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Idaho considers itself to be a pro-business state. Businesses operating in Idaho enjoy one of the lowest tax burdens in the nation and one of the lowest overall costs of doing business. Additionally, Idaho provides several financial incentives and tax credits to new and existing businesses such as:
3% INVESTMENT TAX CREDIT – available for qualifying new investments in Idaho. The credit can offset up to 50% of your state income tax liability and may be carried forward up to 14 years.
Up TO $2000 NEW EMPLOYEE TRAINING REIMBURSEMENT – available for each new job created by companies qualifying for Idaho’s Workforce Development Training Fund program.
5% RESEARCH AND DEVELOPMENT INCOME TAX CREDIT – available for basic research and costs of qualified research that is performed in Idaho.
100% RESEARCH AND DEVELOPMENT SALES TAX EXEMPTIONS – businesses can claim a 100 percent sales and use tax exemption for any property used in research and development activities.
THE IDAHO CORPORATE ADVANTAGE – large companies that relocate headquarters or make a major administrative expansion in Idaho will benefit from this package. Qualifying companies receive a 6 percent tax credit with no limitation and an enhanced new jobs tax credit starting at $1,000, climbing to $3,000 per position. A 10 percent real property improvement tax credit of up to $500,000 in any one year is also available along with temporary tax abatement for new headquarters and administrative buildings of up to $2 million a year. Companies also receive temporary sales tax abatement for materials used in the construction of new buildings.
THE IDAHO BUSINESS ADVANTAGE – smaller businesses that don’t qualify for the Idaho Corporate Advantage but meet reduced requirements for new investment in headquarters or administrative buildings can receive a 3.75 percent investment tax credit with a credit limitation of 62.5 percent and a new jobs tax credit starting at $1,000, climbing to $3,000 per job. A 2.5 percent real property improvement tax credit of up to $125,000 in any one year is also available along with a temporary 25 percent sales tax abatement for materials used in the construction of new buildings.
NET OPERATION LOSS DEDUCTIONS – carry back up to $100,000 loss per tax year for two years. Losses not absorbed in two years may be carried forward for a maximum of 20 years or until absorbed.
100% PROPERTY TAX EXEMPTION – applies to business inventory and registered motor vehicles, vessels, and aircraft.
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