Idaho Gov. Butch Otter has vetoed the only measure that lawmakers approved this year to eliminate an existing tax break. 

The measure sought to repeal a 5 percent tax credit for research activities by businesses.  However, Otter says it was “inconsistent” to repeal the break at the same time that Idaho’s enacting new tax relief for businesses from the property tax on business equipment. 

Repealing the research credit would have gained the state $1.4 million in tax revenue. 

The bill was one of just two that passed after a summer interim legislative committee recommended a sweeping review of dozens of Idaho’s existing tax breaks to see if they’re still appropriate - the House tax committee refused to consider reviewing most of them. 

Two other tax break repeals did clear the House committee this year.  One, for broadband investments, was pulled back by its sponsor before the full House could vote on it.  The other passed, but it was for a never-used incentive that had been designed to benefit the Albertson’s grocery store chain. 

(Spokesman-Review)