TAX CREDITS

Tax Reimbursement Incentive (TRI): Companies who bring new value-added jobs to the state of Idaho may be eligible for a tax reimbursement of up to 30% of their payroll, sales and income taxes for a negotiated period of up to 15 years. To qualify, companies must create 50+ jobs in an urban setting with average wages for project at above county wage, must have community match and be a competitive project.

Business Advantage Tax Credits: Companies that invest at least $500,000 in a business facility and create 10 new jobs with an average salary of $40,000 are eligible to receive corporate income tax credits. Under this program, companies may also be eligible for an Enhanced Investment Tax Credit of 3.75%, a New Jobs Tax Credit of up to $3,000 per job, a 2.5% Real Property Tax Improvement Credit (up to $125,000 in any given year),  a 25% Sales Tax Rebate on construction materials, and up to a 100% Property Tax Exemption for 5 years.

New Jobs Income Tax Credits: Projects that fail to meet the capital investment and wage requirements of the Business Advantage program are eligible to receive a $1,000 tax credit for each new job added with hourly wages of at least $15.50. Unused credits can be carried forward for up to 3 years. A separate $500 per job credit is offered to businesses that create new jobs in manufacturing or natural resources.  This credit cannot be combined with the $1,000 tax credit.

Investment Tax Credit: Businesses that make qualifying new investments may earn a 3% income 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.

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:  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 this year to help “close” new projects.

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 Improvement Grants:  Grants of up to $350,000 are available to help communities expand their 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 exemption 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: Businesses that purchase equipment and raw materials used directly in manufacturing, processing, mining, fabrication, logging, or semiconductor are eligible for a sales tax exemption

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

 

Last updated: November 2016


 
BIGGINS LACY SHAPIRO & COMPANY
PRINCETON
47 Hulfish Street, Suite 320
Princeton, NJ 08542
(609) 924-9775
NEW YORK
215 Park Ave South
New York, NY 10003
(646) 652-7555
CHICAGO
30 S. Wacker, Suite 2200
Chicago, IL 60606
(312) 924-2490