Idaho Business Incentive Packages
Idaho is known for its pro-business climate and low cost of doing business. The state offers a flexible worker training program, a number of tax credits and exemptions and grant programs for some communities. What’s more, the state offers incentive packages for businesses wanting to invest in corporate or regional headquarters in Boise Valley.
The Idaho Business Advantage
The Idaho Business Advantage gives special incentives to any business making a minimum $500,000 investment in new plant and building facilities in Idaho and hires at least 10 new qualified employees.
Idaho Business Advantage incentives include:
An enhanced 3.75% investment tax credit on new equipment up to $750,000 in any one year or 62.5% of the taxpayers corporate income tax with a 14-year carry forward provision.
A 2.5% real property improvement tax credit up to $125,000 in any tax year with a 14-year carry forward provision.
A 25% rebate on sales and use tax paid on construction materials used in building the new facility.
An enhanced new jobs tax credit ranging from $1,500 to $3,000 per job for every job paying at least $32,240 to more than $90,000 a year. The credit has a 10-year carry forward provision.
The package also includes a sales tax exemption on equipment used for research and development and alternative energy production of at least 25 kilowatts, and caps property valuation for tax purposes at $800 million for business operations with even higher assessed values and at least 1,500 workers in the state if they make a capital investment of at least $25 million during the tax year.
The Idaho Corporate Advantage
Under the Idaho Corporate Advantage incentive package, corporations relocating their headquarters or major administrative centers to Idaho - or committing to a major expansion of operations already in Idaho - qualify for tax breaks if they make a minimum $50 million investment in administrative facilities and bring in at least 500 jobs averaging $60,000 each.
Incentives include:
A 6% investment tax credit with no credit limitation.
A 10% real property improvement tax credit of up to $500,000 in any one year.
A temporary tax abatement for new headquarters and administrative buildings of up to $2 million in any year.
An enhanced jobs tax credit starting at $1,500 per job and climbing to $3,000 per job, depending on salary levels.
In addition, the company is exempt from state sales tax on materials for construction of its facility, and all property taxes up to $2 million a year are rebated on the new facility or on the new facility located at the site where 80% or more of the improvements were made. The property tax rebate is available for tax years 2005 through 2012.
Tax Credits and Exemptions
Boise Valley businesses enjoy a variety of tax credits and exemptions offered by the State of Idaho. Key among them are a 3% investment tax credit, $1,000 new jobs income tax credit, 5% research and development income tax credit, several property tax exemptions, sales and use tax exemptions, and a tax cap on property values exceeding $800 million.
Grants
Companies that expand or relocate to designated communities in the Boise Valley have access to several federal grants and other state-sponsored programs earmarked to help local businesses with infrastructure improvements and business expansion. Among these are state community development block grants, EDA grants, tax increment financing, and up to $20 million in IRB (industrial revenue bonding).