize a partial or full property tax exemption for up to 5 years.
3% INVESTMENT TAX CREDIT
Credit against Idaho Corporate Income tax for qualifying new investment in tangible personal property (machinery & equipment) in Idaho. It can offset up to 50% of a company’s liability and may be carried forward 14 years.
TAX REIMBURSEMENT INCENTIVE (TRI)
If your business is adding or bringing high paying jobs to Idaho, you may be eligible for the Idaho Tax Reimbursement Incentive. This post-performance incentive awards a maximum credit of 30% on income, payroll withholdings, and sales taxes for up to 15 years.
CAPITAL INVESTMENT PROPERTY TAX EXEMPTION
Businesses that invest at least $3 million in new manufacturing facilities may receive a partial or full property tax exemption for up to 5 years from local county commissioners.
100% SALES TAX EXEMPTION
Production Sales Tax Exemption – Tax exemption on equipment and raw materials used directly in manufacturing, processing, mining, fabrication or logging operations; for clean rooms and semiconductor equipment manufacturing; and for equipment or material used in research activities.
Processing materials, substances, or commodities for use as fuel for the production of energy are also exempt.
UTILITY AND INDUSTRIAL FUELS SALES TAX EXEMPTION
Tax exemption on utilities and industrial fuels such as power, water, natural gas and telephone.
CUSTOMIZED RECRUITING & WORKFORCE TRAINING SERVICES
Idaho Department of Labor offers employers recruitment services that include online jobs posting, applicant screening, hiring fairs, online skills testing of applicants and temporary office space.
Additionally, they offers the Workforce Development Training Fund (WDTF) which can reimburse businesses for employee training costs.
WORKFORCE DEVELOPMENT TRAINING FUND (WDTF)
Up to $3,000/per employee, paid directly to company. Jobs must pay $12/hr or more with benefits, and the company must produce a product or service that is mainly marketed outside the region where the business is located.
IDAHO OPPORTUNITY FUND
A grant program which allows the Director of Idaho Department of Commerce to direct funds to projects for infrastructure needs within the community. This $3 million fund will be used within the year to help “close” new projects.
IDAHO POWER NEW CONSTRUCTION AND MAJOR RENOVATIONS PROGRAM
Cash incentives designed to help cover a portion of the costs of designing and building energy-efficient features into a commercial or industrial construction project. New construction, major renovations, additions or expansions and change-of-space type are all eligible. Idaho Power is also committed to providing customers choices to support renewable energy projects and meet sustainability and renewable energy goals. In fact, Idaho Power set a goal to provide 100% clean energy by 2045.