Idaho’s stable and diverse economy supports industries such as electronics manufacturing, food processing, wood and paper products, mining, and tourism. The five federally recognized tribes that reside in Idaho also make a significant contribution to the state’s economy.
What are the reasons for doing business in Idaho?
In addition to low operating costs, companies in Idaho can benefit from a variety of tax incentives, property tax exemptions and grants programs. Idaho is also known for having a business regulatory environment that is less burdensome than in other states.
What is the cost of doing business in Idaho?
Idaho has an attractive tax climate. In 2023, Idaho reduced both its corporate and top personal income tax rate to 5.8%. There is a 6% state sales and use tax; jurisdictions may charge an additional tax at the local level.
Businesses can also expect to pay less when it comes to labor and utilities, although housing prices have been on the rise due to rapid population growth.
How is Idaho’s infrastructure?
Idaho’s growing population, rugged terrain, and extreme weather events present some challenges to the state’s transportation infrastructure. In terms of broadband access, rural Idaho has yet to catch up to the more populated areas. Plus, technology-heavy activities (such as data centers and cryptocurrency mining facilities) have revealed a need to improve the energy infrastructure. CNBC gave Idaho’s infrastructure a D in its latest Top States for Business report.
What are other challenges of doing business in Idaho?
A tight labor market is one challenge faced by many businesses in Idaho. In its last economic development report, the Economic Development Districts of Idaho (EDDI) recommended implementing skills development and re-training, as well as the expansion of STEM careers, in order to build up the talent pool.
Companies may also find it difficult to attract and retain talent due to restrictive laws concerning reproductive rights.