{"id":1420,"date":"2011-11-03T14:53:51","date_gmt":"2011-11-03T20:53:51","guid":{"rendered":"http:\/\/stateimpact.npr.org\/idaho\/?p=1420"},"modified":"2011-11-03T14:53:51","modified_gmt":"2011-11-03T20:53:51","slug":"idahos-5-most-popular-business-tax-incentives","status":"publish","type":"post","link":"https:\/\/stateimpact.npr.org\/idaho\/2011\/11\/03\/idahos-5-most-popular-business-tax-incentives\/","title":{"rendered":"Idaho&#8217;s 5 Most Popular Business Tax Incentives"},"content":{"rendered":"<div id=\"attachment_1487\"  class=\"wp-caption module image right\" style=\"max-width: 272px;\"><a class=\"fancybox\" title=\"\" href=\"http:\/\/stateimpact.npr.org\/idaho\/files\/2011\/11\/TaxButton_PeteGardner_gett.jpg\" rel=\"\"><img decoding=\"async\" loading=\"lazy\" class=\"size-medium wp-image-1487\" title=\"TaxButton_PeteGardner_gett\" src=\"http:\/\/stateimpact.npr.org\/idaho\/files\/2011\/11\/TaxButton_PeteGardner_gett-300x330.jpg\" alt=\"\" width=\"272\" height=\"300\" srcset=\"https:\/\/stateimpact.npr.org\/idaho\/files\/2011\/11\/TaxButton_PeteGardner_gett-300x330.jpg 300w, https:\/\/stateimpact.npr.org\/idaho\/files\/2011\/11\/TaxButton_PeteGardner_gett-220x242.jpg 220w, https:\/\/stateimpact.npr.org\/idaho\/files\/2011\/11\/TaxButton_PeteGardner_gett.jpg 393w\" sizes=\"(max-width: 272px) 100vw, 272px\" \/><\/a><p class=\"wp-media-credit\">Pete Gardner \/ Getty Images<\/p><p class=\"wp-caption-text\"> <\/p><\/div>\n<p>Idaho offers nine different tax credit programs<del><\/del> for businesses.\u00a0 We&#8217;re highlighting the five most popular.\u00a0 The <a href=\"http:\/\/stateimpact.npr.org\/idaho\/2011\/11\/01\/idahos-investment-tax-credit-explained\/\" target=\"_blank\">investment tax credit<\/a> is used far more than any other credit-type incentive.\u00a0 In 2009, businesses collected more than $26 million<em>\u00a0<\/em>under that credit alone, according to the Division of Financial Management.<\/p>\n<p>Here&#8217;s a look at the other most frequently used business tax credits:<\/p>\n<ul>\n<li><strong>Research Activity Credit<\/strong>: <del><\/del>Enacted in 2001, it&#8217;s a five percent credit for expenses related to research completed by a small business, university or federal government entity.\u00a0 The research must be done in Idaho <del><\/del>to qualify.<\/li>\n<li><strong>Broadband Investment Credit<\/strong>: This is a three percent credit for purchases of qualified broadband equipment in Idaho.\u00a0 The credit is limited to no more than $750,000 per tax year, and no more than the taxpayer&#8217;s liability after all other credits in a single tax year.\u00a0 It can be sold to other taxpayers.\u00a0 It was enacted in 2001.<!--more--><\/li>\n<li><strong>Small Employer Capital Investment Credit:<\/strong> This credit can be used in lieu of the <a href=\"http:\/\/stateimpact.npr.org\/idaho\/2011\/11\/01\/idahos-investment-tax-credit-explained\/\" target=\"_blank\">investment tax credit<\/a> for <a href=\"http:\/\/www.legislature.idaho.gov\/legislation\/2005\/H0323.html#billtext\" target=\"_blank\">qualifying small businesses<\/a>.\u00a0 It provides an income tax credit of 3.75 percent on new equipment purchased in Idaho.\u00a0 This credit is limited to 62 percent of the company&#8217;s income tax liability for one year, rather than the 50 percent limit under the investment tax credit.\u00a0 It was enacted in 2005.<\/li>\n<li><strong>Small Employer New Jobs Credit<\/strong>: This provides an income tax credit ranging from $1,500 to $3,000 for each eligible new job created from 2006 to 2020.\u00a0 The average wage for people hired under this credit must be at least $15.50 an hour.\u00a0 This credit was enacted in 2005.\u00a0 The state believes employers will begin to turn to a new program called the <a href=\"http:\/\/legislature.idaho.gov\/legislation\/2011\/H0297.pdf\" target=\"_blank\">Hire One Act<\/a> instead<em>, <\/em>because the benefits are better<em>.<\/em><\/li>\n<\/ul>\n<p>This table shows the breakdown of all nine business tax credits for 2009, the most current <em>actual<\/em> data available.\u00a0 In total, businesses received almost $28 million in tax credits that year.<\/p>\n<p>[spreadsheet key=&#8221;0AiLU6Cs5LWZIdHdCZUYyZ2VZV2JQTXpzSkxjNWhqMVE&#8221; source=&#8221;Division of Financial Management&#8221; sheet=0 filter=0 paginate=0 sortable=0]<\/p>\n<p>The numbers for 2010 and 2011 are still projections.\u00a0 Here&#8217;s a look at the state&#8217;s prediction for business tax credit claims for 2011.<\/p>\n<p>[spreadsheet key=&#8221;0AiLU6Cs5LWZIdFkzZEtjV2RtalBLSzZld1dvb3RaeUE&#8221; source=&#8221;Division of Financial Management&#8221; sheet=0 filter=0 paginate=0 sortable=0]<\/p>\n<div class=\"related-content alignleft\"><h4 class=\"related-header\">Related<\/h4><div class=\"links\"><h5>Posts<\/h5><ul><li class=\"link\"><a href=\"http:\/\/stateimpact.npr.org\/idaho\/2011\/11\/02\/one-take-on-how-tax-incentives-work\/\">One Take on How Tax Incentives Work<\/a><\/li><li class=\"link\"><a href=\"http:\/\/stateimpact.npr.org\/idaho\/2011\/11\/01\/idahos-investment-tax-credit-explained\/\">Idaho\u2019s Investment Tax Credit Explained<\/a><\/li><li class=\"link\"><a href=\"http:\/\/stateimpact.npr.org\/idaho\/2011\/11\/01\/idaho-tax-incentives-whats-the-tradeoff\/\">Idaho Tax Incentives: What\u2019s the Tradeoff?<\/a><\/li><\/ul><\/div><div class=\"topics\"><h5>Topics<\/h5><p class=\"topic\"><img class=\"alignleft\" src=\"http:\/\/stateimpact.npr.org\/idaho\/files\/2011\/08\/Tax_BobTravaglione_getty-60x60.jpg\" height=\"60\" width=\"60\" \/><a href=\"http:\/\/stateimpact.npr.org\/idaho\/topic\/tax-credtis\/\">Your Guide to Idaho\u2019s Tax Credits<\/a><\/p><\/div><\/div>\n<p>Dan John manages tax policy at the<a href=\"http:\/\/stateimpact.npr.org\/idaho\/topic\/state-tax-commission\/\" target=\"_blank\"> Idaho Tax Commission<\/a>.\u00a0 He says the state doesn\u2019t just give out credits for the sake of giving credits.\u00a0 \u201cThe theory is that the amount that comes in tax from either other businesses that purchases are being made from, or from the employees of the businesses that made those, more than offsets the credits that are\u00a0given.\u201d<\/p>\n<p>But the state doesn&#8217;t really have a way of confirming that.\u00a0 John says the only hard data he sees is what&#8217;s on a company&#8217;s tax return.\u00a0 &#8220;We don\u2019t know all of the upsides of the tax credits and things,&#8221; John says.\u00a0 &#8220;We don\u2019t know what all of the people these companies are dealing with&#8230;how much more they paid because the company received the incentive and put something into the economy.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Idaho offers nine different tax credit programs for businesses.\u00a0 We&#8217;re highlighting the five most popular.\u00a0 The investment tax credit is used far more than any other credit-type incentive.\u00a0 In 2009, businesses collected more than $26 million\u00a0under that credit alone, according to the Division of Financial Management. Here&#8217;s a look at the other most frequently used [&hellip;]<\/p>\n","protected":false},"author":40,"featured_media":1487,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[15],"tags":[102,42],"acf":[],"_links":{"self":[{"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/posts\/1420"}],"collection":[{"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/users\/40"}],"replies":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/comments?post=1420"}],"version-history":[{"count":9,"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/posts\/1420\/revisions"}],"predecessor-version":[{"id":1470,"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/posts\/1420\/revisions\/1470"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/media\/1487"}],"wp:attachment":[{"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/media?parent=1420"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/categories?post=1420"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateimpact.npr.org\/idaho\/wp-json\/wp\/v2\/tags?post=1420"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}