HB 546, state Commerce Director Jeff Sayer’s “Reimbursement Incentive Act,” has passed the House on a resounding 63-5 vote and is headed to the Senate side.  “It’s an economic development tool,” said House Majority Leader Mike Moyle, R-Star. Rep. Robert Anderst, R-Nampa, said, “Whether we like it or not, tax incentives have become a critical component to business growth and recruitment. … Post-performance incentives like this one are simply less risky than others.”

Patterned after a Utah law, the bill would allow the state to consider rebating up to 30 percent of a company’s corporate income tax, sales tax and payroll tax if it brings in certain numbers of high-paying new jobs. The credit would be available to existing as well as new companies, and projects would qualify only if they bring a minimum of 20 new jobs to a rural area or 50 to an urban area; and if the new jobs pay higher than the typical wage in the county.

House Minority Leader John Rusche, D-Lewiston, said, “I’m a co-sponsor and I favor this bill. This has been a bill that’s been worked on for a long time. It started out as a value-added tax credit for agricultural products industries. I think it’s been changed significantly and beneficially to be a rebate rather than a tax deduction.” The only “no” votes came from Reps. McMillan, Barrett, Sims, Harris and Shepherd.