Incentives for Relocating or Expanding
Tax Reimbursement Incentive
This new performance based economic development tool features a tax credit of up to 30% for up to 15 years on new state revenues (corporate, sales and withholding taxes paid to the state) that would be available to Idaho companies seeking expansion or new companies seeking relocation in the State of Idaho.
Requirements and considerations:
» Number of jobs (50+ in an urban setting)
» Wages compared to county average
» Economic impact
» Capital investment
» Economic based jobs
» Community match
Just some of the approved TRI Projects...
| AGC AeroComposites | Kochava |
| Albertsons | Novolex |
| AMFEC | Orgill, Inc |
| Amy's Kitchen | Paylocity |
| Aspen Skiing Company | Project Bentley* |
| ATC Manufacturing Inc | Project Circuit* |
| Athlos Academics | Project Future* |
| Biomedical Innovations | Project Lincoln* |
| Diversified Fluid Solutions, LLC | Project Pipe* |
| Dow Chemical Company | Project Steel 2* |
| Fabri-Kal | Project Y Klein* |
| Gayle Manufacturing Company | Quest Aircraft |
| Glanbia, Plc | SkyWest Airlines, Inc. |
| Heartland RV | User Interface User Experience (UilUx) |
| Hearthside Foods | Vie Active |
| Idaho College of Osteopathic Medicine | |
Idaho Business Advantage
(for qualifying companies)» Increases the Investment Tax Credit to 3.75%
» 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
Research Income Tax Credit
Businesses conducting basic and qualified research may earn an income tax credit of 5% that may be carried forward up to 14 years.
Property Tax Incentives
Property Tax Exemption
Businesses that invest in new manufacturing facilities may receive partial or full property tax exemptions from local county commissioners. To qualify, businesses need to invest a minimum of $3 million.Large Business Property Tax Cap
Businesses that invest a minimum of $1 billion in capital improvements will receive a property tax exemption on all property in excess of $400 million in value per year.
Large Employer Property Tax Cap
Businesses that employ at least 1,500 people within an Idaho county may receive a property tax exemption on property values in excess of $800 million. To qualify, the business must make a yearly capital investment of at least $25 million within that county.
100% Property Tax Exemption
Business inventory and registered motor vehicles, vessels and aircraft are exempt from property tax.
Inventory Tax
Idaho does not have an inventory tax.
Income Tax Incentives
3% Investment Tax Credit
Businesses that make qualifying new investments1 may earn an income tax credit. This credit can offset up to 50 percent of a company's state income tax liability and may be carried forward up to 14 years. Note: Qualifying property is new or used depreciable property. Idaho adopted the definition of qualifying property found in Internal Revenue Code (IRC) Sections 46(c) and 48 in effect prior to 1986. The depreciable life must be three years or more. Property not used in Idaho and vehicles under 8,000 pounds gross weight do not qualify.
5% Research Income Tax Credit
Businesses conducting basic and qualified research may earn an income tax credit of 5% that may be carried forward up to 14 years.
Corporate Income Tax
Computed at 7.6% of the Idaho taxable income of a corporation. Corporations that are taxable in Idaho and another state or country or are part of a unitary group of corporations, use a 3 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 4 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 Incentives
Production Sales Tax Exemption
Businesses purchasing equipment and raw materials used directly in manufacturing, processing, mining, fabrication or logging operations; for clean rooms used in semiconductor and semiconductor equipment manufacturing; for any equipment or material used in research and development activities; and processing materials, substances or commodities for use as fuel for the production of energy may earn a sales tax exemption.
We do not tax services including telecommunication services, and utilities such as; water, gas, electricity, or natural gas. In our region, we do not have any local option sales tax.
Up to $20 Million in Industrial Revenue Bonding
Tax-free bonds to finance manufacturing, processing, production and assembly projects are issued by a public corporation with the project or business serving as collateral. Taxable industrial revenue bonds also are available up to and exceeding $20 million
*Information provided by the Idaho Department of Commerce http://commerce.idaho.gov/business/