Incentives & Taxes
Along with the low cost of doing business, the unsurpassed quality of life, and the welcoming environment in Eagle, Idaho, our companies benefit from a variety of tax incentives, property tax exemptions, workforce training grants, and other programs.
Idaho's incentives are designed to enhance the overall bottom line and make doing business in Idaho the perfect choice. Companies may also qualify for consideration of local incentives based on meeting certain criteria.
Contact us to assist you in how to best navigate and leverage Idaho's tax incentives and programs. We can create a custom package of information for your company that contains personalized data on properties, utilities, infrastructure, tax and rate information, along with qualifying incentives. Call Robin Collins today at (208) 489-8755 or email firstname.lastname@example.org.
LOWEST PER CAPITA TAX BURDEN OF ANY STATE!
Businesses in Idaho know they can count on a stable tax environment. Below is an overview of our state taxes. If you'd like more in-depth information about our tax structure, please contact Robin Collins at (208) 489-8755.
Property Tax (average 1.5%)
Ada County Average: 1.53%
Canyon County Average: 1.29 - 2.09%
Elmore County Average: 1.94%
Sales and Use Tax - 6%
We DO NOT tax services including telecommunication services and utilities, such as; water, gas, electricity, or natural gas.
Local Option Sales Tax
In our region, we DO NOT have a local option sales tax.
Corporate Income Tax - 6.925%
Personal Income Tax - 6.925% (top bracket)
Inventory Tax - NONE
Tax Reimbursement Incentive (TRI). This performance based economic development tool features a tax credit of up to 30% for up to 15 years on new state revenues (corporate, sales and withholding taxes paid to the state) that would be available to Idaho companies seeking expansion or new companies looking to locate in Idaho.
Idaho Business Advantage. If your business invests at least $500,000 in new facilities and creates at least 10 new jobs averaging $40,000 a year with benefits, you may qualify for a wide package of incentives, including tax credits, sales tax rebates, and property tax exemptions.
Workforce Development Training Fund. Up to $3,000 reimbursed per employee for training of employees for new and expanding businesses.
Idaho Opportunity Fund: Grant program which allows the Director of Idaho Department of Commerce to direct funds to projects for infrastructure needs within the community.
Investment Tax Credit. A 3% credit against Idaho Corporate Income tax for qualifying new investment in depreciable, tangible personal property (machinery and equipment) used in Idaho.
Research Income Tax Credit. Businesses conducting basic and qualified research may earn an income tax credit of 5% that may be carried forward for up to 14 years.
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.
Industrial Revenue Bonds. 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. Taxable industrial revenue bonds also are available up to and exceeding $20 million.
Property Tax Exemption. Businesses that invest at least $500,000 in new or existing non-retail, commercial or industrial facilities may qualify for a full or partial property tax exemption for up to five years.
Idaho Opportunity Fund. The Idaho Opportunity Fund (IOF) services as a “deal closing fund” to strengthen Idaho’s competitive ability to support expansion of existing Idaho businesses and recruit new companies to the state, ultimately creating new jobs and economic growth in Idaho.
Local Incentives may include, but not be limited to:
~Waiver of building permit and/or plan review fees (portion or all)
~Waiver of planning and zoning fees (portion or all)
~Expedited permitting processes
~Single point of contact for interaction with all government agencies
~Creative "ouf of the box" customized incentives for your needs that reflect your core values.
~Urban Renewal - Tax increment financing and reimbursement agreements for infrastructure upgrades and/or improvements
~Foreign Trade Zone - Eliminate, postpone or reduce paying import taxes on foreign materials.
Idaho Global Entrepreneurial Mission. The IGEM – Idaho Global Entrepreneurial Mission grant program funds commercialization research where university researchers and business experts partner together to bring viable technologies to market.
State Trade Expansion Program. The Idaho State Trade Expansion (STEP) Program is a grant that makes funds available to qualifying Idaho companies for international marketing campaigns to export their products.
Community Development Block Grants. The Community Development Block Grant program enhances local infrastructure to create a better business environment for existing and potential businesses. Eligible entities include counties, cities with populations under 50,000, and service providers such as water and sewer districts and senior centers.
OTHER PROGRAMS/FINANCING ASSISTANCE
Capital Matrix. Capital Matrix is a private, non-profit corporation licensed and regulated by the U.S. Small Business Administration to administer the SBA 504 loan program.
Collateral Support Program. Idaho Housing and Finance Association is the administrator of the Collateral Support Program. Small businesses statewide who are interested in this program will work with their local banking and lending institution to qualify. The program places pledged cash deposits with lending institutions to enhance the collateral of qualified small business borrowers who would not otherwise be able to obtain financing. The deposits are available to cover loan losses, in the event of a default, or are returned to be recycled for the benefit of another qualified borrower.
Small Business Administration Loans. Start or expand your business with loans guaranteed by the Small Business Administration. Use Lender Match to find lenders that offer loans for your business.
Investment Capital. Find an investor for your business through a Small Business Investment Company (SBIC) licensed by the Small Business Administration (SBA).
STTR. The Small Business Innovation Research (SBIR) program is a highly competitive program that encourages domestic small businesses to engage in Federal Research/Research and Development (R/R&D) that has the potential for commercialization.
STTR. Small Business Technology Transfer (STTR) is another program that expands funding opportunities in the federal innovation research and development (R&D) arena.
FAST. Federal and State Technology Partnership (FAST) Program is a competitive grants program designed to strengthen the technological competitiveness of small businesses
Federal Historic Tax Credits. An important federal program for encouraging private investment in historic buildings involves the tax incentives available for some owners and developers. For certain qualifying projects, the owner may claim 20% of their rehabilitation project costs as investment tax credits that can be applied to their federal income tax. Click Here for the Historic Tax Credit Handout.
Industrial Revenue Bonds. Up to $20 million is available in tax-free bonds to finance your manufacturing, processing, production, and assembly projects. Learn More.
Low Income Housing Tax Credits (LIHTC). The Low-Income Housing Tax Credit, established under the 1986 Tax Reform Act, provides an incentive to developers for affordable rental housing. The credit provides a dollar-for-dollar federal tax liability reduction for owners of newly constructed or substantially rehabilitated rental housing. Section 42 of the Internal Revenue Code and related regulations govern the Housing Tax Credit and establish compliance requirements, including qualified tenants income levels and maximum program rental rates. For more information, click here.
MoFi Business Loans. They business loans that range from $1,000 to $2,000,000, and are flexible around collateral and equity. Loans may be used for a variety of business needs, including startups. Borrowers also receive free, one-on-one consulting services throughout the life of the loan to help build money, marketing, and management skills. These services can include free bookkeeping, employee management assistance, marketing grants, PR support, and business management consulting. For more information about MoFi business lending, please call Betsy Beauvais at 1-844-728-9234 or by email at email@example.com.
New Market Tax Credits. The New Markets Tax Credit (NMTC) program provides capital for businesses, developers, and non-profits to help make their projects a reality. A qualifying project can receive 18–23% of the financing it needs in the form of a very low interest loan that, ultimately, can be forgiven and would not have to be repaid.
Opportunity Zones. An Opportunity Zone is an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. First, investors can defer tax on any prior gains until the earlier of the date on which an investment is sold or exchanged, or December 31, 2026, so long as the gain is reinvested in a Qualified Opportunity Fund. Second, if the investor holds the investment in the Opportunity Fund for at least ten years, the investor would be eligible for an increase in basis equal to the fair market value of the investment on the date that the investment is sold or exchanged. For more information, click here.