Tuesday, 19 November 2013 10:01

Idaho Business Incentives

3% Investment Tax CreditWhether you are looking to start or expand your business in Idaho, there are quite a number of incentives that will help you reach your return on investment faster.

From basic incentives available to all businesses to enhanced incentives with threshold requirements: Idaho encourages business starts and growth - there is something for every business, large or small!

 

(Additional information on all incentives can be found in the attachments at the bottom of this article.)

Basic Incentives:

3% Investment Tax Credit

3% investment tax credit on all new depreciable, tangible, personal property (machinery and equipment) used in Idaho. Tax payer may elect in lieu of this credit, a two (2) year exemption from all taxes on personal property on the qualified investment.

$100,000 Personal Property Tax Exemption

Businesses are allowed an exemption on the first $100,000 of "personal property," such as equipment and furnishings.  Effective 1/1/2013.

5% Research and Development Tax Credit

5% tax credit on qualified research expenses, as defined by section 41 of the Internal Revenue Code, that were conducted in Idaho.

Property Tax Exemption on Motor Vehicles, Industrial Machinery and Equipment

Standard exemption for all businesses in Idaho.  This includes registered motor vehicles, vessels and aircraft.  In addition the following equipment is exempt for the sales and use tax:

  • Equipment used directly in manufacturing, processing, mining, fabricating or logging operations
  • Aircraft primarily engaged in the transport of passengers or freight for hire
  • Personal property used by broadcasters in producing or broadcasting television or radio programs
  • Motor vehicles and trailers delivered in-state for use out of state

Sales Tax Exemption on Utilities, Industrial Fuels and Raw Materials

Standard exemption for all businesses in Idaho that includes the following materials being exempt from the sales and use tax:

  • Personal property directly used or consumed in manufacturing, processing, mining or producing fabricated property
  • Certain containers for packaging
  • Delivered utilities including water, electricity and natural gas
  • Heating fuels
  • Property used in the production of certain advertising newspapers

Business Inventory

Business inventories are exempt from all taxation within the state.

Goods in Transit

The state's Freeport law provides that goods in transit are exempt from taxation. An additional exemption from the sales and use tax is provided for goods purchased by a carrier in its business.

Production Sales Tax Exemption

Businesses purchasing equipment and rawmaterials used directly in manufacturing, processing, minimng, fabrication, logging, semi-conductor may earn a sales tax exemption if materials, supplies and equipment are used directly in production.

Idaho Advantage: Enhanced Incentives

Threshold Requirements:

  1. Invests $500,000
  2. 10 jobs @ $40,000 w/ benefits
  3. Additional jobs pay $15.50 during project

3.75% Enhanced Investment Tax Credit

3.75% enhanced tax credit on all new, depreciable, tangible, personal property (machinery and equipment) placed in Idaho during project period

25% Sales Tax Rebate on Construction Materials

25% rebate of all sales taxes that the taxpayer or contractors actually paid in regard to new plant and building facilities, properties constructed withing the project period

2.5% Real Property Improvement Tax Credit

2.5% tax credit on investments in new plant and buildings and structural components of buildings that do not qualify for the 3.75% enhanced investment tax credit placed in service during the project period

Enhanced New Job Credit

Employee must work 9 months before they qualify for credit:

$1,500 per job = for jobs that pay $24.04 - $28.85 per hour

$2,000 per job = for jobs that pay $28.86 - $36.06 per hour

$2,500 per job = for jobs that pay $36.07 - $43.27 per hour

$3,000 per job = for jobs that pay $43.28 or more per hour

100% Property Tax Exemption for Up to 5 Years

County Board of Equalization of county in which property that qualifies for the Investment Tax Credit or Real Property Improvement Tax Credit is located can exempt all or part of the value of the property from property tax.

Additional Enhanced Incentives

100% Property Tax Exemption for Up to 5 Years

Businesses that invest $3 million in new manufacturing facilities receive full or partial tax exemptions on new plant/building/personal property. 80% of investment must be made in one location.  County must approve exemption.

Workforce Development Training Funds

$2,000 + cash reimbursement for training (excluding salaries) of full time new employees paid $12 per hour plus benefits for qualifying companies - Idaho Department of Labor

 

 

Energy Conservation Rebates - Commercial

Rebates to Businesses

Commercial and industrial customers have the potential to achieve significant savings through efficient energy use. Earn incentives up to $100,000 per site, per year for qualifying energy-saving improvements. Eligible projects cover lighting, air conditioning systems, plug loads and more. - Avista Utilities, Idaho County Light and Power, Idaho Power

Last modified on Tuesday, 19 November 2013 12:25

Contact Info

for assistance please contact:

Ida-Lew Economic Development

 

Phone: 208.983.8302

Address:

300 W. Main St. Ste 201

Grangeville, ID 83530

info@ida-lew.org

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