Incentives

LOCAL INCENTIVES 

Idaho’s governor and legislature are decidedly pro-business, with a consistent record of tax and business incentives, a healthy state rainy day fund to avoid raising taxes (unlike other states during recessionary times), and no “hidden” taxes in addition to income tax which make corporate tax burdens heavier than at first they may appear.
One “plus,” which few other states have in this national and global economy, is a balanced budget. That’s right; Idaho is debt-free. It’s state law.

State incentives include:
• Reimbursement up to $3,000 for costs of training a new employee or retaining one facing permanent layoff
• State skills training programs tailored to corporate needs
• On-site consultations from state workforce experts
• Tax credits for investments, new job creation, real property improvement, and research; exemptions; and tax caps for large businesses
“The state agencies have been very business-friendly. We looked at a lot of places – New Hampshire, Colorado, and we had been located in California. Idaho is by far the best choice. It’s been the reason we’ve been very successful,” said Dr. Lorna Finman, Stanford physicist and owner of LCF Enterprises in Post Falls.
Tax Increment Financing. There are several redevelopment districts (?) Lake District, River District, located in the CdA region where financing is available through the Urban Development Agency.
In 1985, the Idaho state legislature adopted the Local Economic Development Act authorizing the use of tax increment financing. There are currently two redevelopment districts located in Coeur d’Alene. Financing for development within these districts is available through Coeur d’Alene’s Redevelopment Agency known as LCDC. This agency can provide businesses relocating their facility within these districts some attractive financing opportunities that will help pay for required infrastructure.
Here’s an example: The Mill River development team, with LCDC partnership funding, has reclaimed an old forest product mill site and is creating a 100-acre mix-use live, work and play development along the Spokane River. In January 2005, LCDC entered into an owner participation agreement with the Mill River development team to aid with the establishment of project-related public improvements including: public roadway construction, traffic signalization, water & sewer main line extensions, street scaping, and creation of a public beach and park on 1,500 feet of Spokane river water frontage.
The Lake City Development Corporation (LCDC) is Coeur d’Alene’s redevelopment agency and was established by the City Council in 1997.
Enter links to all the urban renewal agencies
For more information about Tax Increment Financing (TIF) visit the Lake City Development website: www.lcdc.org
Infrastructure or support services for business planning and operations. Examples include:
Personal Property Tax Exemption. Businesses are allowed an exemption on the first $100,000 of “personal local incentives are by statute and available as tax exemptions or credits, assistance with public:
 property” (e.g., equipment and furnishings)
 Property Tax Exemption. A full or partial property tax exemption up to 5 years (renewable annually) can be granted by the Kootenai County Board of County Commissioners (BOCC), dependent on total capital investment (minimum of $500,000), types of jobs created, how much wages are above county average ($17.61/hour), and the company’s long-term commitment to the county.
 Property Tax Exemption on Motor Vehicles. Standard exemption for all businesses in the state
 Idaho Department of Labor Support Services. Available to qualified businesses from the regional office. Services include:
• Customized Recruiting Services, including one-on-one assistance to help find, screen and hire the right employees, along with access to the local office to conduct interviews or hold a job fair
• Customized Training Services, including on-the-job training programs that develop skills customized to a company’s specific processes
• Customized on-site consultations to assess workforce needs from state workforce experts
• Workforce Development Training Funds as reimbursement for employers who are expanding or trying to retain at least five positions

Idaho is a pro-business state, providing a variety of tax and business incentives to help both existing and new businesses equally. In Idaho, you can count on a stable tax environment; our legislators kept a balanced budget through the recession without raising taxes and is currently rebuilding a healthy “rainy day fund’ because they understand the importance of regulatory certainty and economic stability.

 Examples of state incentives include:

 Investment Tax Credit. 3.0% on all new, depreciable, tangible personal property placed in Idaho
 Research and Development Tax Credit. 5.0% tax credit on qualified research expenses
 Sales Tax Exemption on Utilities & Industrial Fuels. Standard exemption for all business in state
 Production Sales Tax Exemption. Businesses purchasing equipment and raw materials used directly in manufacturing, processing, mining, fabrication, logging, or semi-conductor may earn a sales tax exemption
 Real Property Tax Credit. 2.5% on investments in new plants, buildings, and structural components placed in service in Idaho
 Idaho Business Advantage. Enhanced tax credits and rebates for companies investing $500K, with at least 10 jobs paying over $40,000/year and additional jobs averaging $15.50/hour
 New Job Tax Credit. Up to $3000 per new job created
 Tax Reimbursement Incentive (TRI). Businesses that create a minimum number of jobs (20 in rural areas; 50 in urban communities), with an annual wage equal to or above the county annual wage (currently calculated at $17.61/hour), may be eligible to receive a refund of up to 30% of their income, sales and payroll taxes for up to 15 years. Other rules apply.

For a complete listing of the state of Idaho’s tax incentives, please visit: https://commerce.idaho.gov/incentives-and-financing/incentives/

Local incentives are by statute and come in the form of tax exemptions or assistance with public infrastructure via tax increment financing. Other local and state incentives are offered in the form of credits, exemptions or resources, and are available for both new and existing businesses. Examples include:

· Personal Property Tax Exemption: Businesses are allowed an exemption on the first $100,000 of “personal property,”  such as equipment and furnishings

· Property Tax Exemption on Motor Vehicles: Standard exemption for all businesses in the state

· Property Tax Exemption: A full or partial property tax exemption up to 5 years (renewable annually) can be granted by  the Kootenai Commissioners, awards are dependent on total capital investment, type of jobs created, how much wages are above county average, and the company’s long term commitment to the county

For additional information and a complete listing of tax incentives, please visit: Idaho Commerce

STATE INCENTIVES

Idaho is pro-business, providing a variety of tax and business incentives to help both existing and new businesses equally. In Idaho, you can count on a stable tax environment.

  • Idaho Department of Labor Support Services: is available to help keep employees ahead of the curve in the ever-changing work environment. Services include:
    • Customized Recruiting Services, including one-on-one assistance to help find, screen and hire the right employees, along with access to the local office to conduct interviews or hold a job fair
    • Customized Training Services, including on-the-job training programs that develop skills customized to your business processes
    • Customized on-site consultations to assess workforce needs from state workforce experts
    • Workforce Development Training Funds as reimbursement for employers who are expanding or trying to retain at least five positions
  • Investment Tax Credit: 0% on all new, depreciable, tangible personal property placed in Idaho
  • Research and Development Tax Credit0% tax credit on qualified research expenses
  • Sales Tax Exemption on Utilities & Industrial Fuels: Standard exemption for all business in state
  • Production Sales Tax Exemption: Businesses purchasing equipment and raw materials used directly in manufacturing, processing, mining, fabrication, logging, or semiconductor may earn a sales tax exemption
  • Real Property Tax Credit: 5% on investments in new plants, buildings, and structural components placed in service in Idaho
  • Idaho Business Advantage: Enhanced tax credits and rebates for companies investing $500K, with at least 10 jobs paying over $40,000/year and additional jobs averaging $15.50/hour
  • Tax Reimbursement Incentive (TRI): Businesses that create a minimum number of jobs (50 new jobs in urban communities), with an annual wage equal to or above the county annual average wage (currently at $16.30) may be eligible to receive a refund of up to 30% of their income, sales and payroll taxes for up to 15 years. Other rules apply

LOCAL ECONOMIC DEVELOPMENT AGENCIES

Tax Increment Financing. Three cities in Kootenai County provide tax increment financing to help with public infrastructure construction. The Center Point property is in the PF Urban Renewal District and financing is available for qualified projects. Local economic development agencies are:

CONTACT US

208-667-4753

josh@cdaedc.org   |   loren@cdaedc.org

COEUR D'ALENE, IDAHO