SPOTLIGHT PROGRAMS

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 benefit. 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 and that the incentive is a critical factor in their location decision.  Unused tax credits are refundable.

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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 qualifying 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.

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TAX CREDITS

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 first $250,000 of personal property.

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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.

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TAX EXEMPTIONS

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

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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.

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Data Center Tax Sales Tax Exemption: New qualifying data centers locating in Idaho will be eligible for a state sales tax exemption on server equipment and building construction materials. To qualify for the tax exemption, companies must (1) create and maintain at least 30 new jobs in Idaho within the first two years, paying an average wage that is at or above the county average, and (2) make a capital investment of at least $250,000,000 within 5 years after construction begins.

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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.

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

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DIRECT FINANCIAL ASSISTANCE

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.

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

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JOB TRAINING

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.

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LOCAL INCENTIVES

Property Tax Exemption: Property tax exemptions are a discretionary incentive offered by county commissioners. Idaho does not collect property taxes.

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Last Updated: May 2023