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Idaho Incentives and Workforce Development Guide

Visit Real Street's website to learn more about this event. The updated Idaho incentives guide is brought to you by Real Street Expo, a new event sponsored by Business Facilities and Today’s Facility Manager magazines.

For a list of Idaho economic development agencies that can help with the site selection process, visit our Online Site Seekers’ Guide.

Idaho Business Advantage :
Businesses that invest a minimum of $500,000 in new facilities and create at least 10 new jobs averaging $40,000 annually, plus benefits, may qualify for a variety of incentives. Qualifying companies receive:
  • an enhanced Investment Tax Credit of 3.75% up to $750,000 OR 62.5% tax liability in any one year
  • a new jobs tax credit starting at $1,500 and climbing to $3,000 per job
  • a 2.5% real property improvement tax credit up to $125,000 in any one year along with a 25% rebate on sales tax paid on construction materials for the new facilities
  • upon request of the company respective county commissioners may also authorize a full or partial property tax exemption

Film Incentives

Sales Tax Rebate on Goods :
Idaho has a rebate of the 6% sales tax on tangible personal property (which excludes consumables such as food) when $200,000 is spent on a wide variety of qualifying expenses.
Lodging Exemption :
Production personnel who are staying 30 days or more in Idaho lodging facilities are totally exempt from both sales and lodging taxes, currently 8%. Local option taxes levied in certain communities would also be exempt.
Idaho’s Natural Incentives :
Built-in incentives include reasonable prices on crew hires, lodging, goods and services. Permits are not required for any cities other than Coeur d’Alene but are required for Idaho’s public lands. Federally managed public lands in Idaho include national monuments and reserves (National Park Service), national forests (US Forest Service) and lands managed by the Bureau of Land Management.
Idaho Prime Rate Loan Program :
Commercial banks offer low-interest loans to qualifying small business with up to 85% Small Business Administration guaranty.
Industrial Revenue Bonds (IDBs) :
Up to $20 Million is available in 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.
3% Investment Tax Credit :
Businesses that make qualifying new investments may earn an income tax credit. This credit can be offset up to 50% of a company’s state income tax liability and may be carried forward up to 14 years.
Qualified Investment Exemption :
This exemption may be applied in lieu of the investment tax credit. A two-year exemption from property tax on qualified personal property is available only if a loss was incurred in the second preceding year in which the property is placed in service. The loss must have been computed without regard to net operating loss carry over or carry back.
$100,000 Property Tax Exemption :
Businesses are allowed an exemption on the first $100,000 of “personal property,” such as equipment and furnishings.
Net Operating Loss Deductions :
A tax provision for losses up to $100,000 per tax year. Losses may be carried back for two years, or, if not absorbed in those two years, the remainder may be carried forward for up to 20 years.
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.
3% Broadband Income Tax Credit :
Businesses that purchase qualified broadband equipment and infrastructure for the benefit of end users in Idaho may earn a 3% income tax credit up to $750,000. This credit is transferable and may be carried forward up to 14 years.
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.
Pollution Control Equipment Sales Tax Exemption :
Businesses purchasing required pollution control equipment are exempt from sales tax on those purchases. Required pollution control facilities are exempt from property tax.
Utility & Industrial Fuels Sales Tax Exemption :
Businesses are exempt from paying sales tax on utilities and industrial fuels. Examples include power, water, natural gas and telephone.
100% Goods-In-Transit Tax Exemption :
The state¹s free port law provides that goods in transit (goods purchased by a carrier in its business and delivered outside the state under a bill of lading for use by the carrier in its business) are exempt from taxation.

Capital Investment 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.
Customized Workforce Training :
Tailored to the specific needs of the company and designed to develop skills for their precise requirements. Financial reimbursement up to $3,000 per employee is available to eligible companies to cover the cost of training new employees or retaining ones facing permanent layoff.

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About The Author

Schwartz joined Group C Media in April 1989 as managing editor of Today's Facility Manager. In September 2012, she transitioned to a new role dedicated to developing online content for Business Facilities and Today's Facility Manager. Schwartz can be reached at [email protected]

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