Incentive for small employers advances

BOISE – The Idaho House voted Friday to extend tax breaks to small employers who create at least 10 well-paid jobs at newly built or expanded plants in Idaho.

The measure changes a law passed a year ago that limited the incentives to small employers that build “headquarters or administrative offices” in Idaho. The new version expands the definition of new construction to include “buildings or plants” where people work.

The bill passed 63-3 and now goes to the Senate.

Should it win favor, it would give a jobs credit, tax credits and a sales tax rebate worth a combined $17,100 annually to small businesses that pay 10 new employees at least $40,000 each to work at new facilities where construction costs total a minimum $500,000.

Sponsor Rep. Mike Moyle, R-Star, said it would help attract business investment. Last year’s bill was designed in part to give small employers tax breaks similar to those in a “corporate headquarters” bill aimed at encouraging large companies such as Albertson’s Inc. to relocate or expand in Idaho.

The incentives run through 2010.