As a business law firm, we offer guidance on structuring businesses to maximize tax efficiency. Local and federal tax incentives can provide substantial savings for business owners while keeping them aligned with evolving tax regulations.
With year-end planning underway, it’s an ideal time to optimize for the 2025 tax season. Below, we’ve highlighted new rules and tax incentives of interest to Idaho and Washington businesses—particularly those in manufacturing, real estate, healthcare, and small business sectors.
Manufacturing
The IRS and Department of Treasury recently finalized a new rule for the “Advanced Manufacturing Production Credit” (Section 45X of the Internal Revenue Code), offering significant tax benefits for companies engaged in the production of “eligible components,” including certain solar energy components, wind energy components, inverters, qualifying battery components, and applicable critical minerals.
Notably, this rule allows eligible taxpayers to claim credits for costs associated with extracting and producing critical minerals and electrode-active materials. (Source: Federal Register)
Real Estate
Idaho – Investment Tax Credit
Idaho offers a 3% investment tax credit on new depreciable, tangible personal property, including machinery and equipment used in the state. (Source: IdahoCommerce.gov)
Washington – Sales and Use Tax Deferral Program
Businesses engaged in manufacturing and other specified activities may be eligible to apply for a sales and use tax deferral. (Source: WA Dept of Revenue)
Healthcare
Idaho – Idaho Business Advantage
Businesses, including healthcare businesses, that invest at least $500,000 in new facilities and create at least 10 jobs paying at least $40,000 annually with benefits may qualify for incentives, including tax credits, sales tax rebates, and property tax exemptions. The average wage of any additional new employees during the project period must be $15.50/hr plus benefits. (Source: IdahoCommerce.gov)
Washington – B&O Tax Credit for Employee-Owned Business Conversions
Healthcare entities transitioning to an employee ownership structure can claim a credit against their Business & Occupation Tax based on the costs incurred in converting to an employee-owned business. (Source: withum)
Small Businesses
Idaho – Work Opportunity Tax Credit
Employers can claim credit for hiring individuals from targeted groups who face significant barriers to employment. (Source: IdahoBusiness.gov)
Washington – Small Business Tax Credit
Applicable to businesses with gross income below a certain threshold, this credit reduces the Business & Occupation Tax liability. (Source: WA Dept of Revenue)
As tax season approaches, understanding available incentives and new regulations can make a meaningful impact on your bottom line. Our team is here to help you navigate these changes to ensure your business stays compliant and tax-efficient in 2025. Reach out to learn how we can support your tax planning efforts.