Form 83 2022 Small Employer Investment Tax Credit Names as shown on return Social Security number or EIN Qualifying for the Credit You can claim the small employer investment tax credit if you’ve certified on Form 89SE that you’ll meet all the following tax incentive criteria at the project site during the project period: • 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 • 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 instructions for who’s included in this calculation. If you haven’t filed Form 89SE with the Tax Commission or have been notified that you don’t qualify for the small employer incentives, you don’t qualify for this credit. Complete Form 49 for any investments that qualify for the regular investment tax credit. Credit Available Subject to Limitation 1. Amount of qualified investments acquired during the tax year. Include a complete list of qualified investments ......................................................................... 1 2. Amount of investments you claimed the property tax exemption for. Include Form 49E ........... 2 3. Subtract line 2 from line 1. This is the amount of qualified investments you may earn the small employer investment tax credit on ....................................................... 3 4. Credit earned. Multiply line 3 by 3.75% ..................................................................................... 4 5. Pass-through share of credit from an S corporation, partnership, trust, or estate ..................... 5 6. Credit received through unitary sharing. Include a schedule ..................................................... 6 7. Carryover of small employer investment tax credit from prior years .......................................... 7 8. Carryover eliminated due to recapture in 2022. Enter the amount from Form 83R, line 13. Include Form 83R .......................................................................................................... 8 9. Credit distributed to shareholders, partners, or beneficiaries .................................................... 9 10. Credit shared with unitary affiliates ............................................................................................ 10 11. Total credit available subject to limitations. Add lines 4 through 7, then subtract lines 8 through 10 ......................................................................................................... 11 12. Enter the Idaho income tax from your tax return ........................................................................ 12 13. Credit for income tax paid to other states ................................................ 13 14. Credit for contributions to Idaho educational entities ............................... 14 15. Investment tax credit. Include Form 49 ................................................... 15 16. Credit for contributions to Idaho youth and rehabilitation facilities .......... 16 17. Credit for production equipment using post-consumer waste ................. 17 18. Promoter-sponsored event credit ............................................................ 18 19. Credit for Idaho research activities from Form 67, line 29 ....................... 19 20. Broadband equipment investment credit from Form 68, line 18 .............. 20 21. Reserved .................................................................................................21 22. Add lines 13 through 21 ..............................................................................................................22 23. Tax available after other credits. Subtract line 22 from line 12 ................ 23 24. 62.5% of tax. Multiply line 12 by 62.5% ................................................... 24 25. Credit allowable subject to limitation of tax. Enter the smaller of: a. the amount from line 11, or b. $750,000 ............................................................................................ 25 26. Total credit allowed on current year tax return. Enter the smaller amount from lines 23, 24, or 25 here and on Form 44, Part I, line 6 ....................................................... 26 Credit Carryover 27. Total credit available subject to limitations. Enter the amount from line 11 ................................ 27 28. Credit allowed. Enter the amount from line 26.................................................................................... 28 29. Credit carryover to future years. Subtract line 28 from line 27. Enter the amount here and on Form 44, Part I, line 6 ..................................................................................................... 29 EFO00011 03-31-2022 |
Form 83 — Instructions Small Employer Investment Tax Credit 2022 General Instructions • Qualified broadband equipment as approved by Use Form 83 to calculate the Idaho small employer the Idaho Public Utilities Commission investment tax credit (SE-ITC) earned or allowed. Each member of a unitary group of corporations Nonqualifying Property that earns or is allowed the credit must complete a Property that doesn’t qualify includes: separate Form 83. • Buildings and their structural components (this The SE-ITC is allowed for property that qualifies for property may qualify for the small employer real the 3% investment tax credit (ITC). If you’re claiming property improvement tax credit – see Idaho the SE-ITC, you can’t claim the ITC on the same Form 84) property. • Property used in lodging facilities that rent 50% or more of their lodging units for periods of 30 days Qualifying Taxpayers or longer, such as apartment houses or rental To qualify for the SE-ITC, you must certify by filing homes. (This doesn’t apply to hotels and motels Form 89SE that you’ll meet the tax incentive criteria that rent more than half their units for periods at the project site during the project period. If you of less than 30 days.) Nonqualifying property haven’t filed Form 89SE with the Tax Commission includes property used in the living quarters, or you’ve been notified that you don’t qualify for lobby furniture, office equipment, and laundry the small employer incentives, you can’t claim this and swimming pool facilities, but excludes certain credit. If you don’t qualify for the SE-ITC, you may coin-operated machines. be eligible to claim the ITC. See Idaho Form 49. • The cost of property expensed under IRC Section 179 Qualifying Property • Used property not acquired by purchase If you’re a qualifying taxpayer, property that would qualify for the ITC qualifies for the SE-ITC. The • Property that’s either nondepreciable or has a property doesn’t have to be located at the project useful life of less than three years site to qualify. However, it does have to be placed in • The portion of property used for personal use service during the project period. • Used property in excess of $150,000 (total of all Property that qualifies for the ITC generally follows properties) the definition of qualified property found in the • Horses Internal Revenue Code (IRC), Sections 46 and 48 as in effect before 1986. The property must have a Idaho Exceptions to IRC Sections 46 and 48 useful life of three years or more and be property Idaho law specifically excludes the following property you’re allowed to depreciate or amortize. Qualifying from qualifying for the Idaho ITC: property includes the following property used in a • Property not used in Idaho trade or business: • Vehicles under 8,000 pounds gross vehicle • Tangible personal property – machinery and weight equipment Property Used Both In and Outside of Idaho • Other tangible property – property used as an integral part of manufacturing, production, If property is used both in and outside Idaho, compute extraction, or furnishing transportation, the qualified investment for all property using one of communications, or utility services, or research the following methods: facilities and bulk storage facilities used in 1. Percentage-of-Use Method – Multiply the connection with those businesses investment in each asset by a fraction where • Elevators and escalators Idaho use is the numerator and total use is the denominator. Use can be measured by machine • Single-purpose agricultural or horticultural hours, mileage, or any other method that structures accurately reflects the use. • Qualified timber property 2. Property Factor Numerator Method – Use • Petroleum storage facilities the amount included in the Idaho property numerator for each asset. EIN00088 03-31-2022 Page 1 of 3 |
Form 83 — Instructions 2022 (continued) Carryover Periods item is new or used, and the date placed in service. SE-ITC that was earned but not used against Don’t include any property placed in service before tax may be carried forward for 14 tax years. For the date the project period began. purposes of the carryover period, a short tax year Enter the amount of qualified investments for Line 2. counts as one tax year. which you claimed the property tax exemption. This exemption is allowed instead of earning the SE-ITC. Election to Claim Two-year Property Tax Include applicable Forms 49E. Exemption Instead of ITC If you placed personal property in service that Line 5. Enter the amount of the SE-ITC that’s being qualifies for the ITC, you may elect to exempt this passed through by S corporations, partnerships, trusts, property from your property tax. You aren’t eligible or estates in which you have an interest. This amount for the election if your rate of charge or rate of is reported on Form ID K-1, Part VII, line 47. return is regulated or limited by federal or state law. The exemption from the property tax is for Line 6. If you’re a member of a unitary group, enter two years. After the two years, you must pay any the amount of credit you received from another applicable property tax. You can’t claim the SE-ITC member of the unitary group. for any property that you elect to exempt from Line 7. Enter the carryover computed on your 2021 property tax. Form 83, line 29. The election is available if you had negative Idaho taxable income in the second tax year before the Line 9. If you’re an S corporation, partnership, trust, or tax year when the property was placed in service. estate, enter the amount of credit that passed through Negative Idaho taxable income must have been to shareholders, partners, or beneficiaries. computed without any carryover or carryback of net Line 10. If you’re a member of a unitary group, enter operating losses. the amount of credit you earned that you elect to share Make the election on Form 49E and file it with with other members of your unitary group. Before you the operator’s statement or personal property can share your credit, you must use the credit up to declaration. Include a copy of the election form with the allowable limitation of your tax liability. the original income tax returns for the tax years Corporations claiming the SE-ITC must provide a when the property was placed in service. calculation of the credit earned and used by each Recapture member of the combined group. The schedule must clearly identify the shared credit and the computation Compute recapture if you sell or otherwise dispose of any credit carryovers. of the property or it no longer qualifies for the SE-ITC before it’s been in service for five full years. Credit Limitations Compute recapture if you claimed the SE-ITC in an The SE-ITC is limited to the smaller of $750,000, earlier year and didn’t meet the tax incentive criteria 62.5% of the tax liability, or the Idaho income tax you certified to on Idaho Form 89SE. after allowing all other tax credits that can be claimed File Form 83R if you claimed the SE-ITC. File before the SE-ITC. Form 49R if you claimed the ITC or Form 49ER if The following credits must be applied to the tax before you claimed the property tax exemption. the SE-ITC: 1. Credit for income tax paid to other states Specific Instructions 2. Credit for contributions to Idaho educational Instructions are for lines not fully explained on the form. entities Credit Available Subject to Limitation 3. Investment tax credit Line 1. Include a list of all property you acquired 4. Credit for contributions to Idaho youth and and placed in service during the tax year that rehabilitation facilities qualifies for the SE-ITC. List each item of property 5. Credit for production equipment using and its location, your basis in the item, whether the post-consumer waste EIN00088 03-31-2022 Page 2 of 3 |
Form 83 — Instructions 2022 (continued) 6. Promoter-sponsored event credit Credit Carryover 7. Credit for Idaho research activities Line 29. The amount of credit available that exceeds 8. Broadband equipment investment credit the total credit allowed on the current year tax return can be carried forward up to 14 tax years. Enter this Line 12. Enter the amount of your Idaho income amount on Form 44, Part I, line 6 in the Carryover tax. This is the computed tax before subtracting any column. credits or adding the permanent building fund tax or any other taxes. Line 13. Enter the credit for income tax paid to other states from Form 39R, Form 39NR, or Form 66. This credit is available only to individuals, trusts, or estates. Line 26. Enter the smallest amount from lines 23, 24, or 25 on line 26. Enter this amount on Form 44, Part I, line 6 in the Credit Allowed column. Contact us: In the Boise area: (208) 334-7660 |Toll free: (800) 972-7660 Hearing impaired (TDD) (800) 377-3529 tax.idaho.gov/contact EIN00088 03-31-2022 Page 3 of 3 |