Together with some of the lowest overall costs of doing business in the country, Idaho has a variety of incentive programs designed to assist business productivity. From financial incentives to business tax credits to worker training programs, Idaho’s incentives are designed to enhance overall profitability and make doing business from Idaho very attractive and easy. Plus, Idaho is near the top in virtually all indicators of business and economic vitality.
But don’t just take our word for it. Take a few minutes to learn more about our incentives. Compare the costs of doing business in Idaho with other surrounding states, and peruse our database of labor market and demographic data. Or, contact us for a confidential evaluation.
We believe you’ll be pleasantly surprised by what you learn.
The Idaho Business Advantage
This program applies to businesses that invest a minimum of $500,000 in new facilities and create at least 10 new jobs averaging $40,000 annually, plus benefits. This qualifies companies for a variety of incentives, including:
- 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 up t0 $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
Hire One Tax Credit
The Idaho Hire One Tax Credit is a sliding-scale income tax credit for employers. The credit is based on an employer’s unemployment insurance tax rating and the county unemployment rate where the new job is located. Employers qualify for the credit when they pay $12 an hour or more plus benefits for jobs created in counties with unemployment rate of at least 10%, and $15 an hour or more plus benefits for jobs created in counties with lower unemployment rates. Positive-rated employers are eligible for a 6% credit, standard-rated employers would receive 4%, and negative rated employers would receive 2%.
Income Tax Credits
Businesses that make qualifying new investments may earn an income tax credit that can offset up to 50% of a company’s state income tax liability and may be carried forward up to 14 years. In addition, businesses may earn a $1,000 tax credit for each additional employee added that work at least 20 hours a week, make at least $15.50 an hour and are eligible to receive employer-provided insurance coverage. Alternatively, businesses may earn a $500 tax credit for adding new jobs in the production, assembly, fabrication, manufacturing or processing of natural resources. No minimum wage requirements apply to the $500 tax credit.