Foreign Direct Investment (FDI)

Investment in Idaho

Locating businesses to Idaho is attractive because of the incentives and tax credits available. The federal tax burden for corporations in the United States is generally around 35-39% and varies depending on the type of company or corporation. This rate is generally the same for all business entities throughout the United States. The corporate tax rate in Idaho is 7.6% and is competitive with other states because of the range of tax incentives, credits and opportunities for tax-free municipal bonds that proportionally lower this rate. Utah, Oregon and Montana and other surrounding states may have lower corporate rates (UT-5%, OR-6.6%, MT-6.75%) but the Idaho rate is off-set by tax incentives, credits and opportunities for tax-free municipal bonds. Idaho also has a program that allows companies to carry back net operating losses up to $100,000 per tax year for two years. Losses not absorbed in two years may be carried forward up to 20 years.

Idaho Corporate Advantage

Large companies relocating headquarters or investing in a major administrative expansion in Idaho will benefit from an incentive package known as the Idaho Corporate Advantage. Qualifying companies must invest at least $50 million and hire 500 new employees. These companies receive a 6 percent tax credit up to $5 million in any one year and an enhanced new jobs tax credit starting at $1,500 per job and climbing to $3,000 per job depending on salary levels. A 10 percent real property improvement tax credit of up to $500,000 in any one year is also available along with temporary property tax rebate for new headquarters and administrative buildings of up to $2 million a year. Companies also qualify for a rebate of all sales taxes paid on materials used in the construction of new buildings.

Idaho Business Advantage

Smaller companies relocating to Idaho or starting operations qualify for a range of incentives that can lower the actual amount of taxes paid and make Idaho competitive with other states around the nation. The Idaho Business Advantage is available for smaller businesses making a minimum $500,000 investment in new plant and facilities and creating at least 10 new jobs paying above $40,000 annually plus benefits.

Qualifying companies receive an enhanced Investment Tax Credit of 3.75 percent up to $750,000 in any one year, a new jobs tax credit starting at $1,500 and climbing to $3,000 per job, a 2.5 percent real property improvement tax credit up to $125,000 in any one year along with a 25 percent rebate on sales tax paid on construction materials for the new plant.