Business incentive bill clears House tax committee hurdle

BOISE - The House tax committee on Friday forwarded to the House floor a bill containing $3 million tax break for business expansion in Idaho.

"You have a winner here," former Parma mayor Margaret Watson told the House Revenue and Taxation Committee, referring to the Idaho Department of Commerce-driven legislation.

Watson added: "It finally gives us a fly on the tip of a fishing pole."

House Bill 546, promoted as an incentive to bring new jobs and dollars to Idaho's economy, was again called "a game changer," by Jeff Sayer, the director at IDC.

Rep. Grant Burgoyne, D-Boise, said it's much needed in Idaho.

"The fact is, we have to bring Idaho jobs today," Burgoyne said. "I'm optimistic that it will give us what we need, and we can make some progress."

Wayne Hoffman, president of the Idaho Freedom Foundation, didn't share that opinion, saying smaller businesses that may double their workforce would not benefit.

"I think this is really, really bad tax policy," Hoffman said. "It is pure corporate welfare and economic tinkering, and I hate the idea that the state of Idaho is deciding what constitutes meaningful types of projects, or minimum jobs. It just really, really bothers me."

Hoffman added: "If you really want to help, cut your taxes, or eliminate some taxes."

Rep. Lenore Barrett, R-Challis, was the only House tax committee member to vote against HB546.

"Yes, this is very attractive," Barrett said. "That's another word that I don't really like, because, I just keep thinking of the old saw, and I know you've all heard this. The guy goes in the bar and he sees a beautiful woman, buys her a drink, takes her home to pay for his drink, and the first thing she does is take off her girdle, take out her false teeth, and leave her wig on the bedpost."

Businesses expanding in Chubbuck, Ammon, Garden City, and Eagle would have to create at least 50 new jobs instead of a maximum of 20 to qualify for a tax rebate under the terms of the legislation, Sayer said. Other than those four cities - which border on larger metropolitan areas - businesses expanding in rural cities with populations under 25,000 would be required to create 20 jobs to qualify for the rebate on income earned.

Projects in the four cities mentioned and cities with populations above 25,000 would have to create 50 or more jobs to qualify for the tax rebate.