TAXES
The following tax packages are a summary of Governor's and the Idaho Legislature's new tax package supporting economic development. For more detailed information about Idaho's business taxes, contact the Idaho State Tax Commission at 208-334-7660 or Idaho Commerce & Labor at 208-334-2470 -
http://www.commerce.idaho.gov
THE IDAHO CORPORATE ADVANTAGE -
Large companies that relocate headquarters or invest in a major administrative expansion in Idaho will benefit from this package. Qualifying
companies receive a 6 percent tax credit up to
$5 million in any one year and an enhanced new
jobs tax credit starting at $1,500 and climbing to
$3,000 per job depending on salary levels. Companies also qualify for a rebate of all sales taxes paid on materials used in the construction of new buildings.
THE IDAHO BUSINESS ADVANTAGE -
Available for businesses making a minimum $500,000 investment in new facilities
and creating at least 10 new jobs that pay at least $40,000 annually plus
benefits. Qualifying companies receive an enhanced Investment tax credit of 3.75
percent up to $750,000 in any one year, a new jobs tax credit starting at $1,500
per job and climbing to $3,000 per job, a 2.5 percent real property improvement
tax credit up to $125,000 in any one year along with a 25 percent rebate on
sales tax paid on construction materials for new facilities. Upon request of the
company, the respective county commissioners may also authorize a full or
partial property tax exemption.
3% INVESTMENT TAX CREDIT -
This credit is available for qualifying new investments in tangible personal
property in Idaho. It can offset up to 50 percent 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 invest 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 tax year in which the property is
place in service.
3% BROADBAND TELECOM TAX CREDIT -
An additional 3 percent investment tax credit of up to $750,000 in any one year
on Idaho state income tax is allowed for qualified broadband equipment and
infrastructure used primarily to provide services to public subscribers in
Idaho. The credit is transferable and may be carried forward up to 14 years.
NEW EMPLOYEE TRAINING REIMBURSEMENT -
Training costs are reimbursed up to $2,000 for each new job paying $12 an hour
or more, plus benefits, created by companies qualifying for Idaho’s Workforce
Development Training Fund program. Up to $3,000 reimbursement per new job is
allowed in select rural counties.
$1,000 NEW JOBS INCOME TAX CREDIT -
This credit is available to any business adding new employees who work at least
20 hours at $15.50 an hour or more and who are eligible to receive
employer-provided coverage under an accident or health plan. The credit may be
carried forward up to three years.
$500 NEW JOBS INCOME TAX CREDIT -
Available for businesses that produce, assemble, fabricate, manufacture or
process natural resource products. This credit may not be combined with the
$1,000 new jobs tax credit.
5% RESEARCH AND DEVELOPMENT INCOME TAX CREDIT
- The cost of basic and qualified research performed in Idaho qualifies for this
credit, which may be carried forward up to 14 years.
100% PRODUCTION SALES TAX EXEMPTION -
Idaho sales and use tax exemptions are available for equipment and raw materials
used directly in manufacturing, processing, mining, fabrication or logging
operations; clean rooms used in semiconductor and semiconductor equipment
manufacturing; and any equipment or material used in research and development
activities.
NET OPERATION LOSS DEDUCTIONS -
Losses up to $100,000 per tax year can be carried back for two years. Losses not
absorbed in two years may be carried forward for up to 20 years.
100% PROPERTY TAX EXEMPTION -
Business inventory and registered motor vehicles, vessels, and aircraft are
exempt from property tax. 100% GOODS-IN-TRANSIT TAX EXEMPTION -
Goods temporarily stored in Idaho for shipment
elsewhere is exempt from property tax, and goods
purchased by a carrier in its business and delivered
outside of Idaho are exempt from sales tax.
100% POLLUTION CONTROL EQUIPMENT TAX EXEMPTION -
No sales or use tax is collected on equipment
required by state and federal regulation.
Required pollution control facilities are exempt
from property tax.
100% INDUSTRIAL FUELS AND RAW MATERIALS EXEMPTION
FROM SALES TAX
100% Utility
Sales Tax Exemption - The cost of utility usage, such as power, water,
natural gas and telephone service, is exempt from sales tax in Idaho.
IDAHO PRIME RATE LOAN PROGRAM -
Offers low interest loans for any purpose to qualifying small businesses by commercial banks and have up to 85% Small Business Administration guaranty.
UP TO $20 MILLION IN INDUSTRIAL REVENUE BONDING -
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.
TAX CAP ON PROPERTY VALUES EXCEEDING $800 MILLION -
Companies with property in a single county valued over $800 million are exempt from paying property taxes on the excess value if they make a yearly
capital investment of at least $25 million in the county and employ a minimum of 1,500 full-time employees in the county. |
$2728