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Form 49
Investment Tax Credit 2023

Names as shown on return Social Security number or EIN

Part I — Credit Available Subject to Limitation
Column A - New Column B - Used
1. a. Amount of qualified investments acquired during the tax year.
Include a detailed list .............................................................................. 1 a
b. Amount of investments you claimed the property tax exemption on.
Include applicable Form 49Es ................................................................... 1b
c. Subtract line 1b from line 1a. This is the amount of qualified
investments you can earn the investment tax credit (ITC) on .................... 1c
2. Pass-through share of qualified investments from an S corporation, partnership, trust, or estate:
a. b. c.
Pass-through Entity Name Pass-through Entity EIN Pass-through Share

Total column c ............................ 2
3. Total qualified investments. Add lines 1c and 2
(Column B is limited to $150,000) .................................................................. 3

4. Amount distributed to shareholders, partners, or beneficiaries ...................... 4

5. Total available qualifying investments. Line 3 minus line 4 ............................ 5
6. Credit earned. Multiply the sum of line 5 Columns A and B by 3% ......................................................... 6
7. a. Pass-through credit from ABE – Taxpayers not distributing the credit. See instructions ................... 7a
b. Pass-through credit from ABE – Taxpayers distributing the credit. See instructions ......................... 7 b
8. a. Carryover of ITC from prior years – Taxpayers not distributing the carryover. See instructions ......... 8a
b. Carryover of ITC from prior years – Taxpayers distributing carryover. See instructions ..................... 8 b
9. Amount received through unitary sharing or from a co-op. Include a schedule .................................... 9
10. Amount shared with unitary affiliates. Include a schedule .................................................................... 10
11. Total credit available. Add lines 6, 7a, 8a, and 9, then subtract line 10 .................................................. 11

Part II — Limitation
1. Enter the Idaho income tax from your return .......................................................................................... 1
2. Credit for income tax paid to other states ............................................................................................... 2
3. Idaho income tax after credit for income tax paid to other states. Line 1 minus line 2 ........................... 3
4. Credit for contributions to Idaho educational entities .............................................................................. 4
5. Tax available after credits. Line 3 minus line 4 ............................................... 5
6. 50% of tax after credit for income tax paid to other states. Multiply line 3 by 50% 6
7. Investment tax credit available. Enter the amount from Part I, line 11 ............ 7
8. ABE Investment Tax Credit. Include Form 49ABE .......................................... 8
9. Investment tax credit allowed. Add the amount from line 8 to the smallest amount from lines 5, 6, or 7.
Enter here and on Form 44, Part 1, line 1 ............................................................................................... 9
EFO00030 09-05-2023

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                      Form 49 — Instructions
                      Investment Tax Credit                                               2023

General Instructions                                • The portion of property used for personal use
Use Form 49 to calculate the investment tax         • Used property in excess of $150,000 (total 
credit (ITC) earned or allowed. Each member           of all properties)
of a unitary group of corporations that earns or    • Horses
is allowed the credit must complete a separate      • Property not used in Idaho
Form 49.
                                                    • Vehicles under 8,000 pounds gross vehicle 
Qualified Depreciable Property and                    weight (GVW)
Nonqualifying property                              •  Property previously used by the same taxpayer 
Idaho generally follows the definition of qualified   or an affiliate of the taxpayer 
property found in the Internal Revenue Code 
(IRC) sections 46 and 48 as in effect before        Property Used Both In and Outside Idaho
1986. The property must have a useful life of       If property is used both in and outside Idaho, 
three years or more and be property that you’re     compute the qualified investment for all such 
allowed to depreciate or amortize. Qualifying       property using one of the following methods:
property includes the following property used in    1. Percentage-of-Use Method – Multiply the 
a trade or business:                                  investment in each asset by a fraction where 
• Tangible personal property – machinery and          Idaho use is the numerator and total use is 
  equipment                                           the denominator. Use can be measured by 
                                                      machine hours, mileage, or any other method 
• Other tangible property
                                                      that accurately reflects the use.
          Property used as an integral part of 
                                                    2. Property Factor Numerator Method – Use the 
           manufacturing, production, extraction, 
                                                      amount correctly included in the Idaho property 
           or
                                                      numerator for each asset.
          Furnishing transportation, 
                                                    The amount computed in method #2 generally will 
           communications, or utility services, or 
                                                    be the same as that computed in method #1 unless 
          
           Research facilities and bulk storage     your business uses the Multistate Tax Commission’s 
           facilities used in connection with those special-industry regulations to compute its factors.
           businesses
• Elevators and escalators                          Carryover Periods
                                                    Compute the ITC carryover on Form 49C.
• Single-purpose agricultural or horticultural 
  structures                                        •  For credit earned in tax years beginning on or 
                                                      after January 1, 2000, the credit carryover is 
• Qualified timber property
                                                      limited to 14 tax years.
• Petroleum storage facilities
                                                    For purposes of the carryover period, a short tax 
• Qualified broadband equipment as approved 
                                                    year counts as one tax year.
  by the Idaho Public Utilities Commission
                                                    Election to Claim Two-Year Property Tax 
Nonqualified Property 
                                                    Exemption Instead of ITC
Property that doesn’t qualify includes:
                                                    If you placed personal property in service that 
• Buildings and their structural components         qualifies for the ITC, you may elect to exempt this 
• Property used in lodging facilities that          property from your property tax. If federal or state 
  rent 50% or more of their lodging units           law regulates or limits your rate of charge or rate 
  for periods of 30 days or longer, such as         of return, you aren’t eligible for the election. The 
  apartment houses or rental homes                  exemption from the property tax is for two years. 
• The cost of property expensed under IRC           After the two years, you must pay any applicable 
  section 179                                       property tax. You can’t claim the ITC for any 
• Used property not acquired by purchase            property that you elect to exempt from property tax.

EIN00076   09-05-2023                                                                       Page 1 of 3

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Form 49 — Instructions 2023 (continued)

The election is available if you had negative Column B
Idaho taxable income in the second preceding Enter the amount of qualified used investments
tax year from the tax year when the property was you claimed the property tax exemption on.
placed in service. Negative Idaho taxable income
must have been computed without any carryover Line 2. Include a list of all ITC that’s being passed
or carryback of net operating losses. through by S corporations, partnerships, trusts, or
estates that you have an interest in. This amount
Make the election on Form 49E and file with is reported on Form ID K-1, Part X. Identify each
the operator’s statement or personal property entity by name, EIN, and the share of new and used
declaration. Include a copy of the election form qualified investments being passed through.
with the original income tax returns for the tax
years when the property was placed in service. Line 3. Used property is limited to $150,000. If
the total qualified used investments is greater than
Recapture $150,000, enter $150,000 in Column B.
Compute recapture if you sell or otherwise
dispose of the property, or if it no longer qualifies Line 4. If you’re an S corporation, partnership,
for the ITC before it’s been in service for five trust, or estate:
full years. File Form 49R if you claimed the ITC. Column A
File Form 49ER if you claimed the property tax Enter the amount of qualified new investments
exemption. that passed through to shareholders, partners,
or beneficiaries reported on Form ID K-1, Part X,
Specific Instructions line 54.
Instructions are for lines not fully explained on the Column B
form. Enter the amount of qualified used investments
that passed through to shareholders, partners,
Part I — Credit Available Subject to Limitation or beneficiaries reported on Form ID K-1, Part X,
Line 1a. Include a list of all property you line 55.
acquired and placed in service during the tax
year that qualifies for the ITC. The list should Line 7a. Enter the amount of credit passed through
identify: from an ABE that is not being distributed to other
taxpayers.
• Each item of property and its location
• Individuals and C corporations
• Your basis in the item
▪ Enter the amount of credit passed through
• Whether the item is new or used, and
from an ABE
• The date placed in service
• Trusts and Estates
The basis of qualified property is the Idaho
▪ Enter the amount of credit passed through
adjusted basis computed without bonus
from an ABE that is not being distributed
depreciation. Don’t include any property you’re
to beneficiaries
expensing under IRC section 179.
• S corporations or partnerships
Column A (Composite Return)
Enter the amount of qualified new investments
▪ Enter the amount of credit passed through
placed into service in the current year.
from an ABE that is not being distributed
Column B
Enter the amount of qualified used investments Line 7b. Enter the amount of credit passed through
placed into service in the current year. from an ABE that is being distributed to other
taxpayers.
Line 1b. This exemption is allowed instead of • Trusts and Estates
earning the ITC. Include applicable Form 49Es.
▪ Enter the amount of credit passed through
Column A from an ABE that is being distributed to
Enter the amount of qualified new investments beneficiaries
you claimed the property tax exemption on.

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Form 49 — Instructions 2023 (continued)

• S corporations or partnerships Corporations claiming ITC must provide a detailed
(Composite Return) schedule showing the name, EIN, and amount
▪ Enter the amount of credit passed through of ITC used by each member of the combined
from an ABE that is being distributed to group. The schedule must clearly identify shared
resident shareholders or partners investments and the computation of any credit
carryovers.
• Non ABE and Non Composite S corporations
or partnerships Part II — Limitation
▪ Enter the amount of credit passed through The ITC is limited to the smallest of the following:
from an ABE that is being distributed to • 50% of your Idaho income tax after credit for
shareholders or partners taxes paid to other states
Line 8a. Enter the ITC carryover from prior • Tax available after credit for taxes paid to
years not being distributed to other taxpayers. other states and credit for contributions to
Compute the amount on Form 49C or on a Idaho educational entities
separate schedule. Include a copy of Form 49C or • ITC available
the schedule. See General Instructions for the
carryover period allowed. Line 1. Enter the amount of your Idaho income
tax. This is the computed tax before adding the
• Individuals, trusts, estates, or C corporations
permanent building fund tax or any other taxes,
▪ Enter the amount of the ITC carryover or subtracting any credits.
from prior years
• S corporations or partnerships Line 2. Enter the credit for income tax paid to
(Composite Return) other states from Form 39R or Form 39NR. This
credit is available only to individuals, trusts, and
▪ Enter the amount of the ITC carryover
estates.
from prior years
Line 9. Enter the smallest amount from lines 5,
Line 8b. Enter the ITC carryover from prior years
6, or 7 plus the amount from line 8. Carry this
being distributed to other taxpayers.
amount to Form 44, Part I, line 1, and enter it in
• Non ABE and Non Composite S corporations the Credit Allowed column.
or partnerships
The amount of credit available that exceeds the
▪ Enter the amount of the ITC carryover
total credit allowed on the current year tax return
from prior ABE or composite years to be
can be carried forward up to 14 tax years. Enter this
distributed to shareholders or partners
on Form 44, Part I, line 1 in the Carryover column.
Line 9. If you’re a member of a unitary group, enter
the amount of credit you received from another
member of the unitary group. Include a schedule
detailing the entity name, EIN, and amount of ITC
received.

Line 10. If you’re a member of a unitary group,
enter the amount of qualifying investments that you
elect to share with other members of your unitary
group. Before you can share your credit, you must
use the credit up to the allowable limitation of your
tax liability.

Contact us:
In the Boise area: (208) 334-7660 |Toll free: (800) 972-7660
Hearing impaired (TDD) (800) 377-3529
tax.idaho.gov/contact
EIN00076 09-05-2023 Page 3 of 3

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