Stretching from Boundary County to Bear County, more than a quarter of Idaho’s population lives rurally. 

Only 12 of Idaho’s 44 counties are classified as urban and hold the vast majority of Idaho’s population, leaving rural counties with small tax bases, and hours-long trips to the closest urban area.  

Over several years, the Idaho state government has rolled out several tax incentives designed to stimulate commerce, aid the local tax-paying base and improve the profitability of small businesses in rural areas.

The cornerstone of these efforts is the Tax Reimbursement Incentive program, sometimes known as the TRI.

“Idaho’s Tax Incentive Reimbursement Incentive, or TRI, helps support rural employers,” said Jake Reynolds, Idaho commerce business development and operations manager. “It offers eligible businesses up to 30% percent tax credit on income, payroll, and sales taxes for up to 15 years, as long as they meet job creation and wage requirements.” 

Of more than 100 approved TRI projects across the state, more than half are in rural areas, according to Reynolds. 

The program adjusts eligibility standards to fit rural realities. In communities with fewer than 25,000 residents, businesses can qualify by creating 20 new full-time jobs, compared to the 50 jobs required for qualification in urban areas. 

“Rural projects can qualify by creating 20 full-time jobs, compared to 50 in urban areas,” said Reynolds. “Those full-time employees must work 30 hours or more every week , and earn at or above the county average wage, ensuring quality local employment. These tailored criteria make TRI more accessible and impactful for small, rural communities.” 

The incentives are aimed at helping diversify economies in rural Idaho by strengthening sectors such as manufacturing and agriculture, while also providing gainful and stable employment that helps retain locals to their areas. 

Beyond direct benefits, the program creates noticeable ripple effects in the surrounding areas.

“When a major company expands or builds in Idaho, surrounding communities are often impacted,” Reynolds said. “In south-central Idaho, for example, communities like Burley, Jerome and Rupert have all benefitted from the activity generated by Chobani’s major operations in Twin Falls.”

Idaho Commerce says that the TRI and other related programs are intentionally designed with rural success in mind. By lowering job-creation thresholds and emphasizing competitive wages, the incentives help translate business growth into lasting local prosperity. 

“Mountain Home has seen growth tied to Micron’s continued development in the Treasure Valley, as people look for services and housing near Boise. Larger investments tend to naturally spread opportunity to nearby rural areas.” said Reynolds.