County grants Quest tax exemptions
Bonner County and Quest Aircraft Co. entered into a tax exemption agreement on Tuesday. Pictured, from left, are Quest Senior Vice President of Operations Jason Eddy, Bonner County Economic Development Corp. Executive Director Paul Kusche, Quest Controller Will Crook, Quest Director of Customer Service Dave Schuck, Quest CFO Susan Jordan and Bonner County commissioners Glen Bailey and Todd Sudick. —Photo by JIM McKIERNAN
SANDPOINT — Bonner County entered into an agreement Tuesday with Quest to grant tax exemptions to the aircraft manufacturer in recognition of the company’s $3.1 million expansion plan.
“Quest is the first business that has taken advantage of that and we’re pleased to see it,” said county Commissioner Glen Bailey.
Idaho Code allows counties to declare all or partial market value exempt from taxation for up to five years if the business improvements meet or exceed $3 million. Bonner County adopted the code as its policy in April.
Quest, which manufactures short-takeoff-and-landing airplanes, announced earlier this month it had completed the initial phase of the expansion. The company broke ground on the expansion last fall, which will ultimately add 75,000 square feet to Quest’s manufacturing facility at Sandpoint Airport.
The expansion is expected to double Quest’s manufacturing capability.
“We like to see private investment in businesses in our area. It leads to the creation of more jobs, more permanent jobs and better-paying jobs. We fully support businesses of taking advantage of this,” said Bailey.
Under the exemption agreement, Quest is being given a property tax credit of 75 percent of its investment in the buildings and its structural components. Moreover, Quest will be given a property tax credit for equipment and machinery associated with the expansion. The company will receive 100-percent exemptions on equipment in 2016-17, a 75-percent exemption in 2018 and 50-percent exemptions in 2019-20.
Paul Kusche, executive director of the Bonner County Economic Corporation, brought the exemption code to the board’s attention.
“He has been researching ways we can encourage businesses to come to Bonner County and for the businesses that are here to expand,” Bailey said.
Bailey, who holds a seat on the EDC board, said he would like to see Idaho lawmakers lower the $3 million threshold that triggers tax exemption eligibility so more businesses in Bonner County can utilize it.
“We’d like to see the threshold reduced to about $500,000 or so, which a lot of these smaller entrepreneur business probably could meet that threshold,” he said.