Idaho spreads word on tax breaks – Governor signs bills designed to draw businesses

Idaho Commerce and Labor Director Roger Madsen said he has told three corporate CEOs about Idaho’s new incentive plan for large companies, and he has meetings in Tennessee next week and soon in New Mexico to woo some more.

He said his agency has set up an internal team to find the best way to market the slate of sales, income and property tax breaks signed in to law Wednesday morning by Gov. Dirk Kempthorne, who has championed the Corporate Headquarters Incentive Act.

The agency already touts Idaho’s tax and lifestyle advantages and is taking the new incentives and revamping Idaho’s pamphlets and brochures, and plans are in the works for a DVD aimed at corporate leaders, Madsen said.

Commerce and Labor spokesman Dwight Johnson said he’s working on a list to target the Idaho businesses that most likely could use the new breaks, and officials are targeting out-of-state corporations, too.

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Additional Information
About the new incentives

Gov. Dirk Kempthorne signed two business tax incentive bills Wednesday. The measures are designed to bring in more money through corporate, property and employee income taxes than they will pay out as incentives to companies, Tax Committee Chairman DuWayne Hammond said.

Here’s a look at what they would offer:

For large companies:

Idaho will offer sales, income and property tax breaks to companies that bring in 500 full-time jobs with benefits and spend at least $50 million on a new facility in Idaho.
The jobs have to either all pay at least $50,000 or average $60,000. If the company opts to average wages, the lowest-paying jobs they can count must pay better than $32,240 a year, a wage that statistics show generally allows an employee to afford company-sponsored insurance. Only jobs paying $200,000 a year or less can be counted, so a few high-paid executives can’t skew the numbers.

For smaller companies:

The state will provide smaller sales and income tax breaks to companies that create as few as 10 new jobs, each paying at least $40,000 with benefits. To qualify, the company must also spend $50,000 per employee on Idaho facilities or equipment. Counties can offer property tax breaks if local officials agree.

Gregory Hahn
The Idaho Statesman

Full Story: http://www.idahostatesman.com/apps/pbcs.dll/article?AID=/20050414/NEWS06/504140343/1056