Bannock Development looks at new tax break incentive

One new piece of legislation will take effect across Idaho this summer, which aims to help attract more big companies into the Gem State.

In particular, Bannock County development officials say this sort of tax break will be a good incentive most big companies look for.

Bannock Development Corporation director John Regetz said this new change will offer a tax break to all big, commercial businesses if they want to expand into our local communities.

He said this means companies such as Idaho Central Credit Union, AllState, and Farm Bureau Insurance won’t have to pay a property tax while they are in the process of building their expansion.

He drew on the example of ON Semiconductor in Pocatello, which was approved earier this year for a $30 million investment to put toward new equipment in order to build its new production facility plant.

“Any advantage like that, where you could get to make capital investments that will make you more efficient and more effective will ensure that you will have that presence in your community,” Regetz said.

He added, these new provisions will not cost counties money in lost tax revenue since it only targets this new tax base.

“Because it’s based on tax revenues by the new investment, this is really self-funding in the end.”

Regetz said this new incentive will be a win-win for everybody if done properly and resources can match what a potential company is looking for.

Governor Butch Otter signed House Bill 0235 in April, which was put forth by the Revenue and Taxation Committee this past legislative session.

This is expected to go into effect starting July 1, 2017.