1. Tax Reimbursement Incentive (TRI)

Key Details:

• Performance-based incentive providing tax credit up to 30% for up to 15 years
• Applies to new corporate income tax, sales tax, and payroll taxes
• Requires creation of high-paying jobs in Idaho
• Minimum job creation: 20 new jobs in rural areas, 50 in urban areas
• New jobs must pay equal to or greater than the average county wage
• Requires meaningful community contribution
• Company must prove stability and significant economic impact
• Cannot be combined with New Market Tax Credits

ANALYSIS

The Tax Reimbursement Incentive is clearly targeted at businesses much larger than 20 employees, with job creation requirements that exclude most small businesses. This incentive exemplifies the focus of economic development efforts on attracting and retaining large businesses, offering little to no direct benefit for small enterprises under 20 employees.

Small Businesses

The TRI program effectively excludes the vast majority of small businesses under 20 employees. The job creation requirements alone (20 new jobs in rural areas, 50 in urban areas) would more than double or triple the workforce of these small enterprises, making it an unrealistic target. The focus on high-paying jobs at or above the average county wage further disadvantages small businesses, which often operate on tighter margins. The need to demonstrate stability and significant economic impact also favors larger, more established companies. While there might be some indirect benefits if a large company attracted by this incentive creates opportunities for small business suppliers, the TRI itself offers no direct advantages to small businesses under 20 employees.

Big Businesses

The Tax Reimbursement Incentive offers an exceptionally attractive package for large businesses looking to expand or relocate to Idaho. With tax credits of up to 30% for up to 15 years on new corporate income, sales, and payroll taxes, this incentive can significantly reduce the cost of a major expansion or relocation. The flexibility in credit percentage and term, based on job quality and economic impact, allows your company to potentially maximize its benefits by bringing high-quality jobs to the state. If you're considering a significant job creation project - whether as an out-of-state company looking at Idaho or an in-state business planning major expansion - this incentive could substantially improve your project's financial outlook. The meaningful community contribution requirement also offers an opportunity to build strong local relationships, potentially leading to a more supportive business environment for your operations.