Aggressive new tax incentives for large and small companies are now available for businesses willing to relocate headquarters or major operations to Idaho.
      Through 2009 Idaho is offering significant reductions in business income, sales and property taxes for companies meeting the requirements of the Idaho Corporate Advantage and Idaho Business Advantage incentive packages.
      "These incentives add to Idaho's reputation as a great place to do business," Idaho Governor Dirk Kempthorne said. "Idaho companies enjoy a favorable business climate, a skilled workforce, an affordable cost of living and a quality of life few states can match."
      The Idaho Corporate Advantage provides incentives that could eliminate annual state tax liability for a number of years. To qualify, companies must create at least 500 jobs averaging $60,000 a year plus benefits and invest a minimum of $50 million in headquarters or administrative buildings.
      The Idaho Business Advantage is available for smaller companies that can't meet the Corporate Advantage requirements. To qualify, companies must create at least 10 new jobs with a minimum starting salary of $40,000 a year plus benefits and invest a minimum of $500,000 in new headquarters or administrative buildings.
      More and more companies are recognizing the value of Idaho's business climate. Forbes magazine and Economy.com recently ranked Boise No.1 as the best metro area to jump-start a business or a career. INC. magazine examined 274 population centers in 2005 looking for job creation and other signs that businesses are thriving and ranked Boise No. 2.
      Several Fortune 500 companies already call Idaho home including Albertsons, Micron Technology and Washington Group International.
      Other Idaho companies include: Boise Cascade, AMI Semicon-ductor, IdaCorp, Coldwater Creek, J.R. Simplot Co. and Buck Knives, which last year moved its headquarters from El Cajon, Calif., to Post Falls.
      Idaho companies can take advantage of existing financial incentives and tax breaks including the following:

     Available for qualifying new investments in Idaho. The credit can offset up to 50% of your state income tax liability and may be carried forward up to 14 years.In lieu of this income tax credit, a two-year exemption from property tax on qualified personal property is available. The exemption is available only if a loss was incurred in the second preceding tax year in which the property is placed in service. The loss must have been computed without regard to any carryover or carryback of net operating losses.

     Available for each new job created by companies qualifying for Idaho's Workforce Development Training Fund program. UP TO $3000 REIMBURSEMENT per new job created in select rural counties.

     Available for any business that adds new employees whose annual earnings average $15.50 per hour or more and who are eligible to receive employer provided coverage under an accident or health plan.

     Available for businesses that produce, assemble, fabricate, manufacture, or process natural resource products. May not be combined with the $1000 new jobs tax credit.

     Available for basic research and costs of qualified research that is performed in Idaho. The research and development tax credit is transferable.

     Up to $750,000 on Idaho State Income Tax for qualified broadband equipment. Credit is transferable.

     Idaho sales and use tax exemptions are available for equipment and materials used directly in manufacturing, research and development, processing, mining, fabrication, or logging operations; and for clean rooms used in semiconductor and semiconductor equipment manufacturing.

     Carry back up to $100,000 loss per tax year for two years. Losses not absorbed in two years may be carried forward for a maximum of 20 years or until absorbed.

     Applies to business inventory and registered motor vehicles, vessels, and aircraft.

     Companies with property values that exceed $800 million are exempt from paying additional property taxes on the excess value if they make a yearly capital investment of at least $25 million and employ a minimum of 1,500 full-time employees.

     Plus an additional exemption from sales and use tax for goods purchased by a carrier in its business and delivered outside of Idaho.

     Applicable to sales and use tax for equipment required by state and federal regulation. Required pollution control facilities are exempt from property tax.

     Offers low interest loans for any purpose to qualifying small businesses. Loans are offered by commercial banks and have up to 85% Small Business Administration guaranty.

     Available to finance manufacturing, processing, production, and assembly projects. Tax-free bonds are issued by public corporation with project or business serving as collateral.
      Idaho is routinely touted as a top place to live and do business, and the state's business operating costs are some of the lowest in the nation.