Instructions For Idaho Form 49e

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EIN00031
Instructions for Idaho Form 49E
10-17-11
GENERAL INFORMATION
service, you do not qualify for the exemption.
Form 49E is used to elect an exemption from property tax for
To determine whether you had negative Idaho taxable income
personal property instead of earning the Idaho investment tax
in the second preceding income tax year, you must go back
credit (ITC) on the property. This exemption is referred to on
two income tax years from the income tax year in which
Form 49E and in these instructions as the qualified invest­
you placed the property in service. For example, if you file
ment exemption (QIE).
income tax returns on a calendar year basis, and you placed
property in service during calendar year 2011, you must have
The QIE is allowed for the two calendar years that follow the
had negative Idaho taxable income for the calendar year
end of the calendar year in which the qualifying property was
2009 to qualify for the election. A short tax year counts as
placed in service. For example, for property placed in service
one income tax year.
during calendar year 2011, the QIE is available for calendar
years 2012 and 2013.
If you file income tax returns on a fiscal year­end basis, and
in one calendar year you placed property in service in two
If you elect the QIE, you cannot earn the ITC or the biofuel
different fiscal years, you will need to determine separately
infrastructure investment tax credit for Idaho income tax
for each fiscal year whether you had negative Idaho taxable
purposes on that property. You cannot change your election
income in the second preceding income tax year from the tax
to claim the QIE on property once you have made it. If you
year the property was placed in service.
sell or otherwise dispose of an item of property for which you
claimed the QIE, or if the property ceases to qualify during
For example, you file income tax returns for the fiscal year
the five­year period starting with the date the property was
ending August 31. Assuming you had no short tax years,
placed in service, you must compute recapture. Use Form
assets you placed in service from:
49ER to calculate the recapture.
January 1, 2011 through August 31, 2011, are assets
You must include Form 49E with your operator’s statement(s)
placed in service during fiscal year ended August 31,
or personal property declaration(s) filed for 2012. You must
2011. You must have had negative Idaho taxable income
also include a copy of this form with your original Idaho
for the fiscal year ended August 31, 2009, to elect the QIE
income tax return(s) for the income tax year(s) in which
on any of these assets.
the prop erty was placed in service. If you submit multiple
September 1, 2011 through December 31, 2011, are
Forms 49E to one or more assessors, you must include a
assets placed in service during fiscal year ended August
copy of each Form 49E with the applicable year’s income tax
31, 2012. You must have had negative Idaho taxable
return(s).
income for the fiscal year ended August 31, 2010, to elect
the QIE on any of these assets.
QuALIFyING TAxpAyERs
To qualify for the QIE, you must:
If you are part of a unitary group of corporations filing a
Not have your rate of charge or rate of return regulated or
combined report for Idaho income tax purposes, you must
limited by federal or state law, and
look to your Idaho taxable income, as computed according
Have had negative Idaho taxable income in the second
to Idaho Code section 63-3027, to determine whether you
preceding income tax year from the income tax year in
had nega tive Idaho taxable income in the second preceding
which you placed the property in service.
tax year. This will be computed by applying your Idaho
apportion ment factor to the combined income or loss for that
Negative Idaho taxable income is computed for a year before
year and including your income or loss allocated to Idaho.
applying any net operating losses from other years that you
may be able to carry forward or carry back to that year. If you
The following table provides examples of determining the
were not doing business in Idaho in the second preceding
second preceding income tax year. The second and fourth
income tax year from the year you placed the property in
examples show how you determine the second preceding
TAx yEAR pROpERTy
FIRsT pRECEDING
sECOND pRECEDING
pLACED IN sERVICE
TAx yEAR
TAx yEAR
Calendar year 2011
Calendar year 2010
Calendar year 2009
Calendar year 2011
Calendar year 2010
Short tax year beginning Feb. 1, 2009
and ending Dec. 31, 2009
Fiscal year beginning Sept. 1, 2010
Fiscal year beginning Sept. 1, 2009
Fiscal year beginning Sept. 1, 2008
and ending Aug. 31, 2011
and ending Aug. 31, 2010
and ending Aug. 31, 2009
Fiscal year beginning Sept. 1, 2010
Short tax year beginning Jan. 1, 2010
Calendar year 2009
and ending Aug. 31, 2011
and ending Aug. 31, 2010

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