Idaho legislators reconsidering Micron tax breaks

Associated Press
Published: Tuesday, July 17, 2007 12:07 a.m. MDT
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BOISE — Some Idaho lawmakers are questioning tax cuts and other incentives given to Micron Technology Inc. in the wake of that company's recent decision to cut hundreds of jobs from its Boise facility.

"Even with the tax incentives, we didn't get the jobs," Rep. Dell Raybould, R-Rexburg, a member of the House tax committee, told the Idaho Statesman. "I'm very sympathetic to business, and Micron's very important, but we can't be putting all our chips on one industry that's going to have its ups and downs when its stability is based on world competition."

A 14-member interim committee begins meeting Aug. 1 to study billions of dollars worth of tax breaks, including those to Micron, and then make a report to the 2008 Legislature. Some lawmakers say they want to eliminate some exemptions to lower overall tax rates.

Micron reported it lost $225 million in the third quarter that ended May 31, and as a result has to cut a reported 1,100 workers from its Boise facility.

Besides tax breaks, the state has also tried to entice Micron with an engineering school at Boise State University, and the building of Isaac's Canyon highway interchange in Boise near Micron's facility in 1997.

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Lawmakers have not forgotten when the computer memory chipmaker's chief executive, Steve Appleton, suggested a $1 billion plant could be built in Boise. The result was a sales-tax exemption on research and development, and Micron's valuation was capped at $800 million for property tax purposes. That cost other taxpayers an estimated $3 million.

But Micron instead chose to build a $3 billion plant in Singapore, announcing the joint venture in 2006. The company opened its first factory in China in March, saving more money on low wages than Idaho lawmakers offered in incentives.

Rep. Scott Bedke, R-Oakley, said lawmakers might be interested in offering tax breaks for bioscience and technology companies to try and get new companies started in the state by former Micron workers.

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