Form 85R Recapture of Idaho Small Employer New Jobs Tax Credit Names as shown on return Social Security number or EIN You must report recapture if one or both of the following occurred: 1. You didn’t meet the following tax incentive criteria: • Capital investment in new plant and building facilities of at least $500,000, • Increased employment by at least 10 new employees, each earning at least $19.23 per hour and receiving health benefits, and • For new employment increases above the 10 new employees, the average wages of the additional new employees are at least $15.50 per hour worked. See the instructions for who’s included in this calculation. 2. You didn’t maintain the level of qualifying employees for which you earned the credit for five full years after the end of the project period. Computation of Recaptured Credit A B C D E 1. Year that small employer new jobs tax credit was earned ................ 1 2. Average number of qualifying employees for the year the credit was earned ........................... 2 3. Idaho small employer new jobs tax credit earned ................... 3 4. If you didn’t meet the tax incentive criteria, enter 100% and go to line 6 ..................... 4 5. From the Recapture Worksheet below, enter the recapture percentage for the earliest year during the recapture period that the average number of qualifying employees fell below the average number of employees listed on line 2 ............................................. 5 6. Tentative recaptured credit. Multiply line 3 by line 4 or 5 ............. 6 7. Add line 6, columns A through E ............................................................................................................... 7 8. Pass-through share of credit recapture from S corporations, partnerships, trusts, or estates .................. 8 9. Add lines 7 and 8 ...................................................................................................................................... 9 10. Credit recapture distributed to shareholders, partners, or beneficiaries ................................................... 10 11. Enter the portion of original credit not used to offset any tax. Don’t enter more than line 9. The amount on this line reduces the carryover available to the current year ........................................... 11 12. Add lines 10 and 11 .................................................................................................................................. 12 13. Recapture of small employer new jobs tax credit. Subtract line 12 from line 9. Enter here and on Form 44, Part II, line 5. Don’t use this amount to reduce current year’s small employer new jobs tax credit computed on Form 85 ............................................................ 13 Recapture Worksheet – If you didn’t meet the tax incentive criteria, don’t use this section. Date project period ended Recapture Period - Five years Tax Average number of qualifying employees working Recapture after the end of the project period Year primarily within the project site during the year percentage First year after the end of the project period 100% Second year after the end of the project period 80% Third year after the end of the project period 60% Fourth year after the end of the project period 40% Fifth year after the end of the project period 20% EFO00019 08-30-2021 |
Form 85R — Instructions Recapture of Idaho Small Employer New Jobs Tax Credit General Instructions Line 3. Enter the amount of SE-NJTC credit earned for Use Form 85R to compute the increase in tax and the year listed on line 1. This amount is on Form 85, reduction to credit carryover for the recapture of the line 10 for the applicable year. small employer new jobs tax credit (SE-NJTC). Line 4. If recapture is required because you didn’t If you claimed the SE-NJTC in an earlier year and meet the tax incentive criteria, enter 100% on line 4. don’t meet the tax incentive criteria, recapture all the Leave line 5 blank and continue with line 6. SE-NJTC claimed in the earlier years. Also, compute recapture if you don’t maintain the Line 5. If recapture is required because you didn’t level of qualifying employees for which you earned maintain the required number of qualifying employees the credit for five full years from the date the project for five full years from the date the project period period ends. ended, you’ll need to complete the Recapture Worksheet at the bottom of the form. Enter on line 5 S corporations, partnerships, trusts, and estates that the recapture percentage for the earliest tax year from pass through SE-NJTC to shareholders, partners, the Recapture Worksheet that the average number of or beneficiaries must provide Form ID K-1 reporting qualified employees working primarily in the project the recapture amount and including in Part XI, site fell below the average number of qualifying Supplemental Information, details on the years the employees listed on line 2. credit being recaptured was originally earned. Add any tax owed from recapture of credits claimed Line 6. Multiply line 3 by the larger of the percentages in prior years to the tax otherwise determined in the listed on line 4 or 5. If there’s no percentage listed on year of recapture. Recapture of credits not claimed line 5, multiply line 3 by the percentage on line 4. in prior years reduces the amount of credit carryover Line 8. Enter the amount of recapture of SE-NJTC available to the current year. that’s being passed to you from S corporations, partnerships, trusts, and estates. This amount is Specific Instructions reported on Form ID-K-1, Part VII, line 54. Instructions are for lines not fully explained on the form. Line 9. Add lines 7 and 8 to determine the amount of Idaho Small Employer New Jobs Tax Credit credit subject to recapture. Earned in Prior Years Line 10. If you’re an S corporation, partnership, S corporations, partnerships, trusts, and estates that trust, or estate, enter the amount of credit recapture have SE-NJTC subject to recapture must complete that passed through to shareholders, partners, or lines 1 through 7 to determine the amount of credit beneficiaries. Don’t include any recapture on this line recapture. for shareholders, partners, or beneficiaries you’re Shareholders, partners, and beneficiaries will use paying the tax for. the information provided by the S corporation, partnership, trust, or estate to report their Line 11. If you didn’t use all the credit you originally pass-through share of the credit to be recaptured computed either in the year earned or in a carryover on line 8. If the only recapture you’re reporting is year, you won’t have to pay tax from recapture of the from a pass-through entity, skip lines 1 through 7 amount of the credit you didn’t use. and begin on line 8. Compute the unused portion of the original credit from Form 85R, line 3 or that was passed through to you Computation of Recaptured Credit from an S corporation, partnership, trust, or estate on Line 1. Starting with the earliest tax year in a separate sheet and enter the amount on this line. Column A, enter each tax year that the SE-NJTC Don’t enter more than the tax from recapture on line 9. was earned. Line 13. This is the total increase in tax. Enter it on Line 2. Enter the average number of qualifying this line and on Form 44, Part II, line 5. Don’t use this employees for the year listed on line 1. This amount amount to reduce your current year’s SE-NJTC from is on Form 85, line 1 for the applicable year. Form 85. EIN00092 08-30-2021 Page 1 of 2 |
Form 85R — Instructions (continued) Recapture Worksheet Recapture period. For each year of the recapture Complete the recapture worksheet only if you’re period, enter the tax year in the first column and the reporting recapture because you didn’t maintain the average number of employees who worked primarily level of qualifying employees on which you earned at the project site in the second column. List this for the credit for five full years after the end of the each year until the average number of employees project period. If you must report recapture because reported for a year falls below the qualifying level of you didn’t meet the tax incentive criteria, don’t employment reported on line 2. The first year in the complete the worksheet but instead enter 100% on recapture period that the average number of qualifying line 4 of the form. employees falls below the average number of qualifying employees listed on line 2 is the year when Project period end date. The project period ends recapture is required and determines the recapture when the new plant and building facilities for the percentage. project are placed in service, but no later than December 31, 2030. Enter the earlier of the two dates. Contact us: In the Boise area: (208) 334-7660 |Toll free: (800) 972-7660 Hearing impaired (TDD) (800) 377-3529 tax.idaho.gov/contact EIN00092 08-30-2021 Page 2 of 2 |