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 benefits. 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. Unused tax credits are refundable.
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:
Investment Tax Credit: Businesses that make qualifying new investments in new tangible personal property (machinery and equipment) may earn:
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.
Large Business Property Tax Cap: Businesses that invest at least $1 billion in capital improvements are eligible to receive property tax exemptions on all property valued in excess of $400 million.
$100,000 Personal Property Tax Exemption: Businesses are allowed an exemption on the first $100,000 of “personal property,” such as equipment and furnishings.
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 a property tax exemption on property values in excess of $800 million.
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.
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.
Sales & Use Tax Exemption: Applies to equipment used in manufacturing, processing, and mining, as well as equipment or materials used in R&D.
Capital Investment Property Tax Exemption: Business investing a minimum of $500,000 in new manufacturing facilities may be eligible for a full or partial property tax exemption for as many as 5 years, at the discretion of local county commissioners. 80% of the investment must be in one location. Taxes on land are not exempt.
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.
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.
Infrastructure Grants: Rural communities and cities may be awarded grants of up to $500,000 to help expand infrastructure capacity.
Idaho Electrical Utility Companies Industrial Efficiency Incentives: These are cash incentives for energy-efficient designs. The benefit varies by company.