Idaho · Investment · ID-ITC-001
Investment Tax Credit
Publication revised September 24, 2026. Sourcebook page 94.
Credit amount / calculation
3% of qualifying investment, subject to current use limits and carryforward.
Business fit and eligible activity
Broad statutory credit for qualified Idaho investment, including many depreciable manufacturing assets. Qualified investment or approved project activity; confirm eligible property, location and taxpayer type.
Eligibility and practical use
This is the kind of credit that can matter to a capital-intensive mill even when the project adds only a handful of jobs. Logging equipment deserves a separate eligibility check because mobile harvesting property may be treated differently from machinery used at a manufacturing site.
Illustrative business benefit
A sawmill invests $1.50 million in qualifying production machinery. At 3%, the nominal credit is $45,000 before annual caps, tax-liability limits, carryforward rules, or negotiated adjustments. The company should isolate eligible machinery from buildings, vehicles, land, and other costs that the statute does not treat the same way.
Timing / first action
Tax-year claim: document the eligible expense, hire or placed-in-service date and meet any separate certification deadline. Get a written answer on which property is qualified - especially buildings, installation, software, used equipment, vehicles, and mobile machinery.
Official sources
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