Idaho Department of Commerce State Incentives

Tax Reimbursement Incentive

Companies may be eligible for a tax reimbursement of up to 30% of their payroll, sales and income taxes for a negotiated period of up to 15 years. To qualify, companies must create 50+ jobs with wage levels above the county average.

Idaho Business Advantage

To qualify a company must make a minimum $500,000 investment in new facilities and create at least 10 new jobs that pay $40,000 annually plus benefits. Average wage for all other jobs created must be $15.50/hr plus benefits.
Benefits include:
  • Enhances Investment Tax Credit to 3.75% against the corporate income tax for personal property parts of the project (machinery/equipment - computers).
  • Real Property Improvement Tax Credit of 2.5% against corporate income tax - $125,000 per taxable year with 14 year carry forward. Total of $1,750,000 (land/buildings).
  • New Jobs Tax Credit increases the standard $1000/per job corporate income tax credit to a maximum of $3,000/per job, depending on wages paid.
  • Sales and Use Tax Rebate of 25% for any sales and use tax that is paid for the property constructed, located or installed within the project.
  • Small Employer Growth Incentive: local county commissions can grant an exemption on all or part of the new investment value from property taxes for a determined period of time.

Property Tax Exemption

Companies that invest in new manufacturing facilities may receive partial or full property tax exemptions from local county commissioners. To qualify, business must invest a minimum of $3 million.

3% Investment Tax Credit

Credit against Idaho Corporate Income tax for qualifying new investment in tangible personal property (machinery and equipment) in Idaho. It can offset up to 50% of a company's liability and may be carried forward 14 years.

5% Research and Development Tax Credit

Businesses conducting basic and qualified research may earn an income tax credit of 5% that may be carried up to 14 years.