Idaho Enacts Low-Risk Business Tax Incentives
A plan to use big tax breaks to lure businesses to expand in Idaho won the governor's stamp of approval.
Under the new law, which Gov. C.L. "Butch" Otter signed Thursday, Idaho would refund up to 30 percent of state corporate income taxes, payroll taxes and sales taxes to businesses that create 50 new jobs in urban areas and 20 in rural areas.
Proponents hope that will be enough to sweeten the deal for big employers mulling a move to the Gem State. The incentive will also apply to Idaho-based businesses that expand or take on a new project.
Sen. Jim Rice, R-Caldwell, said during a Senate debate last month that the tax incentives are a low-risk way for Idaho to compete with other states: Companies wouldn't reap the tax benefit until hitting the job-creation mark, even if it takes several years.