Foreign Direct Investment

Idaho’s economy is an attractive place to invest. The state’s economic growth is steady and our business environment is stable. Growing sectors include Idaho’s manufacturing, agri-business, forest products and technology and innovation industries. In fact, Idaho is home to over 800 software companies, with nearly half located near Boise, the state’s capital. Technology manufacturing is Idaho’s number one gross domestic product and investments in this sector continue to pay off.

The Boise area is nationally recognized as an emerging high-tech hub, while the Twin Falls area is known as a food manufacturing hot-spot. Idaho’s ten colleges and universities produce educated and energetic Idahoans ready to contribute to the companies they join. Many manufacturing facilities are also serviced by a workforce that’s a product of the state’s many technical colleges. To learn more about Idaho’s more than 750,000-strong workforce, check out the Idaho Department of Labor.

Idaho is an “at-will employment” state, meaning that employers are not required to enter into contracts for a specified period with employees. This gives both parties the flexibility to make decisions about continuing employment without the specter of protracted legal procedures. Idaho’s system also allows companies in the state to develop employment arrangements to reflect their specific policies and context. As a result, the terms and conditions of labor contracts in Idaho can reflect company priorities. However, Idaho isn’t without state or federal regulations. Employers must abide by federal minimum wage, anti-discrimination and benefit regulations, as well as state codes. These policies benefit the business community by ensuring equal treatment and creating an environment conducive to a productive workforce. Major Idaho state and federal labor laws include:

• Idaho Minimum Wage Law
• Federal Fair Labor Standards Act (FLSA)
• Idaho Child Labor Provisions
• Idaho Wage Payment Law
• Idaho Farm Labor Contractor Licensing

To learn more about federal regulations and Idaho’s employment laws, download the guide to Idaho’s labor laws

Idaho is firmly part of the great American melting pot. As a western state, Idaho’s history is a colorful mix of native peoples, pioneers, miners, and adventurers. Idaho’s capital is home to the largest Basque population outside of Spain and according to U.S. Census data, approximately one in ten Idahoans are Hispanic or Latino. Historically, states within the U.S. have largely deferred to federal immigration laws without creating duplicative state-specific legislation. In the last decade, some of Idaho’s neighbors have created their own laws that discourage immigration. Idaho is not one of those states. Idaho continues to welcome immigrants, and communities in Idaho see the benefits of attracting and keeping talent and industry from around the world. Requirements for businesses with employees in Idaho:

• Obtain a federal Employer Identification Number (EIN)
• Report all new hires to the Idaho Department of Labor per Idaho’s New Hire Reporting Law
• Obtain an Idaho withholding account and pay payroll taxes
• Complete an I-9 Employment Eligibility Verification Form within three business days. Request original documentation to confirm identity and immigration status. If you have questions, click here.
• Maintain the I-9 documentation for a period of three years from the date of hire or one year from the date of termination.
• Consider using the E-Verify system to confirm the immigration status of new hires (mandatory for public employers)

Ensure that you are not discriminating against workers based on national origin or citizenship status. [8 CFR Section 274B]

Similar to Idaho’s employment laws, the state’s tax policies are designed to attract, grow and retain businesses.

• Corporate income tax of 5.695% payable by corporations transacting business or authorized to transact business in Idaho.
• Personal income tax of up to 5.695% payable by individuals and owners of pass-through entities.
• Property taxes are assessed on business in Idaho and are determined according to a property’s current value.
• All retailers doing business in Idaho are required to get a seller’s permit and collect sales tax on the sale of goods they ship or deliver to customers in Idaho.
• Idaho does not impose a severance tax on the extraction of minerals, with the exception of a 2.5% severance tax on the value of oil and gas produced in Idaho.

Through a balanced mix of personal income, sales, property and corporate taxes, the State of Idaho provides quality public services including schools, cities, local law enforcement and highways.

For general Idaho tax information, visit the Idaho Tax Commission.