The Big Business Bonanza: A Numerical Illustration
To illustrate the true impact of these incentives, let's consider a hypothetical large business:
- Annual revenue: $50 million
- New investment: $10 million
- New jobs created: 100 at $40,000 annually
Under this scenario, the potential benefits from just the Idaho Business Advantage program are staggering:
- Enhanced Investment Tax Credit: $375,000
- Real Property Improvement Tax Credit: $125,000
- Sales and Use Tax Rebate: $150,000
- New Jobs Income Tax Credit: $100,000
- Small Employer Growth Incentive Exemption: $250,000 (over 5 years)
Total estimated value of incentives: $1,000,000
Now, consider that this same company, assuming a 10% profit margin, would owe approximately $325,000 in state corporate income taxes. The incentives not only wipe out their tax liability but provide an additional $675,000 in benefits.
Moreover, if this company were to invest $1 billion or employ 1,500+ people, they would qualify for even more extraordinary property tax exemptions, potentially saving millions more annually. The ability to combine these benefits with the TRI program further amplifies the advantages for large businesses.