House Majority Leader Mike Moyle, R-Star, and House Minority Leader John Rusche, D-Lewiston, teamed up Tuesday on the House floor to push a bill they believe will spur economic growth in the state.
The bill would expand a tax credit already offered by the state which provides employers with $500 or $1,000 tax credits if they meet certain conditions. If the Moyle/Rusche plan is passed by the Senate, it would give employers $2,000 in tax credit per employee if the employee is hired at a wage of $35,000 or above. Employers would also be required to offer medical benefits in conjunction with the wage to receive the credit. Companies taking the credit would be allowed to claim it for up to five years, though only one time per employee. Current law allows three years for companies to claim the smaller tax credit. Workers would be required to remain with the company for nine months in order for the company to receive the credit.
The bill's fiscal note explains that it will have no direct impact on the state's general fund. Rusche explained in the committee hearing that the taxes paid by the employee will offset the cost of the credits. Rusche added that the Idaho State Tax Commission estimates that employee, if employed for nine months, would contribute approximately $2,100 to the state's treasury.
Members of the House passed the plan 68-2. It now heads to the Senate.
STAY CONNECTED with the latest news, research and opinions from the Gem State.