With Washington state clearly in its crosshairs, as well as California, Idaho recently introduced a series of aggressive new tax incentives for large and small companies willing to relocate headquarters or major operations to the Evergreen State’s neighbor to the east.

As Washington’s legislature continues to pile on tax and regulatory burdens as it did in the recently finished session of the legislature, Idaho’s significantly more friendly business climate, lower taxes and common sense growth management policies have already enticed numerous Spokane-area firms to relocate just across the border to the Post Falls and Coeur D’ Alene areas.

Through 2009, Idaho is offering significant reductions in business income, sales and property taxes for companies meeting the requirements of the Idaho Corporate Advantage and Idaho Business Advantage incentive packages.

“These incentives add to Idaho’s reputation as a great place to do business,” Idaho Governor Dirk Kempthorne said. “Idaho companies enjoy a favorable business climate, a skilled workforce, an affordable cost of living and a quality of life few states can match.”

The program provides incentives that could eliminate annual state tax liability for a number of years. To qualify, companies must create at least 500 jobs averaging $60,000 a year plus benefits and invest a minimum of $50 million in headquarters or administrative buildings.

The Idaho Business Advantage is available for smaller companies that can’t meet that program’s requirements. To qualify, companies must create at least 10 new jobs with a minimum starting salary of $40,000 a year plus benefits and invest a minimum of $500,000 in new headquarters or administrative buildings.

Several Fortune 500 companies already call Idaho home including Albertsons, Micron Technology and Washington Group International. Other Idaho-based companies include Boise Cascade, AMI Semiconductor, IdaCorp, Coldwater Creek, and J.R. Simplot Co. Also, legendary Buck Knives moved its corporate headquarters from El Cajon, Calif., to Post Falls last year.

All Idaho companies can take advantage of existing tax breaks including a sales tax exemption on purchases used in business production, pollution control, industrial fuels and raw materials and goods purchased for sale outside Idaho. Investment tax credits over the standard 3 percent for Idaho research and broadband equipment are also available.

Idaho enacted new sales tax exemptions for equipment used for research and development and alternative energy. Idaho also capped business property taxes once the value reaches $800 million; employment reaches 1,500 workers and the company makes a minimum of $25 million in annual capital investments.

Idaho is routinely touted as a top place to live and do business, and the state’s business operating costs are some of the lowest in the nation.

Learn more about Idaho’s business incentive packages at cl.idaho.gov.