Idaho Taxes

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BUSINESS TAXES | TAX CREDITS | TAX EXEMPTIONS

Idaho Tax Information

It is a public policy of the State of Idaho to encourage business development by providing a good climate for economic growth. With its sound tax structure, reasonable rates and the third lowest overall per capita tax burden among the 11 western states, Idaho makes good business sense.

State tax revenues come from a balanced mix of personal income, sales and corporate income taxes, providing a stable base with which to fund public services without unfairly burdening any sector.

In fact, Idaho’s overall tax burden per capita is among the ten lowest of the 50 states. In every category, taxes per capita are below the national average. The lower cost of doing business here can mean high profits for your company.

Idaho also has tax incentives that can increase profitability, including an investment credit and certain tax exemptions. As authorized by federal legislation, the Idaho Code provides for issuance of Industrial Revenue Bonds (IRB’s). Idaho cities and counties are able to form public corporations for the purpose of issuing these bonds. Idaho businesses are authorized to borrow up to $10 million at tax-exempt interest rates, which are significantly lower than conventional rates. These funds are available to help cities and counties provide sewers, water and roads to plant sites. Up to $500,000 for any one project is available.

Links of Interest

 

Fact Book

 

Idaho’s Tax Structure

Very Low Per Capita Tax Burden

Investment Tax Credits

Job Creation Tax Credits

Net Operating Loss Carry Back & Carry Forward

No Sales and Use Tax On Machinery and Equipment used in Manufacturing or Pollution Control

No Property Tax on Pollution Control Equipment

No Tax on Inventories and Goods in Transit