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     09-22-2023

                      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 XII, 
                                                            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 49 or Form ID 
Instructions are for lines not fully explained on the form. K-1, Part XI, line 74 (Composite/ABE).

Idaho Small Employer New Jobs Tax Credit                    Line 9. Add lines 7 and 8 to determine the amount of 
Earned in Prior Years                                       credit subject to recapture.
S corporations, partnerships, trusts, and estates that 
have SE-NJTC subject to recapture must complete             Line 10. If you’re an S corporation, partnership, 
lines 1 through 7 to determine the amount of credit         trust, or estate, enter the amount of credit recapture 
recapture.                                                  that passed through to shareholders, partners, or 
                                                            beneficiaries. Don’t include any recapture on this line 
Shareholders, partners, and beneficiaries will use          for shareholders, partners, or beneficiaries you’re 
the information provided by the S corporation,              paying the tax for.
partnership, trust, or estate to report their 
pass-through share of the credit to be recaptured           Line 11. If you didn’t use all the credit you originally 
on line 8. If the only recapture you’re reporting is        computed either in the year earned or in a carryover 
from a pass-through entity, skip lines 1 through 7          year, you won’t have to pay tax from recapture of the 
and begin on line 8.                                        amount of the credit you didn’t use.
                                                            Compute the unused portion of the original credit from 
Computation of Recaptured Credit
                                                            Form 85R, line 3 or that was passed through to you 
Line 1. Starting with the earliest tax year in              from an S corporation, partnership, trust, or estate on 
Column A, enter each tax year that the SE-NJTC              a separate sheet and enter the amount on this line. 
was earned.                                                 Don’t enter more than the tax from recapture on line 9.

Line 2. Enter the average number of qualifying              Line 13. This is the total increase in tax. Enter it on 
employees for the year listed on line 1. This amount        this line and on Form 44, Part II, line 5. Don’t use this 
is on Form 85, line 1 for the applicable year.              amount to reduce your current year’s SE-NJTC from 
                                                            Form 85.

EIN00092 09-22-2023                                                                                         Page 1 of 2 

                                                                              Form 85R — Instructions      (continued)

If you’re an S corporation or partnership and you’ve Recapture period. For each year of the recapture 
elected to be an ABE, this amount also needs to be   period, enter the tax year in the first column and the 
distributed to the shareholders or partners on their average number of employees who worked primarily 
Form ID K-1.                                         at the project site in the second column. List this for 
                                                     each year until the average number of employees 
Recapture Worksheet                                  reported for a year falls below the qualifying level of 
                                                     employment reported on line 2. The first year in the 
Complete the recapture worksheet only if you’re 
                                                     recapture period that the average number of qualifying 
reporting recapture because you didn’t maintain the 
                                                     employees falls below the average number of 
level of qualifying employees on which you earned 
                                                     qualifying employees listed on line 2 is the year when 
the credit for five full years after the end of the 
                                                     recapture is required and determines the recapture 
project period. If you must report recapture because 
                                                     percentage.
you didn’t meet the tax incentive criteria, don’t 
complete the worksheet but instead enter 100% on 
line 4 of the form.

Project period end date. The project period ends 
when the new plant and building facilities for the 
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
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