Tax Incentive Bill Fails In Legislature
An effort to boost Idaho’s struggling economy by giving businesses tax incentives to create new jobs has failed in the state Legislature. The legislation died Tuesday in a Senate committee over lawmaker concerns about its fiscal impact. The bill would have allowed an employer to receive a portion of their new employee’s income taxes in the form of a 4 percent refundable tax credit of a new employee’s gross wage. To receive the credit, companies would have had to hire new people earning at least $12 an hour with benefits. The Idaho Chamber Alliance contends the money returned to companies would go into hiring more workers and growing their businesses. But the bill died over lawmaker concerns it could eventually cost the state millions in lost revenues.