Fillable Form 49 - Idaho Investment Tax Credit

Instructions for Idaho Form 49

EFO00030p2

05-11-11

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

corporations that earns or is allowed the credit must complete a

PART I - CREDIT AVAILABLE SUBJECT TO LIMITATION

separate Form 49.

Line 1a. Include a list of all property you acquired during the tax

year that qualifies for the ITC. The list should identify each item

Property Used Both In and Outside Idaho

of property, your basis in the item and the date placed in service.

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

Don't include any property on which you are claiming the biofuel

qualified investment for all such property using one of the

infrastructure investment tax credit, or any property you are

following methods:

expensing under IRC Section 179.

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

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

asset by a fraction where Idaho use is the numerator and

claimed the property tax exemption. This exemption is allowed in

total use is the denominator. Usage can be measured by

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

machine hours, mileage or any other method that accurately

reflects the usage.

Line 3. Enter the amount of ITC that is being passed through by

Property Factor Numerator Method - Use the amount

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

properly included in the Idaho property numerator for each

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

property.

line 1.

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

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

as that computed in method #1 unless your business uses

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

the Multistate Tax Commission special industry regulations to

compute its factors.

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

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

Carryover Periods

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

●

For property acquired after 1989 but prior to tax years

the carryover period allowed.

beginning in 2000, the credit carryover is limited to seven

tax years unless the credit has not been carried over seven

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

tax years before 2000. If the credit has been carried forward

enter the amount of credit that passed through to partners,

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

shareholders, or beneficiaries.

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

limited to 14 tax years.

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

●

For credit earned in tax years beginning on or after January

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

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

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

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

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

one tax year. Compute the ITC carryover on Form 49C.

Corporations claiming ITC must provide a calculation of the credit

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

Election to Claim Two-Year Property Tax Exemption and

schedule must clearly identify shared credit and the computation

Forego Investment Tax Credit

of any credit carryovers.

If you placed personal property in service that qualifies for the

PART II - LIMITATION

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

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

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

deducting the credit for tax paid to other states.

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

The following credits must be applied to the tax before the

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

investment tax credit:

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

●

Credit for 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 tax paid to other states from Form

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

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

estates, and trusts.

operator's statement or personal property declaration. A copy of

the election form must be included with the original income tax

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

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

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

service.

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 49ER if you claimed the

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

Form 49 - Idaho Investment Tax Credit - 2011 Page 2

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