Incentives

Incentives are available at both the local and state level to new and expanding companies based on specific qualifying factors and criteria.

Local Incentives

The City of Eagle has established policies and procedures for incentives in an effort to develop and expand the local economy by promoting and encouraging development and redevelopment projects that enhance the City's economic base and economic diversity and expand job opportunities. 

In furtherance of these objectives, the City will, on a case-by-case basis, give consideration upon request to providing economic incentives to applicants in accordance with the policies and procedures.  The policies and procedures are not intended to obligate the City to provide economic incentives to any applicant. The decision whether to approve or deny economic incentives for any applicant shall be at the discretion of the Council; no program or agreement is effective unless and until it is approved by the Council.

To be considered for incentives, a project must:
  • Result in an increased taxable value for the City in real property taxes and/or increased sales and use tax (excluding inventory and supplies);
  • Be determined by the City Council to bring benefit to the City in that it will make a unique contribution to the development efforts in the City, due to its magnitude, significance to the community or aesthetic quality; or
  • Will result in increased meaningful jobs within the City.
Incentives are based on several qualifying factors, such as; project investment, the number of new jobs created or jobs retained, payroll wages, and overall economic benefit to the community.  Any request for incentives must be approved by the Mayor and Eagle City Council.

State Incentives

Idaho State Tax Overview 
 Ada County Property Tax Average 1.5%
 Sales and Use Tax 6%
Tax on Services (telecommunications and utilities) None
Local Option Sales Tax None
Inventory Tax None
Corporate Income Tax 6.925%
Personal Income Tax 6.925% (top bracket)

All Businesses are Eligible for the Following:
  • 3% Investment Tax Credit:  On all new tangible personal property (machinery and equipment) with a carryover of 14 years OR a two-year exemption from all taxes on personal property on the qualified investment (can offset up to 50% of income tax liability
  • Personal Property Tax Exemption:  On the first $100,000 of personal property, such as equipment and furnishings
  • 5% Tax Research Credit:  On qualified research expenses
  • Energy Conservation Rebates:  Through efficient energy use up to $100,000 per year per site 

Companies may also qualify for consideration of the following 
Idaho State Incentives and Tax Credits:



Tax Reimbursement Incentive
Companies who bring new value-added jobs to the state of Idaho may be eligible for a tax reimbursement of up to 30% of their payroll, sales and income taxes for a negotiated period of up to 15 years. To qualify, companies must create 50+ jobs in an urban setting or 20+ for rural with wage levels above the county average wage. Projects must be able to pass the “but-for” test (but for the incentive, the project would not have occurred).

Data Center Sales Tax Exemption
New data centers choosing to locate in Idaho will be eligible for sales tax exemption on server equipment as well as construction materials used in the construction of the data center facility.

Idaho Business Advantage

To qualify, a company must make a minimum $500,000 investment in new facilities and create at least 10 new jobs that pay at least $40,000 annually plus benefits, with additional jobs paying an average of $15.50 per hour during project period, may qualify for the following:

  • An enhanced investment tax credit of 3.75% up to $750,000 or 62.5% of corporate income tax liability in any one year.
  • A new jobs tax credit from $1,500-$3,000 for new jobs paying $24.04 per hour or more.
  • A 2.5% real property improvement corporate income tax credit up to $125,000 in any one year along with a 25% rebate on sales tax paid on construction materials for the new facilities.
Upon request of the business, the local county commissioners may also authorize a partial or full property tax exemption for up to 5 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.

Capital Investment Property Tax Exemption
Businesses that invest at least $3 million in new manufacturing facilities may receive a partial or full property tax exemption for up to 5 years from local county commissioners.

100% Sales Tax Exemption
  • Production Sales Tax Exemption on equipment and raw materials used directly in manufacturing, processing, mining, fabrication or logging operations; for clean rooms and semiconductor equipment manufacturing; and for equipment or material used in research activities. Processing materials, substances, or commodities for use as fuel for the production of energy are also exempt.
  • Utility and Industrial Fuels Sales Tax Exemption on utilities and industrial fuels such as power, water, natural gas and telephone.
Property Tax Exemption
Businesses that invest at least $3 million in new manufacturing facilities may receive a partial or full property tax exemption for up to 5 years from local county commissioners.  This is a "but for" incentive that must be applied for prior to the issuance of any building permits or start of construction.

Workforce Development Training Fund
The Idaho Workforce Development Council offers Industry Sector Grants, Innovation Grants and Employer Grants.

  • Industry Sector Grants are designed to engage employers in developing new training solutions that address Idaho's workforce issues and fill skills gaps. The Idaho Workforce Development Council will accept Industry Sector Grant applications on a non-competitive, first come, first-served basis.
  • Innovation Grants can fund projects that address local workforce development needs. Projects may provide skills training to individuals and/or assist individuals with connecting to careers.

New or enhanced training must address specific employer-identified skills gaps in the community; training cannot supplant or compete with current training opportunities.

Training may include work-based learning opportunities, classroom training, or virtual training that addresses the skill gaps identified by employers in the community.

Assisting individuals to connect to careers may include providing information and outreach on career education and workforce training opportunities and/or soft skill development.

  • Employer Grants are available to Idaho employers who are increasing their current workforce and/or retraining existing workers with skills necessary for specific economic opportunities or industrial expansion initiatives.
  • Outreach Projects: The Workforce Development Council’s Outreach Committee reviews and provides funding for proposals that will provide public information and outreach on career education and workforce training opportunities, including existing education and training programs and services not funded by the training fund. Funding is provided on a reimbursement basis. All Outreach Project Applications must be received at least seven days in advance of the next Outreach Committee meeting.  If you have questions, please contact Caty Solace at caty.solace@wdc.idaho.gov
Idaho College Savings Program Employer Tax Credit
Employers are eligible to receive a 20% tax credit for contributions made to an employee’s IDeal college savings account. The tax credit is capped at $500 per employee, per taxable year.

Additional Resources



State Incentive One-Sheet or Manual
 For more details on these and other incentives, download the Idaho Department of Commerce incentives one-sheet or the full incentive manual.  

Idaho Global Entrepreneurial Mission (IGEM)
The 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.