Fillable Form 49 - Idaho Investment Tax Credit

Instructions for Idaho Form 49

EFO00030p2

09-14-15

GENERAL INSTRUCTIONS

SPECIFIC INSTRUCTIONS

Form 49 is used to calculate the investment tax credit (ITC)

Instructions are for lines not fully explained on the form.

earned or allowed. Each member of a unitary group of

PART I - CREDIT AVAILABLE SUBJECT TO LIMITATION

corporations that earns or is allowed the credit must complete a

separate Form 49.

Line 1a. Include a list of all property you acquired and placed

in service during the tax year that qualifies for the ITC. The list

Property Used Both In and Outside Idaho

should identify each item of property and its location, your basis in

If property is used both in and outside Idaho, compute the

the item, whether the item is new or used, and the date placed in

qualified investment for all such property using one of the

service. The basis of qualified property is the Idaho adjusted basis

following methods:

computed without regard to bonus depreciation. Don't include

any property on which you're claiming the biofuel infrastructure

1. Percentage-of-Use Method - Multiply the investment in each

investment tax credit, or any property you're expensing under IRC

asset by a fraction where Idaho use is the numerator and

Section 179.

total use is the denominator. Usage can be measured by

machine hours, mileage, or any other method that accu-

Line 1b. Enter the amount of qualified investments for which you

rately reflects the usage.

claimed the property tax exemption. This exemption is allowed

2. Property Factor Numerator Method - Use the amount

instead of earning the ITC. Include applicable Form(s) 49E.

correctly included in the Idaho property numerator for each

asset.

Line 3. Include a list of all ITC that is being passed through by S

corporations, partnerships, trusts, or estates in which you have an

The amount computed in method #2 will generally be the same

interest. This amount is reported on Form ID K-1, Part D,

as that computed in method #1 unless your business uses

line 1. The list should identify each entity by name, EIN, and the

the Multistate Tax Commission special industry regulations to

amount of ITC that is being passed through.

compute its factors.

Line 4. If you are a member of a unitary group, enter the amount

Carryover Periods

of credit you received from another member of the unitary group.

Compute the ITC carryover on Form 49C.

● For property acquired after 1989 but before tax years

Line 5. Enter the ITC carryover from prior years. The amount

beginning in 2000, the credit carryover is limited to seven

is computed on Form 49C or on a separate schedule. Include a

tax years unless the credit hasn't been carried over seven

copy of Form 49C or the schedule. See General Instructions for

tax years before 2000. If the credit has been carried for-

the carryover period allowed.

ward less than seven tax years, and is eligible for carryover

to tax years beginning on or after 2000, the carryover period

Line 6. If you are an S corporation, partnership, trust, or estate,

is limited to 14 tax years.

enter the amount of credit that passed through to shareholders,

● For credit earned in tax years beginning on or after January

partners, or beneficiaries.

1, 2000, the credit carryover is limited to 14 tax years.

Line 7. If you are a member of a unitary group, enter the amount

For purposes of the carryover period, a short tax year counts as

of credit you earned that you elect to share with other members

of your unitary group. Before you can share your credit, you must

one tax year.

use the credit up to the allowable limitation of your tax liability.

Election to Claim Two-Year Property Tax Exemption and

Forgo Investment Tax Credit

Corporations claiming ITC must provide a calculation of the credit

earned and used by each member of the combined group. The

If you placed personal property in service that qualifies for the

schedule must clearly identify shared credit and the computation

ITC, you may elect to exempt this property from your property

of any credit carryovers.

tax. You aren't eligible for the election if your rate of charge

or rate of return is regulated or limited by federal or state law.

PART II - LIMITATION

The exemption from the property tax is for two years. After the

The ITC is limited to 50% of your Idaho income tax after

two years, you must pay any applicable property tax. You can't

deducting:

claim the ITC for any property that you elect to exempt from

● Credit for income taxes paid to other states

property tax.

● Credit for contributions to Idaho educational entities

The election is available if you had negative Idaho taxable

Line 1. Enter the amount of your Idaho income tax. This is the

income in the second preceding tax year from the tax year

computed tax before adding the permanent building fund tax or

in which the property was placed in service. Negative Idaho

any other taxes, or subtracting any credits.

taxable income must have been computed without regard to

any carryover or carryback of net operating losses.

Line 2. Enter the credit for income tax paid to other states

from Form 39R or Form 39NR. This credit is available only to

The election must be made on Form 49E and filed with the

operator's statement or personal property declaration. A copy

individuals, trusts, and estates.

of the election form must be included with the original income

Line 8. Enter the smallest amount from lines 5, 6, or 7. Carry

tax return(s) for the tax year(s) in which the property was placed

in service.

this amount to Form 44, Part I, line 1, and enter it in the Credit

Allowed column.

Biofuel Infrastructure Investment Tax Credit

If you placed biofuel infrastructure in service during the tax year

and are claiming the biofuel infrastructure investment tax credit,

you can't claim the ITC on the same property.

Recapture

You must compute recapture if you sell or otherwise dispose of

the property or it ceases to qualify for the ITC before it has been

in service for five full years. File Form 49R if you claimed the

ITC. File Form 49ER if you claimed the property tax exemption.

Form 49 - Idaho Investment Tax Credit - 2015 Page 2

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