Nampa Development Incentives
Idaho offers a variety of programs to assist new and expanding companies
Nampa Development Corporation Incentives
Downtown and Boulevard Area
NDC has consistently and strategically invested in downtown, resulting in the construction of a new public safety building, parking structure, public square, art and street beautification. Opportunities for mixed-use development, including the construction of a new library, will further redefine Nampa’s vibrant downtown.
Single tenant retail or service sector investment in a new or existing structure adding value of $500,000 or more
NDC Investment:
• Total incentive not to exceed 200% of first year increment value
• Up-front investment of building permit and impact fees, not to exceed $10,000
• Developer reimbursed expenses may include expenditures such as right-of-way, parking development and infrastructure improvements*
Developer Reimbursement would equal 50% of increment value up to 4 years.
Mixed-use multi tenant retail, residential or service sector investment in a new or existing structure adding value of $750,000 or more
NDC Investment:
• Total incentive not to exceed 250% of first year increment value
• Up-front investment of building permit and impact fees, not to exceed $20,000
• Developer reimbursed expenses may include expenditures such as right-of-way, parking development and infrastructure improvements*
Developer Reimbursement would equal 50% of increment value up to 5 years.
North Commercial and Industrial Development Areas
NDC has invested in infrastructure improvements and a revitalization strategy, ensuring North Nampa’s commercial and industrial property is ready for business. North Nampa’s open land, retail growth and proximity to the freeway provide great opportunities for growth.
Single tenant retail or service sector investment in a new or existing structure of $3,000,000 or more
NDC Investment:
• Total incentive not to exceed 200% of first year increment value
• Up-front investment of building permit and impact fees, not to exceed $10,000
• Developer reimbursed expenses may include expenditures such as right-of-way, parking development and infrastructure improvements*
Developer Reimbursement would equal 50% of increment value up to 4 years.
Mixed-use multi-tenant retail, office or medical investment in a new structure or existing structure of $3,000,000 or more
NDC Investment:
• Total incentive not to exceed 250% of first year increment value
• Up-front investment of building permit and impact fees, not to exceed $20,000.
• Developer reimbursed expenses may include expenditures such as right-of-way, parking development and infrastructure improvements*
Developer Reimbursement would equal 50% of increment value up to 5 years.
Example: The Ventana Saltzer St. Luke's project in North Nampa, completed in January 2012
Small, new manufacturing, distribution or data center facility structure with project value between $1,000,000 and $3,000,000
NDC Investment:
• Total incentive cost not to exceed 200% of first year increment value
• Up-front investment of building permit and impact fees, not to exceed $20,000
• Developer reimbursed expenses may include expenditures such as right-of-way, parking development and infrastructure improvements*
Developer Reimbursement would equal 50% of increment value up to 4 years.
Mid-size, new manufacturing, distribution or data center facility with project value or $3,000,000 to $25,000,000
Note: Manufacturing facilities may be eligible for up to five years exemption from taxation under Idaho Code, at the discretion of the County Commission
NDC Investment:
• Total incentive cost not to exceed 250% of first year increment value
• Up-front investment of building permit and impact fees, not to exceed $50,000
• Developer reimbursed expenses may include expenditures such as right-of-way, parking development and infrastructure improvements*
Developer Reimbursement would equal 50% of increment value up to 5 years.
Large-scale, new investment projects with project value exceeding $25,000,000
Note: manufacturing facilities may be eligible for up to five years exemption from taxation under Idaho Code, at the discretion of the County Commission
NDC Investment:
• Total investment and terms to be negotiated by NDC
• Up-front investment of building permit and impact fees, not to exceed $100,000
• Developer reimbursed expenses may include expenditures such as right-of-way, parking development and infrastructure improvements*
Project Examples
Downtown Project Example
One full city block redevelopment
| Demolition of existing structures | $100,000 |
| Utility relocation | $78,750 |
| Streetscape costs | $300,000 |
| Impact Fees & Building Permit | $10,000 |
| Total Incentive | $488,750 |
| Project Value | $11.5 Million |
| Estimated Downtown Levy Rate | 1.70% |
| One year increment: | $195,500.00 |
50% of increment paid to developer for duration of agreement: $97,750.00
In the first 5 years NDC would receive $977,500 increment for $488,750 invested.
North Nampa Industrial Development Example
| Infrastructure Improvement | $800,000 |
| Impact Fee & Building Permit | $50,000 |
| Total Incentive | $850,000 |
| Project Value | $20,000,000 |
| Estimated Levy Rate | 1.40% |
| One year increment | $280,000 |
50% of increment paid to developer for up to 5 years: $140,000
In the first 5 years NDC would receive $1,400,000 increment for $700,000 invested
*Infrastructure improvements may include:
- Demolition expenses on non historically significant properties
- Construction of streetscape
- Streetscape enhancement, curb, gutter & sidewalks
- Environmental remediation
- Off-street or structure parking
- Parking improvements
- Construction of or improvements to public roadways
- Construction of a rail spur
- Traffic control
- Landscaping right-of-way
- Construction or relocation of utilities
- Utility connection fees
- Sewer expansion and repair
- Water expansion and repair
- Storm drainage
- Electric and telecommunication facilities
- Public art, parks, trails or open space
State of Idaho Incentives
The Idaho Business Advantage
Businesses that invest a minimum $500,000 in new facilities and create at least 10 new jobs averaging $40,000 annually, plus benefits, may qualify for a variety of incentives.
Qualifying companies receive:
• An enhanced Investment Tax Credit of 3.75% up to $750,000 OR 62.5% of
tax liability in any one year
• A new jobs tax credit starting at $1,500 and climbing to $3,000 per job. Note: The Hire One Refundable Tax Credit can be used in lieu of the new jobs credit portion of the Business Advantage tax credit program.
• A 2.5% real property improvement tax credit up to $125,000 in any one year
along with a 25% rebate on sales tax paid on construction materials for the
new facilities
• Upon request of the company, the respective county commissioners may also authorize a full or partial property tax exemption
Property Tax Incentives
Property Tax Exemption
Businesses that invest in new manufacturing facilities may receive partial or full property tax exemptions from local county commissioners. To qualify, businesses need to invest a minimum of $3 million.
Large Business Property Tax Cap
Businesses that invest a minimum of $1 billion in capital improvements will receive a property tax exemption on all property in excess of $400 million in value per year.
Large Employer Property Tax Cap
Businesses that employ at least 1,500 people within an Idaho county may receive a property tax exemption on property values in excess of $800 million. To qualify, the business must make a yearly capital investment of at least $25 million within that county.
100% Property Tax Exemption
Business inventory and registered motor vehicles, vessels and aircraft are exempt from property tax.
Income Tax Incentives
Hire One Refundable Tax Credit
Businesses that hire new employees to fill newly created positions can receive a refundable income tax credit of up to 6% for the gross wages paid during the first 12 months of employment. The new employees must make at least $12 an hour in counties where the unemployment rate is 10 percent or higher and $15 an hour in counties with unemployment rates below 10 percent. The amount of refund is based on the employer’s unemployment insurance tax rating.
3% Investment Tax Credit
Businesses that make qualifying new investments1 may earn an income tax credit. This credit can offset up to 50 percent of a company’s state income tax liability and may be carried forward up to 14 years. Note: Qualifying property is new or used depreciable property. Idaho adopted the definition of qualifying property found in Internal Revenue Code (IRC) Sections 46(c) and 48 in effect prior to 1986. The depreciable life must be three years or more. Property not used in Idaho and vehicles under 8,000 pounds gross weight do not qualify.
5% Research Income Tax Credit
Businesses conducting basic and qualified research may earn an income tax credit of 5% that may be carried forward up to 14 years.
Sales Tax Incentives
Production Sales Tax Exemption
Businesses purchasing equipment and raw materials used directly in manufacturing, processing, mining, fabrication or logging operations; for clean rooms used in semiconductor and semiconductor equipment manufacturing; for any equipment
or material used in research and development activities; and processing
materials, substances or commodities for use as fuel for the production of energy may earn a sales tax exemption.
Up to $20 Million in Industrial Revenue Bonding
Tax-free bonds to finance manufacturing, processing, production and assembly projects are issued by a public corporation with the project or business serving as collateral. Taxable industrial revenue bonds also are available up to and exceeding $20 million
*Information provided by the Idaho Department of Commerce http://commerce.idaho.gov/business/
