Idaho broadband equipment investment credit - Idaho State Tax 2025

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3% Investment Tax Credit An investment tax credit on all new depreciable, tangible, personal property (machinery and equipment) used in Idaho.
Idaho research and development tax credit is equivalent to 5% of QREs over the base amount. You get the base amount by multiplying the fixed base percentage by average annual gross receipts from four prior years.
Who qualifies for the RD credit? Any company engaged in activities to develop or improve products, processes, software, formulas, techniques or inventions in a way that required some level of technical experimentation to determine the most accurate and appropriate design may qualify for the RD credit.
Seven statutory sources of revenue are dedicated to the Permanent Building Fund: 1) Every person and corporation required to file a tax return a return pays a tax of ten dollars (Section 63-3082, Idaho Code), which is credited to the Permanent Building Fund (Section 57-1110, Idaho Code).
Break-even companies (pre-April 2024 SME scheme): Youll get 8.6% of your RD expenditure back. Loss-making companies (pre-April 2024 SME scheme): You can get up to 18.6% back, or even 27% if youre an RD-intensive SME.

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Under current law, most Idahoans receive a grocery tax credit of $120 per year, while seniors receive a grocery tax credit of $140 per year. If the bill becomes law, all Idahoans would receive the same $155 credit.
You can claim this credit on your Idaho tax form whether or not you itemize deductions. The credit is available to all Idaho taxpayers. Tax credits reduce your tax liability dollar for dollar. The state tax credit is up to 50% or $1,000 of your donation for married couples ($500 for individuals).
Calculated in the same method as the federal regular credit, the Idaho credit equals 5% of the QREs in excess of the base amount (Fixed Base Percentage x 4 Prior Years Average Annual Gross Receipts). Learn more about Idahos RD Tax Credit law or claim Idaho state RD credits here.

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