Business Advantage Tax Credits: Businesses that invest a minimum of $500,000 in new facilities 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), and a 25% Sales Tax Rebate on construction materials.
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 $15.50. Unused credits can be carried forward for up to three 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.
Research & Development Tax Credit: 5% income tax credit can be carried forward for up to 14 years.
GRANTS
Workforce Development Training Fund: Cash grants for workforce training expenses are available to companies for positions that are created in groups of five or more and pay at least $12 an hour (up to $2,000 per new job).
LOW INTEREST FINANCING
The State has various structures to deliver low-interest financing.
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 access of $400 million.
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 property tax exemption on property values in excess of $800 million.
Sales & Use Tax Exemption: Applies to equipment used in manufacturing, processing, and mining.
LOCAL INCENTIVES
Idaho counties have the discretionary authority to offer full or partial property tax exemptions. The Regional Development Alliance has a $20 million fund to assist projects in Eastern Idaho over the next four years.
