Tax Rates

Sales & Use (Excise Tax) is 6%

Idaho does not tax services including telecommunication services, and utilities such as water, gas, electricity, or natural gas; in addition, Caldwell does not have a local option sales tax.

Caldwell (Canyon County) Property Tax is 1.5-2.5%

Personal (machinery/equipment) and real (land/buildings) based on assessed market value.

Personal Income Tax Rate is 1.6% - 7.8%

Idaho income tax is based on a bracketed system with different rates applicable to individuals with varying income levels.

Other Important Rates:

• The first $100,000 of Personal Property Tax is exempt from taxation
• Minimum Wage (per hour) - $7.25
• Union Membership in Idaho (Idaho is a Right to Work State) - 4.7% (compared to the national average of 11.3%)

Corporate Income Tax is 7.4%

Corporations that are taxable in Idaho and another state or country or are part of a unitary group of corporations, use a three-factor formula to ascertain how much of the business is conducted in Idaho. The apportionment formula is made up of a property factor, a payroll factor, and a sales factor. These three factors, with the sales factor being double weighted for all taxpayers (except for electrical and telephone companies) are totaled and divided by four to compute the Idaho apportionment factor. The Idaho apportionment factor is then applied to the business income of the corporation to compute income assigned to Idaho. Non-business income allocable to Idaho is added to the income apportioned to Idaho to arrive at Idaho taxable income.

Local & State Incentives

Caldwell Incentive Options

Property Tax Exemption

Businesses investing in new manufacturing facilities may receive property tax exemptions from the Canyon County Commissioners.  To qualify, businesses must invest a minimum of $3 million in new or expanded facilities. The Canyon County Commissioners have a history of exempting new manufacturing/processing investment against real and personal property taxes for up to 5 years.

Responsible Agency: Canyon County Commissioners

Contact: Mr. Joe Cox, Chief Deputy Assessor, Canyon County, Idaho

E-mail: jcox@canyonco.org

Phone: 208-454-7437

CDBG Infrastructure Advantage Grant

The City of Caldwell has been granted “Entitlement Community” status by the U.S. Department of Housing and Urban Development (HUD), thus providing the City annual funding through the Community Development Block Grant (CDBG) program.  The primary objective of the CDBG Entitlement funds is to provide benefit to low-and moderate income residents.  If a business is in need of infrastructure improvement to the site, and agrees to make jobs available to low-and moderate income residents, that business may qualify for assistance in offsetting the infrastructure costs.

Responsible Agency:  City of Caldwell Economic Development

Contact: Steve Jenkins, Economic Development Director

E-mail: sjenkins@cityofcaldwell.org

Phone: 208-455-4731

Industrial Revenue Bonds

Industrial Revenue Bonds (IRBs) finance the construction, enlargement, or equipping of manufacturing plants, and a limited number of non-manufacturing facilities. These bonds serve as a powerful incentive for businesses undertaking capital investment projects that will provide new jobs and an expanded tax base, both of which will enhance the economic well-being of the Caldwell community and the State. Caldwell has an established local Industrial Development Corporation, which is positioned to issue bonds. The process through the Industrial Development Corporation requires several steps, including adoption of inducement resolution authorizing issuance of the bonds, public hearing, City Council approval, and publication of bond resolution. This process takes approximately 60 days to materialize.

Responsible Agency: Caldwell Industrial Development Corporation

Contact: Steve Jenkins, Economic Development Director

E-mail: sjenkins@cityofcaldwell.org

Phone: 208-455-4731

Foreign-Trade Zone 280

The Foreign-Trade Zone (FTZ) is a specially designated area in Caldwell, located in or adjacent to a U.S. Customs Port of Entry, and is considered to be outside the Customs Territory of the U.S. There are several benefits businesses can take advantage of when using a FTZ including paying no duty on re-exported merchandise from a FTZ.  If the merchandise is sold domestically, then no duty is paid until it leaves the zone. Generally, no duty is paid on waste or yield loss and duty on scrap is eliminated or reduced. There are several other ways FTZ can assist your business.The activation process for FTZ designation may take between 90-120 days.

Responsible Agency:  Southwest Idaho Manufacturers’ Alliance (SWIMA)

Contact: Steve Jenkins, Economic Development Director, SWIMA/Foreign-Trade Zone 280

E-mail: sjenkins@cityofcaldwell.org

Phone: 208-455-4731

City of Caldwell “Red Carpet” Program

City of Caldwell Development Services Department commits to expediting all permits and inspections for industrial use. Further, the plan review team will work closely with the clients’ architects and engineers to assure the most cost/time-efficient building and site available. In a coordinated effort, the City of Caldwell offers a single, primary contact to assist and oversee the local day-to-day activity. This single-point contact will be available through all phases of the project; from the preliminary initiative, the incentive phase, final building design, to the grand opening and beyond.

Responsible Agency: City of Caldwell

Contact: Angelica Gomez, Planning and Zoning Administrative Asst.

E-mail: agomez@cityofcaldwell.org

Phone: 208-455-4664

Infrastructure Advantage

The City of Caldwell is committed to working with the development in providing additional infrastructure (water/sewer/roads) as needed/desired to make the site suited to the particular use.  

Responsible Agency: City of Caldwell, Public Works (for roads, water, sewer)

Contact: Robb MacDonald, Public Works Director

E-mail: rmacdonald@cityofcaldwell.org

Phone: 208-455-4682

State of Idaho Incentive Options

Tax Reimbursement Incentive

The state of Idaho's new performance-based economic development tool features a tax credit of up to 30% for up to 15 years on new state revenues (corporate, sales and withholding taxes paid to the state) that would be available to Idaho companies seeking expansion or new companies seeking relocation in the state of Idaho.

Eligibility:

• Companies in rural areas must create 20 new jobs, and those in urban centers must create 50. Caldwell is an urban community
• New jobs must be full-time (30 hours or more) and pay equal to or greater than the average county wage (Canyon County average county wage is $35,809 as of 2019)
• Company must prove its stability and a significant economic impact to the community and Idaho
• Company must prove that the incentive is a critical factor to its decision to relocate or expand

Responsible Agency: Idaho Dept. of Commerce

Contact: Susan Davidson

Email: susan.davidson@commerce.idaho.gov

Phone: 208-287-0783

Idaho Business Advantage

If a business invests at least $500,000 in new facilities and creates 10 or more jobs with salaries averaging $40,000+ a year with benefits, that business may qualify for the Business Advantage Incentive Package which can include a variety of tax credits, sales tax rebates, and property tax exemptions.

Responsible Agency:  Idaho Dept. of Commerce

Contact Susan Davidson

Email: susan.davidson@commerce.idaho.gov

Phone: 208-287-0783

Investment Tax Credit

A 3% credit against Idaho corporate income tax for qualifying new investment in depreciable, tangible personal property (machinery and equipment) used in Idaho.

Responsible Agency:  Idaho Department of Commerce

Contact Susan Davidson

Email: susan.davidson@commerce.idaho.gov

Phone: 208-287-0783

Workforce Development Training Fund

Businesses can receive up to $3,000 in cash reimbursements for the training of full-time, new employees or for helping retain employees facing permanent layoff.

Responsible Agency: Idaho Workforce Development Council

Contact: Wendi Secrist

Email: wendi.secrist@wdc.idaho.gov

Phone: 208-488-7561