Idaho Investment Tax Credit Recapture
The Idaho Investment Tax Credit (ITC) allows taxpayers to claim a credit for qualifying investments in Idaho. However, if the qualifying property is disposed of or ceases to meet eligibility requirements, a recapture may be required. This means the taxpayer must repay a portion of the credit previously claimed.
What is Recapture?
Recapture occurs when an asset that qualified for the Idaho Investment Tax Credit no longer meets the criteria, such as being sold, transferred, or ceasing to be used in Idaho. The state requires taxpayers to report this on Form 49R — Recapture of Idaho Investment Tax Credit.
How to Calculate Recapture
- Line 1: Enter the amount of the entity’s Idaho income tax (computed tax before credits).
- Line 14: Enter the amount of tax from recapture of investment tax credit.
- Subtract line 14 from line 11 to determine the amount to reduce the current year’s investment tax credit.
- Line 15: Number of full years between the date the asset qualified and the date it ceased to qualify.
- Line 17: Property Tax Recapture — Multiply line 13 by line 16 (0.0.00).
Reporting Requirements
Taxpayers must include Form 49R with their Idaho income tax return. The form requires detailed information about the asset, including:
- Date the asset ceased to qualify (Line 14)
- Number of full years between qualification and disqualification (Line 15)
- Recaptured amount (Line 17)
Software Assistance from OLT (Online Taxes)
OLT (Online Taxes) provides software guidance for adding Form 49R during state tax filing. Users can navigate to the Idaho state section, select "Recapture of Idaho Investment Tax Credit," and follow on-screen instructions to complete Form 49R.
Related Forms and Credits
- Form ID K-1: Contains information on qualifying investments and recapture amounts for partnerships or S corporations.
- Form 49ABE: Used by entities claiming investment tax credits; includes details on qualified investments and credits.
- Form 49R: Specifically designed for reporting recapture of investment tax credits.
Source:
Form 49R — Recapture of Idaho Investment Tax Credit
Form ID K-1 — Instructions
Form 49ABE — Instructions
Disclaimer: Always verify details with official forms and instructions from the Idaho State Tax Commission or Federal Department of Revenue. OLT (Online Taxes) provides guidance based on available resources but does not guarantee accuracy or completeness.