THE IDAHO BUSINESS ADVANTAGE

3% INVESTMENT TAX CREDIT

Businesses that qualifying new investments may earn an income tax credit. This credit can offset up to 50% of a company's state income tax liability and may be carried forward up to 14 years.

In lieu of this income tax credit, a two-year exemption from property tax on qualified personal property is available. The exemption is available only if a loss was incurred in the second preceding tax year in which the property is placed in service. The loss must have been computed without regard to any carryover or carry back of net operating losses.

UP TO $2,000 NEW EMPLOYEE TRAINING REIMBURSEMENT

Businesses may be reimbursed up to $2,000 for training costs for each new job in selected rural counties. Each new job must pay at least $12 per hour and include benefits created by companies qualifying for Idaho's Workforce Development Training Fund program.

$1,000 NEW JOBS INCOME TAX CREDIT 

Businesses may earn a $1,000 tax credit for each additional employee added that works a minimum of 20 hours per week making at least $15.50 per hour and who is 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. May not be combined with the $1,000 new jobs tax credit.

5% RESEARCH AND DEVELOPMENT INCOME TAX CREDIT

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

RESEARCH AND DEVELOPMENT AND PROPERTY TAX EXEMPTIONS:

Provides a new exemption from sales and use taxes for property that is used in research and development activities.

PROPERTY TAX:

Large businesses that invest a minimum of $1 billion in capital improvements will receive a property tax exemption on all property property in excess of $400 million in value per year. 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. to qualify, the business must make a yearly capital investment of at least $25 million within that county.

3% BROADBAND TELECOM 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. This credit is transferable and may be carried forward up to 14 years.

100% PRODUCTION SALES TAX EXEMPTION:

Businesses 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 the production of energy may earn a sales tax exemption.

NET OPERATION LOSS DEDUCTIONS:

Idaho offers a net operating loss income tax provision for losses up to $100,000 per tax year. Losses may be carried back for two years, or if not absorbed in those two years, the remainder 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:

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.

100% POLLUTION CONTROL EQUIPMENT TAX EXEMPTION
Applicable to sales and use tax for equipment required by state and federal regulation. Required pollution control facilities are exempt from property tax.

UTILITY & INDUSTRIAL FUELS SALES TAX EXEMPTION FROM IDAHO SALES TAX:

Businesses are exempt from paying sales tax on utilities and industrial fuels. Examples include power, water, natural gas and telephone.

IDAHO PRIME RATE LOAN PROGRAM:
Offers low interest loans for any purpose to qualifying small businesses. Loans are offered by commercial banks and have up to 85% Small Business Administration guaranty.

UP TO $20 MILLION IN INDUSTRIAL REVENUE BONDING:
Available to finance manufacturing, processing, production, and assembly projects. Tax-free bonds are issued by public corporation with project or business serving as collateral.