Effective July 1, 2014, The Boise Metro began the start of a new era with the Tax Reimbursement Incentive.
In addition to our great quality of life and low cost of doing business, the State of Idaho, local counties and cities can offer a variety of incentives for qualified companies that are considering relocating or expanding in the Boise Valley.
The Boise Valley Economic Partnership stands ready to help your business. We can create a custom package of information for your company with a personalized incentive review. Let us make it easy for you. Call Clark Krause today at (208) 863-9675 or email firstname.lastname@example.org.
For more information about business incentives within the state of Idaho, as well as related tax information, click on the appropriate tab below. (Please note that the information presented below is only an overview, and does not include all qualifications and conditions.
Tax Reimbursement Incentive (Available July 1, 2014)
- New in 2014: Bring new high-wage jobs to Idaho and your company could be eligible to receive up to a 30% refund on sales, payroll & corporate income taxes for up to 15 years.
- Companies must provide wages above the county average, and create at least 50 new jobs in an urban area, or 20 in a rural area.
- SkyWest Airlines was the first company in Idaho to take advantage of the new incentive. They recieved a TRI credit of 25% for a term of 12 years in addition to a robust package from the City of Boise in infrastructure build out and financing. The company will also benefit from the Idaho Department of Labor's Workforce Development Training Fund program. Click here to read the press release.
- Contact us to learn more and we can calculate an estimate for you.
Idaho Business Advantage (for qualifying companies)
- Increases the Investment Tax Credit to 3.75% against the corporate income tax
- Real Property Improvement Tax Credit of 2.5% against corporate income tax
- New Jobs Tax credit increases the corporate income tax credit per job depending on wages paid
- Sales and Use Tax Rebate of 25%
- Small Employer Growth Incentive
Workforce Development Training Fund
- Minimum $2,000 per new job created, paid directly to the company
Idaho Opportunity Fund
- New 2013 legislation established new 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.
3% Investment Tax Credit
- A credit against Idaho corporate income tax for qualifying new investment in tangible personal property
Idaho Power Industrial Efficiency Incentive
- Cash incentives for energy efficient designs
- Sales and Use tax in Idaho is 6%, applicable to items purchased or consumed in Idaho. Certain exemptions apply.
- Idaho does not tax services including telecommunication services, and utilities such as water, gas, electricity, or natural gas; additionally, in our region we do not have any local option sales tax.
- Property Tax: personal (machinery/equipment) and real (land/buildings) – based on market value. Rates in 2013:
Ada County – Average range: 1.1% -1.8%
Canyon County – Average rate: 1.5% - 2.5%
Elmore County – Average rate: 1.8%
- Idaho does not have an inventory tax
Corporate Income Tax is computed at 7.4% of the Idaho taxable income. Corporations that are taxable in Idaho and another state or country or are part of a unitary group of corporations, use a three-factor formula to ascertain how much of the business is conducted in Idaho.
The apportionment formula is made up of a property factor, a payroll factor, and a sales factor. These three factors, with the sales factor being double weighted for all taxpayers (except for electrical and telephone companies) are totaled and divided by four to compute the Idaho apportionment factor.
The Idaho apportionment factor is then applied to the business income of the corporation to compute income assigned to Idaho. Non-business income allocable to Idaho is added to the income apportioned to Idaho to arrive at Idaho taxable income.
- Sales Tax Rate: 6%
- Corporate Income Tax: 7.4%
- State Unemployment Insurance (SUI) Rate: 1.91%
- Personal Income Tax Rate: Idaho income tax is based on a bracketed system with different rates applicable to individuals with different income levels (rates are between 1.6% - 7.8%)
- Property Tax Exemption: First $100,000 of personal property is exempt from taxation
- #2 Best State for Property Tax Rates, 2013 Tax Foundation Study
- Minimum Wage Rate (Per Hour): $7.25
- Union Membership in Idaho (Right to Work State): is 4.7% (National average is 11.3%)