About this programme
Idaho Business Advantage is a tax incentive package from Idaho Commerce, the state's Department of Commerce, aimed at businesses making a significant investment and creating well-paid jobs in the state.
It bundles several kinds of incentives together, tax credits, a sales and use tax rebate, and a property tax exemption option, rather than offering a single benefit. Unlike the Idaho Tax Reimbursement Incentive, it has no formal application: qualifying businesses simply file the right tax documentation with the Idaho Tax Commission.
How it works
An Enhanced Investment Tax Credit of 3.75% applies as an income tax credit on all new, depreciable, tangible personal property placed in Idaho during the project period.
A Real Property Improvement Tax Credit of 2.5% applies as an income tax credit on new plant, buildings, and structural components that do not qualify for the Investment Tax Credit.
A Sales and Use Tax Rebate of 25% covers sales and use tax actually paid by the taxpayer or its contractors on property constructed, located, or installed within the project site during the project period.
A Small Employer Growth Incentive Exemption lets local county commissions exempt all or part of the new investment value from property taxes for a set period.
A New Jobs Income Tax Credit provides an income tax credit for new high-wage jobs.
The Idaho Tax Commission oversees the incentive. Interested businesses complete an 89SE tax form before filing taxes for the year in which credits are requested; there is no separate formal application.
Who can apply
The business must invest at least $500,000 in new facilities.
The business must create at least 10 new jobs, each paying at least $40,000 a year ($19.23/hour) plus benefits.
The average wage of additional new employees during the project period must be at least $15.50 an hour plus benefits.
Using Business Advantage does not preclude a company from also pursuing the Idaho Tax Reimbursement Incentive (TRI).
How to apply
- Complete an 89SE tax form prior to filing taxes for the year in which the credits are requested. There is no separate formal application beyond this tax documentation.
- Contact Idaho Commerce for a personalized, confidential review of how the incentive package could apply to your business.
Frequently asked
What investment and job thresholds does Idaho Business Advantage require?
At least $500,000 invested in new facilities, plus at least 10 new jobs paying at least $40,000 a year ($19.23/hour) with benefits, and an average new-employee wage of at least $15.50/hour with benefits.
What kind of benefits are included?
An Enhanced Investment Tax Credit (3.75%), a Real Property Improvement Tax Credit (2.5%), a Sales and Use Tax Rebate (25%), a Small Employer Growth Incentive property tax exemption, and a New Jobs Income Tax Credit.
Do I need to submit a formal application?
No. The Idaho Tax Commission oversees the incentive, and businesses simply file an 89SE tax form before filing taxes for the year the credits are requested.
Can I combine Business Advantage with the Tax Reimbursement Incentive?
Yes. Idaho Commerce's own materials note that using Business Advantage does not preclude a company from also pursuing TRI.
More funding in Idaho
Collateral Support Program (CSP 2.0)
Idaho Housing and Finance Association · Idaho
Pledges cash deposits with participating Idaho lenders so small businesses short on collateral can still qualify for a business loan.
Idaho Tax Reimbursement Incentive (TRI)
Idaho Commerce · Idaho
Refunds up to 30% of the new state taxes a company generates, for 15 years, to businesses that add 20 to 50 well-paid Idaho jobs.
Idaho Global Entrepreneurial Mission (IGEM) Grant Program
Idaho State Board of Education (Higher Education Research Council) · Idaho
Funds Idaho university research with strong potential to transfer new technology to private companies, through a two-stage proposal process.
State Trade Expansion Program (STEP) Grant — Idaho
Idaho Commerce · Idaho
Reimburses small Idaho exporters for costs of entering or growing sales in new overseas markets.
Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.