Back bill for jobs

Idaho is about to be better positioned to compete in the ferocious market for good jobs.

Despite "no" votes from local Rep. Kathy Sims and Sen. Steve Vick, both chambers of the Legislature overwhelmingly supported House Bill 546, called the Idaho Reimbursement Incentive Act, before it was slightly amended Tuesday. The amended version of the bill - one of the most substantive steps of the entire 2014 session - is expected to be voted on again today.

We say: Make it so.

With all but 11 of 105 legislators initially approving it, the act is clearly seen as a vital weapon Idaho needs to attract good jobs and, more importantly, to grow them with companies that are already here.

The Idaho Reimbursement Incentive Act is modeled after a similar version that Utah's been using effectively to compete against states like Idaho. It's not a taxpayer-financed handout that can disappear like candy in a child's hand. Nor is it a lure that will snag a company for a year or two before a better-looking lure comes their way and entices them to move again. The partial tax rebate is an ethical way to reward job creation by giving back to companies some of the money they've already paid the state - but only after they've paid those taxes first.

Here's how the IRIA works:

Whether the company is moving in or already is here and wants to expand, the act offers a refundable tax credit of up to 30 percent of their state corporate income taxes, sales taxes and payroll taxes, for up to 15 years. It applies only to new jobs that pay at least the average annual wage of the county where those jobs are located, creating a buffer against low-wage jobs. Unlike Utah's program, Idaho's would apply to retail businesses, too.

The program is available only to businesses creating 20 or more new jobs in rural areas, and 50 or more jobs in urban areas. Coeur d'Alene would be considered an urban area. The other communities in Kootenai County would be rural.

Nobody is suggesting the legislation is perfect. It won't eradicate unemployment, nor will it transform the Gem State from the lowest paying state in the union to one of the highest. But every economic development proponent we've talked to agrees that the Idaho Reimbursement Incentive Act will bring the state up to an equal footing in competition with neighboring states for good jobs. We're even more excited about providing incentives to good, loyal companies that are already here and need just a little more encouragement to expand significantly - again, returning to them a portion of the taxes they will already have paid.

If all goes well as expected today in legislative action, the Idaho Reimbursement Incentive Act will become law. And when hundreds of local business people and other economic development advocates gather next week at The Resort for the Jobs Plus annual meeting, they'll have one more reason to celebrate.