Idaho: Hopes Tied
to New Tax Package

In order to turn around its business attraction capabilities, the state of Idaho has taken several steps to help companies in the site selection process. One move was the creation of a new statewide economic development group called the Idaho Economic Development Association. The group consists of more than 30 different economic development organizations throughout the state that will work to support the efforts of the Idaho Dept. of Commerce and serve as the heart for enhanced professional development for local and regional economic development groups. It will also be a clearinghouse for information on issues of regional or statewide importance.
        "We recognize that maintaining a strong, vital Idaho economy demands that we find new ways to make our economic development efforts more effective," says Bob Potter, president of the organization.
        The new association most recently met in Boise where it voted to endorse Gov. Dirk Kempthorne's new tax package. As part of the package, House Bill 59 includes a corporate income tax rate reduction to 7.8 percent and tax credits for research and development, job creation, venture capital, broadband telecommunication improvements, and companies that relocate or expand into rural counties with high unemployment or low personal income.
        In addition to the research and development tax break, the state has moved forward on other high-tech initiatives. Gov. Kempthorne's Science and Technology Advisory Council created the state's first-ever strategic plan for science and technology. The plan calls for state investments in education, transportation, telecommunications and venture capital.
        With these efforts, the state hopes to build on its already sturdy foundation of high-tech employers, which has grown significantly in recent years. For example, Idaho's exports jumped 43 percent to $1.5 billion during the first six months of 2000 primarily because of its high-tech products.