Form 83 Idaho Small Employer Investment Tax Credit

1 Amount of qualified investments acquired during the tax year Include a complete list of qualified 1 Credit for tax paid to other states 1 Percentage of Use Method Multiply the investment in each asset by a fraction where Idaho use is the numerator and total use is the denominator Usage can be measured by machine hours mileage or any other method that accurately reflects the usage 10 Credit shared with unitary affiliates 10 11 Total credit available subject to limitations Add lines 4 through 7 and subtract lines 8 through 10 11 12 Enter the Idaho income tax from your tax return 12 13 Credit for tax paid to other states 13 14 Credit for contributions to Idaho educational entities 14 15 Investment tax credit 15 16 Credit for contributions to Idaho youth and rehabilitation facilities 16 17 Credit for production equipment using postconsumer waste 17 18 Promoter sponsored event credit 18 19 Credit for Idaho research activities 19 2 Amount of investments for which you claimed the property tax exemption Include Form 49E 2 2 Credit for contributions to Idaho educational entities 2 Property Factor Numerator Method Use the amount included in the Idaho property numerator for each property 20 Broadband equipment investment credit 20 21 Incentive investment tax credit 21 22 Add lines 13 through 21 22 23 Tax available after other credits Subtract line 22 from line 12 23 24 62 5% of tax Multiply line 12 by 62 5% 24 25 Credit allowable subject to limitation of tax Enter the smaller of: 26 Total credit allowed on current year tax return Enter the smallest amount 27 Total credit available subject to limitations Enter the amount from line 11 27 28 Credit allowed Enter the amount from line 26 28 29 Credit carryover to future years Subtract line 28 from line 27 Enter the amount here and 3 Investment tax credit 3 Subtract line 2 from line 1 This is the amount of qualified investments on which you may earn 4 Credit earned Multiply line 3 by 3 75% 4 4 Credit for contributions to Idaho youth and rehabilitation facilities 5 Credit for production equipment using postconsumer waste 5 Pass through share of credit from a partnership S corporation estate or trust 5 6 Credit received through unitary sharing Include a schedule 6 6 Promoter sponsored event credit 7 Carryover of small employer investment tax credit from prior years 7 7 Credit for Idaho research activities 8 Broadband equipment investment credit 8 Carryover eliminated due to recapture in 2011 Enter the amount from Form 83R line 13 9 Credit distributed to partners shareholders or beneficiaries 9 9 Incentive investment tax credit Name(s) as shown on return 08 02 11 08 02 11 1 Capital investment in new plant and building facilities of at least $500 000 2 Increased employment by at least 10 new employees who each earn at least $19 23 per hour and receive health benefits and 3 For new employment increases above the 10 new employees the average wages of the additional new employees is at least $15 50 per hour worked See the instructions for who is included in this calculation a the amount from line 11 or Also you must compute recapture if you claimed the SE ITC in an earlier year and fail to meet the tax incentive criteria you certified to on Idaho Form 89SE b $750 000 25 Buildings and their structural components (this property may qualify for the small employer real property improvement tax credit see Idaho Form 84) Carryover Periods Corporations claiming the SE ITC must provide a calculation of the credit earned and used by each member of the combined group The schedule must clearly identify shared credit and the computation of any credit carryovers CREDIT AVAILABLE SUBJECT TO LIMITATION CREDIT CARRYOVER CREDIT LIMITATIONS EFO00011 EFO00011p2 EFO00011p3 Election to Claim Two Year Property Tax Exemption and Forego Investment Tax Credit Elevators and escalators File Form 83R if you claimed the SE ITC File Form 49R if you claimed the ITC or Form 49ER if you claimed the property tax exemption Form 83 is used to calculate the Idaho small employer investment tax credit (SE ITC) earned or allowed Each member of a unitary group of corporations that earns or is allowed the credit must complete a separate Form 83 Form 83 Page 2 from lines 23 24 or 25 here and on Form 44 Part I line 7 26 GENERAL INSTRUCTIONS Horses Idaho Exceptions to IRC Sections 46 and 48 Idaho law specifically excludes the following property from qualifying for the Idaho ITC: IDAHO SMALL EMPLOYER If property is used both in and outside Idaho compute the qualified investment for all such property using one of the following methods: If you are a qualifying taxpayer property that would qualify for the ITC qualifies for the SE ITC The property does not have to be located at the project site to qualify However it does have to be placed in service during the project period If you have not filed Form 89SE with the Tax Commission or have been notified that you do not qualify for the small employer incentives you do not qualify for this credit Complete Form 49 for any investments that qualify for the regular investment tax credit If you placed personal property in service that qualifies for the ITC you may elect to exempt this property from your property tax You are not eligible for the election if your rate of charge or rate of return is regulated or limited by federal or state law The exemption from the property tax is for two years After the two years you must pay any applicable property tax You cannot claim the SE ITC for any property that you elect to exempt from property tax Include Form 83R 8 Instructions are for lines not fully explained on the form Instructions for Idaho Form 83 INVESTMENT TAX CREDIT investments 1 Line 1 Include a list of all property you acquired during the tax year that qualifies for the SE ITC The list should identify what each item of property is your basis in the item and the date placed in service Do not include any property placed in service before the date the project period began Line 10 If you are a member of a unitary group enter the amount of credit you earned that you elect to share with other members of your unitary group Before you can share your credit you must use the credit up to the allowable limitation of your tax liability Line 12 Enter the amount of your Idaho income tax This is the computed tax before adding the permanent building fund tax or any other taxes or subtracting any credits Line 13 Enter the credit for tax paid to other states from Form 39R or Form 39NR This credit is available only to individuals estates and trusts Line 14 Enter the credit for contributions to Idaho educational entities from the appropriate Idaho income tax return Line 15 Enter the investment tax credit allowed from Form 49 Part II line 8 Line 16 Enter the credit for contributions to Idaho youth and rehabilitation facilities from the appropriate Idaho income tax return Line 17 Enter the credit for production equipment using post consumer waste from the appropriate Idaho income tax return Line 18 Enter the promoter sponsored event credit from the appropriate Idaho income tax return Line 19 Enter the credit allowed for Idaho research activities from Form 67 line 29 Line 2 Enter the amount of qualified investments for which you claimed the property tax exemption This exemption is allowed in lieu of earning the SE ITC Include applicable Form(s) 49E Line 20 Enter the amount allowed for the broadband equipment investment tax credit from Form 68 line 18 Line 21 Enter the credit allowed for the incentive investment tax credit from Form 69 line 16 Line 26 Enter the smallest amount from lines 23 24 or 25 on line 26 Enter this amount on Form 44 Part I line 7 in the Credit Allowed column line 29 Line 29 The amount of credit available that exceeds the total credit allowed on the current year tax return may be carried forward up to 14 tax years Enter this amount on Form 44 Line 5 Enter the amount of the SE ITC that is being passed through by partnerships S corporations estates or trusts in which you have an interest This amount is reported on Form ID K 1 Part D line 8 Line 6 If you are a member of a unitary group enter the amount of credit you received from another member of the unitary group Line 7 Enter the carryover computed on your 2010 Form 83 Line 9 If you are a partnership S corporation trust or estate enter the amount of credit that passed through to partners shareholders or beneficiaries Nonqualifying Property on Form 44 Part I line 7 29 Other tangible property property used as an integral part of manufacturing production extraction or furnishing transpor tation communications or utility services or research facili ties and bulk storage facilities used in connection with those businesses Part I line 7 in the Carryover column Petroleum storage facilities Property not used in Idaho and Property subject to 60 month amortization Property that does not qualify includes: Property that is either nondepreciable or has a useful life of fewer than three years Property that qualifies for the ITC generally follows the definition of qualified property found in the Internal Revenue Code (IRC) Sections 46 and 48 as in effect prior to 1986 The property must have a useful life of three years or more and be property for which you are allowed the deduction for depreciation or amortization in lieu of depreciation Qualifying property includes the following property used in a trade or business: Property Used Both In and Outside Idaho Property used in lodging facilities that rent 50% or more of their lodging units for periods of 30 days or longer such as apartment houses or rental homes (Does not apply to hotels and motels that rent more than half their units for periods of less than 30 days ) Nonqualifying property includes property used in the living quarters lobby furniture office equipment and laundry and swimming pool facilities but excludes certain coin operated machines Qualified broadband equipment as approved by the Idaho Public Utilities Commission Qualified timber property QUALIFYING FOR THE CREDIT Qualifying Property Qualifying Taxpayers Recapture SE ITC that was earned but not used against tax may be carried forward for 14 tax years For purposes of the carryover period a short tax year counts as one tax year SE ITC: Single purpose agricultural or horticultural structures Social Security Number or EIN SPECIFIC INSTRUCTIONS Tangible personal property machinery and equipment The cost of property expensed under Section 179 IRC The election is available if you had negative Idaho taxable income in the second preceding tax year from the tax year in which the property was placed in service Negative Idaho taxable income must have been computed without regard to any carryover or carryback of net operating losses The election must be made on Form 49E and filed with the operator's statement or personal property declaration A copy of the election form must be attached to the original income tax return(s) for the tax year(s) in which the property was placed in service The following credits must be applied to the tax before the The portion of property used for personal use The SE ITC is allowed for property that qualifies for the 3% investment tax credit (ITC) If you are claiming the SE ITC you may not also claim the ITC on the same property The SE ITC is limited to the smaller of $750 000 62 5% of your tax liability or the Idaho income tax after allowing all other tax credits that may be claimed before the SE ITC the small employer investment tax credit 3 To qualify for the SE ITC you must certify by filing Form 89SE that you will meet the tax incentive criteria at the project site during the project period If you have not filed Form 89SE with the Tax Commission or you have been notified that you do not qualify for the small employer incentives you may not claim this credit If you do not qualify for the SE ITC you may be eligible to claim the ITC See Idaho Form 49 Used property in excess of $150 000 Used property not acquired by purchase Vehicles under 8 000 pounds gross weight You may claim the small employer investment tax credit if you have certified on Form 89SE that you will meet the following tax incentive criteria at the project site during the project period: You must compute recapture if you sell or otherwise dispose of the property or it ceases to qualify for the SE ITC before it has been in service for five full years