State Incentives

Additional information on incentives may be found at the Idaho Department of Commerce website.

Idaho Business Advantage - Business Support

Businesses that invest a minimum of $500,000 in new facilities and create at least 10 new jobs averaging $40,000 annually, plus benefits, may qualify for a variety of incentives. Qualifying companies receive:

  •  An enhanced Investment Tax Credit of 3.75% up to $750,000 or 62.5% tax liability in any one year.
  • A new jobs tax credit starting at $1,500 and climbing up to $3,000 per job.
  • A 2.5% real property improvement tax credit up to $125,000 in any one year, along witha 25% rebate on sales tax paid on construction materials for the new facilities.
  • Upon request of the company, respective county commissioners may also authorize a full or partial property tax exemption.

Idaho Opportunity Fund (IOF)

The Idaho Opportunity Fund is a discretionary grant program that was established in 2013 with the intent of servicing 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. Beyond the requirements of other grant programs offered through the state of Idaho, the Idaho Opportunity Fund requires three key components;

1. Eligible Applicants: Idaho local governments (cities, counties, towns, etc)

2. Eligible Projects: The Director of the Department of Commerce may, in his sole discretion, award Idaho Opportunity Fund grants to local governments for public costs incurred wit the purpose to retain, expand or attract jobs to the State of Idaho. Eligible projects include:

  • Construction of, or improvements to, new or existing water, sewer, gas or electric utility systems for new or existing buildings to be used for industrial or commercial operations.
  • Construction, upgrade or renovation of other infrastructure related items including, but not limited to, railroads, broadband, parking lots, roads or other public costs that are directly related to specific job creation or expansion projects.
  • Flood zone or environmental hazard mitigation.

3. Community Match: The local government must be able to provide allowable match in a negotiated amount that represents a material commitment from the local government that is commensurate with the local government’s financial condition. The Director of the Department of Commerce has the authority to approve alternate forms of match or waive local match requirements.

New Incentives

Businesses that make qualifying new investments may earn an income tax credit. This credit can be offset up to 50% of a company’s state income tax liability and may be carried forward up to 14 years.

New Jobs Income Tax Credit

$1,000 Tax Credit

Businesses may earn a $1,000 tax credit for each additional employee added. New employees must work a minimum of 20 hours per week, make at least $15.50 an hour, and be eligible to receive employer-provided coverage under an accident or health plan. The credit may be carried forward up to three years.

$500 Tax Credit

Businesses may earn a $500 tax credit for adding new jobs in the production, assembly, fabrication, manufacturing or processing of natural resources. This credit cannot be combined with the $1,000 new jobs credit.

Qualified Investment Exemption

This exemption may be applied in lieu of the investment tax credit. A two-year exemption from property tax on qualified personal property is available only if a loss was incurred in the second preceding year in which the property is placed in service. The loss must have been computed without regard to net operating loss carryover or carry back.

Tax Reimbursement Incentive (TRI)

The TRI is designed to accelerate the growth of new business opportunities, encourage the creation of high-paying jobs, and diversify the state’s and local community’s economy. The Tax Reimbursement Incentive is a performance-based economic development tool that provides a  refundable tax credit up to 30% for up to 15 years on new Business Entity income tax, sales tax, and payroll taxes paid as a result of Meaningful Project. The TRI will perpetually generate the revenues needed to fund the incentive.

This credit is available to both existing and new companies seeking expansion in the state. The tax credit percentage and project term are negotiated based upon the quantity and quality of jobs created, state/regional economic impact and return on taxpayer investment for Idaho, among others.

The Tax Reimbursement Incentive authorized shall be the lowest approved percentage and term that will incentivize creation of New Jobs and New State Revenue.

Incentives will be evaluated and recommended to the Council by the Director, with final approval by the Council. The TRI will be governed by Incentive Agreements between the Department and Applicant.

Avista Utilities Incentives - Commercial

Idaho Commercial Energy Efficiency Programs

Avista offers a variety of energy management tools and services for commercial and industrial customers in Idaho who receive retail electric and natural gas distribution from Avista. View a list of a few incentive programs available:

  • Demand Controlled Ventilation Incentive Program
  • EnergySmart Program for Grocers
  • Lighting Incentive Program
  • Natural Gas HVAC Program
  • Site-Specific Incentives
  • Windows and Insulation Program

Find out more information on these and other incentive programs available to businesses by going to Avista Utilities’ website.