| Eastern Idaho has some of the lowest overall costs of doing business in the country, and is near the top in virtually all indicators of business and economic vitality. Eastern Idaho has a variety of incentive programs designed to assist business start-up, expansion, productivity and profitability. Below are some specific programs. For more information, contact Grow Idaho Falls staff or visit the Idaho Department of Commerce. |
Download: Idaho Department of Commerce |
Business assistance and incentives
State of Idaho Work Force Training Funds. Up to $2,000 per new employee for qualified training costs; requires a 25% employer match.
State of Idaho Community Development Block Grant Program (ICDBG) grants funds up to $500,000 for public infrastructure improvements, such as water and sewer.
East-Central Idaho Development (ECIDC) long-term, fixed-asset financing through various loan programs and revolving loan funds. ECIDC is a division of East-Central Idaho Planning and Development Association (ECIPDA). Current programs include the SBA 504 Loan Program, and revolving loan funds from the Economic Development Administration, USDA Rural Development, and the Idaho Community Development Block Grant programs.
Regional Development Alliance (RDA) funding for equipment and working capital in the form of low interest loans, equity investments, and occasionally grants. The Economic Development Council can coordinate an application on behalf of a client. A fund of nearly $20 million is available to support company expansion and relocation in eastern Idaho over the next four years.
Tax Increment Financing (TIF) is available in certain districts in Idaho Falls. The program consists of a bonding authority that can finance new construction and infrastructure. The bonds are retired by repayment from property tax collections on the new construction.
General Tax Incentives
Idaho offers significant incentives to businesses willing to invest in building a company here. Businesses that invest a minimum of $500,000 in new facilities and create at least 10 new jobs with wages 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% of 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.
Property Tax Incentives
Rural Property Tax Exemption. Partial or full property tax exemptions may be available from local county commissioners for businesses that meet qualifications.
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 if they qualify.
100% Property Tax Exemption. Business inventory and registered motor vehicles, vessels, and aircraft are exempt from property tax.
Income Tax Incentives
Up to $2,000 new employee training reimbursement. Businesses may be reimbursed up to $2,000 for training costs for each new job in select rural counties, for new jobs that pay at least $12/hour.
New Jobs Income Tax Credit.
$1,000 Tax Credit. Businesses may earn a $1,000 tax credit for each additional employee added that 1) works 20 hours/wk minimum 2) makes at least $15.50/hour 3) is 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.
3% Investment Tax Credit. Businesses that make qualifying new investments may earn an income tax credit, which can offset up to 50% of a company’s state income tax liability and may be carried forward up to 14 years. A Qualified Investment Exemption may be applied in lieu of the investment tax credit.
Net Operating Loss Deductions. A net operating loss income tax provision for losses up to $100,000 per tax year is available.
5% Research and Development Income Tax Credit. Businesses conducting basic and qualified research may earn an income tax credit of 5% that may be carried forward for up to 14 years.
3% Broadband Telecom 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.
Sales Tax Incentives
Production Sales Tax Exemption. This exemption is available for qualifying companies 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 energy production.
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 and 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 state’s 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.