Biggins Lacy Shapiro & Company, LLC

Idaho Economic Development Incentive Programs

TAX CREDITS

Tax Reimbursement Incentive (TRI): Businesses that create new full-time jobs with total average wages at or above the county average may be eligible for a tax reimbursement of up to 30% of employee withholding, sales and income taxes for a negotiated period of up to 15 years.  Employee withholding taxes are capped at 6.925% of salary for the purposes of calculating incentives benefits.  The average reimbursement benefit is 21% over 10 years.  To qualify, companies must create at least 20 full-time, permanent jobs in rural areas or 50 new jobs in an urban setting.    The program requires an unspecified “meaningful” local match.  Unused tax credits are refundable.

Idaho Business Advantage: Companies that invest at least $500,000 in new facilities and create a minimum of 10 new jobs with an average salary of $40,000, (plus benefits) and pay an average of $15.50 per hour (plus benefits) for any additional jobs over the same period, are eligible to receive:

  • Enhanced Investment Tax Credits of 3.75% of quaIifying personal property up to $750,000, or 62.5% of corporate income tax liability in any single tax year.
  • A new jobs tax credit of $1,500 - $3,000 for each new job paying a minimum of $24.04 per hour.
  • A 2.5% Real Property Improvement Corporate Income Tax Credit worth up to $125,000 in any given year, plus a 25% Sales Tax Rebate on construction materials for new facilities.
  • Up to 100% Property Tax Exemption for as many as 5 years, at the discretion of local county commissioners.

Investment Tax Credit: Businesses that make qualifying new investments in new tangible personal property (machinery and equipment) may earn:

  • A 3% investment tax credit that can be used to offset up to 50% of a company's state income tax liability. The credit can be carried forward up to 14 years; OR
  • A two-year exemption from all personal property taxes on the qualified investment, up to 50% of income tax liability

R&D Tax Credit: Businesses that conduct qualified research may be eligible for a 5% income tax credit that can be carried forward for up to 14 years.

GRANTS

Idaho Opportunity Fund: This is the state’s “deal closing” fund.  Funds are awarded to the municipality (not to a private company) and can be used for public infrastructure improvements to a new or existing facility.  Funds are awarded at the discretion of the Director of Idaho Commerce. 

Workforce Development Training Fund: Cash grants for workforce training expenses are available to businesses that create at least 5 new jobs with wages of at least $12 an hour.  The value of the training fund incentive is up to $3,000 per job.

Infrastructure Grants:  Rural communities and cities may be awarded grants of up to $500,000 to help expand infrastructure capacity.

TAX EXEMPTIONS

Large Business Property Tax Cap: Businesses that invest at least $1 billion in capital improvements are eligible to receive property tax exemptions on all property valued in excess of $400 million.

$100,000 Personal Property Tax Exemption:  Businesses are allowed an exemption on the first $100,000 of “personal property,” such as equipment and furnishings.

Large Employer Property Tax Cap: Businesses that employ at least 1,500 employees within an Idaho county and make a yearly capital investment of $25 million within that county are eligible to receive a property tax exemption on property values in excess of $800 million.

Production Sales Tax Exemption: A 100% sales tax exemption is available to businesses that purchase 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 also are exempt.  50% or more of the business activity must be in the production process.

Utility and Industrial Fuels Sales Tax Exemption: A 100% sales tax exemption on utilities and industrial fuels such as power, water, natural gas and telecommunications.

Sales & Use Tax Exemption: Applies to equipment used in manufacturing, processing, and mining, as well as equipment or materials used in R&D.

Capital Investment Property Tax Exemption: Business investing a minimum of $500,000 in new manufacturing facilities may be eligible for a full or partial property tax exemption for as many as 5 years, at the discretion of local county commissioners.  80% of the investment must be in one location.  Taxes on land are not exempt.

UTILITY INCENTIVES

Idaho Electrical Utility Companies Industrial Efficiency Incentives: These are cash incentives for energy-efficient designs.  The benefit varies by company.

Last updated: June 2018



 
Biggins Lacy Shapiro & Company, LLC
609-924-9775
info@blsstrategies.com