Idaho offers a variety of incentives designed to promote business growth, encourage job creation, and enhance the state’s competitive advantage in sectors such as manufacturing, technology, and agriculture.  These incentives support both new and expanding businesses in Idaho, making it an attractive location for companies looking to grow in a favorable economic environment.  Below are some of the key programs available in Idaho.

Idaho Investment Tax Credit (ITC)

Overview

The Idaho ITC provides a tax incentive to businesses that make investments in qualifying property used for manufacturing or processing activities in the state.  This program is designed to stimulate investment in equipment and facilities.

Eligibility

• Businesses must invest in tangible property used for manufacturing, processing, or warehousing activities in Idaho.

• The investment must meet certain thresholds, typically requiring a minimum investment of $50,000 in qualifying property.

Incentive Value

• Businesses can receive a credit of 3% of the cost of the qualifying property.

• The total credit can be carried forward for up to 14 years, allowing businesses to apply it over multiple tax periods.

Application Process

Businesses apply to the Idaho State Tax Commission (ITC) by providing documentation of the investment and the associated tax liabilities.

Idaho Job Creation and Training Grant

Overview

The Idaho Job Creation and Training Grant is aimed at companies that are creating new jobs and require workforce training.  The program provides financial support to businesses that are investing in employee development and job creation.

Eligibility

• Businesses must be located in Idaho and plan to create at least 5 new full-time jobs.

• The jobs must offer wages that meet or exceed the state’s average wage.

Incentive Value

• Grants of up to $3,000 per new job created, depending on the location and type of business.

• The grant can be used to cover costs associated with employee training, such as instructors, equipment, and training materials.

Application Process

Businesses must apply to the Idaho Department of Commerce (IDC), providing a business plan that outlines the number of jobs to be created and the scope of the training program.

Idaho Tax Reimbursement Incentive (TRI)

Overview

The TRI is designed to incentivize businesses to invest in Idaho by offering tax reimbursements for significant capital investments and job creation.  This program is focused on companies that are bringing substantial economic benefits to the state.

Eligibility

• Businesses must make a minimum capital investment of $1 million and create a certain number of jobs, typically at least 10 full-time positions.

• The business must meet specific wage thresholds and agree to stay in Idaho for a minimum number of years.

Incentive Value

• A tax reimbursement of up to 30% of the business’s income tax liability for qualifying capital investments and job creation.

• The incentive can be spread over several years, with the value determined based on the business’s investment and hiring commitments.

Application Process

Businesses must submit an application to IDC, including project details, capital investment plans, and job creation goals.

Idaho Property Tax Exemption for New or Expanding Businesses

Overview

Idaho provides property tax exemptions for businesses that invest in new facilities or expand existing operations in the state.  The goal is to encourage investment in the business community, especially in the manufacturing and processing sectors.

Eligibility

• Businesses must be engaged in manufacturing, agriculture, or other qualifying industries.

• The property must be used for production, warehousing, or processing activities.

Incentive Value

• The exemption covers a percentage of property taxes on new or expanded property.

• The value of the exemption is determined based on the business’s capital investment, and the exemption can apply to both real and personal property.

Application Process

Businesses apply through the local county assessor’s office, providing information about the property and its intended use.

Idaho Research and Development (R&D) Tax Credit

Overview

Idaho offers a R&D Tax Credit to encourage businesses to engage in innovative research activities.  The credit is designed to reduce the cost of R&D and make Idaho an attractive location for high-tech companies.

Eligibility

• Businesses must conduct qualified research activities within Idaho, focusing on the development or improvement of products, processes, or technologies.

• The R&D activities must meet the federal definition of qualified research and be performed in Idaho.

Incentive Value

• The tax credit can be up to 5% of eligible R&D expenses, including wages, supplies, and contract research costs.

• The credit can be carried forward for up to 5 years.

Application Process

To claim the credit, businesses must submit documentation of their R&D activities and expenses to ITC.

Idaho Sales Tax Exemption for Manufacturing Equipment

Overview

The Idaho Sales Tax Exemption for Manufacturing Equipment incentivizes businesses to purchase new equipment by exempting certain manufacturing equipment from sales tax.  This program aims to reduce the upfront cost of investing in new manufacturing technology.

Eligibility

• Businesses must be engaged in manufacturing or processing activities in Idaho.

• The equipment must be used in the production process.

Incentive Value

• Exemption from Idaho’s state sales tax on qualifying manufacturing equipment.

• The exemption applies to both new and used equipment used in the manufacturing process.

Application Process

Businesses must apply to ITC, providing proof of the equipment’s use in manufacturing or processing.

Idaho Clean Energy Tax Credit

Overview

The Idaho Clean Energy Tax Credit encourages businesses to invest in renewable energy and energy-efficient technologies. This program helps reduce the environmental impact of business operations and supports Idaho’s clean energy initiatives.

Eligibility

• Businesses must invest in renewable energy systems, such as solar, wind, or geothermal technologies.

• The energy systems must be installed and operational in Idaho.

Incentive Value

• The credit is equal to 40% of the cost of installing qualifying renewable energy systems.

• The maximum credit available is $10,000 for a single project.

Application Process

Businesses must apply through ITC and submit proof of installation and energy savings.

Idaho Export Assistance Program

Overview

The Idaho Export Assistance Program provides resources and financial support to businesses seeking to expand their markets internationally.  The program aims to help Idaho businesses explore new opportunities and grow their exports.

Eligibility

• Businesses must be based in Idaho and produce goods or services eligible for export.

• The business must have a plan to expand into foreign markets.

Incentive Value

• Support includes export financing, assistance with market research, and help with trade show participation.

• The program also offers financial assistance for travel, trade missions, and export promotion.

Application Process

Businesses apply to IDC to access the resources and services offered through the program.

Conclusion

Idaho offers a range of attractive incentives for businesses, especially in manufacturing, technology, renewable energy, and agriculture.  From tax credits for investments in equipment and R&D to workforce training grants and sales tax exemptions, Idaho provides the support businesses need to grow and thrive.