Idaho's Incredible Business Incentives
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 start-up, business expansion, and 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. 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 will be pleasantly surprised by what you learn.
The 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
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
New Jobs Income Tax Credit
$1,000 Tax Credit
Businesses may earn a $1,000 tax credit for each additional employee added. New employees must work a minimum of 20 hours per week, make at least $15.50 an hour, and be eligible to receive employer-provided coverage under an accident or health plan. The credit may be carried forward up to three years
$500 Tax Credit
Businesses may earn a $500 tax credit for adding new jobs in the production, assembly, fabrication, manufacturing or processing of natural resources. This credit cannot be combined with the $1,000 new jobs credit.