Form 89se - Certification For Idaho'S Small Employer Tax Incentives (Page 3 of 4) in pdf

EFO00044p3

02-13-13

Instructions for Idaho Form 89SE

GENERAL INSTRUCTIONS

New Employees

To qualify as a new employee for the tax incentive criteria, an

You must file Form 89SE prior to claiming any incentives allowed

employee must:

by the Idaho Small Employer Incentive Act. A copy of Form

89SE must be included with your Idaho income tax return for

● Be employed primarily at the project site by the taxpayer,

each tax year in which you are claiming or carrying over the

● Have wages subject to Idaho income tax withholding,

incentives.

● Be covered for Idaho unemployment insurance purposes,

● Be eligible to receive employer provided coverage under a

health plan described in Idaho Code section 41-4703,

TAX INCENTIVE CRITERIA

● Be employed on a regular full-time basis, and

To qualify you must certify that you have met, or will meet, the

● Meet the applicable wage requirements.

following tax incentive criteria at the project site during the project

period:

For this purpose, earnings include income subject to Idaho

income tax withholding, but do not include stock options or

● Invest at least $500,000 in new plant and building facilities,

restricted stock grants.

● Increase employment at the project site by at least 10 new

employees, who each earn at least $19.23 per hour, and

An existing employee of the taxpayer or a related taxpayer who

● If your new employment increased by more than the 10 new

is transferred to a new position at the project site will not qualify

employees, these additional new employees must on average

as a new employee, unless the transfer results in a net new job

earn at least $15.50 per hour worked during your tax year.

in Idaho.

Do not include the wages of employees earning more than

$48.08 per hour.

Once reached, the net increase in employment at the project site

must be maintained for the rest of the project period.

Project Site

Project site is where new plant and building facilities owned or

TAX INCENTIVES

leased by the taxpayer are located. The project site can be one

or more geographic areas in Idaho, but only if 80% or more of

If you have met, or will meet the tax incentive criteria, you are

the investment required is located at one of the areas.

eligible to claim the tax incentives listed in the table on page 2.

RECAPTURE

Project Period

Project period is the period of time that begins at the earlier of:

If you certify you will meet the tax incentive criteria, and then fail

● A physical change to the project site, or

to meet the tax incentive criteria, you will be required to recapture

● The first employment of new employees in Idaho who are

the full amount of any incentives claimed under the Act.

related to the activities at the project site.

Recapture of all or a portion of the incentives may also be

The project period cannot begin before January 1, 2006.

necessary if you:

The project period ends when the facilities constituting the

● Dispose of an investment in new plant or building facilities or

project are placed in service, but no longer than 10 years or later

it ceases to qualify prior to it being held for five years from the

than December 31, 2020.

date placed in service,

● Do not maintain the required level of employment for five

years from the date the project period ends, or

New Plant and Building Facilities

New plant and building facilities include property that meets

● Do not use, store, or otherwise consume property that was

either the definition of qualified investment for purposes of

allowed a sales tax exemption within the project site for a

the investment tax credit (ITC) or is a building or a structural

period of five full years from the date the property was placed

component of a building.

in service.

The property must be new property. Used property does not

qualify. New property is property acquired or constructed by the

taxpayer whose original use begins with the taxpayer after such

acquisition or construction. Original use means the first use to

which the property is put, whether or not that corresponds to

the use of the property by the taxpayer. Property used by the

taxpayer prior to its acquisition does not qualify.

Form 89se - Certification For Idaho'S Small Employer Tax Incentives Page 3

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