Form 49 Idaho Investment Tax Credit

1 a Amount of qualified investments acquired during the tax year Include a complete list of 1 Enter the Idaho income tax from your return 1 2 Credit earned Multiply line 1c by 3% 2 2 Credit for tax paid to other states 2 3 Idaho income tax after credit for tax paid to other states Subtract line 2 from line 1 3 3 Pass through share of credit from a partnership S corporation estate or trust 3 4 Credit for contributions to Idaho educational entities 4 4 Credit received through unitary sharing Include a schedule 4 5 Carryover of investment tax credit from prior years Include Form 49C or other schedule 5 5 Tax available after credits Subtract line 4 from line 3 5 6 50% of tax after credit for tax paid other states Multiply line 3 by 50% 6 6 Credit distributed to partners shareholders or beneficiaries 6 7 Credit shared with unitary affiliates 7 7 Investment tax credit available Enter the amount from Part I line 8 7 8 Investment tax credit allowed Enter the smallest amount from lines 5 6 or 7 here 8 Total credit available subject to limitation Add lines 2 through 5 and subtract lines 6 and 7 8 and on Form 44 Part I line 1 8 b Amount of investments for which you claimed the property tax exemption Include Form 49E 1b c Subtract line 1b from line 1a This is the amount of qualified investments on which you may earn the investment tax credit 1c Name(s) as shown on return qualified investments 1a 05 16 12 beginning in 2000 the credit carryover is limited to seven tax years unless the credit has not been carried over seven tax years before 2000 If the credit has been carried forward less than seven tax years and is eligible for carryover to tax years beginning on or after 2000 the carryover period is limited to 14 tax years Biofuel Infrastructure Investment Tax Credit Buildings and their structural components Carryover Periods Corporations claiming ITC must provide a calculation of the credit earned and used by each member of the combined group The schedule must clearly identify shared credit and the computation of any credit carryovers Credit for contributions to Idaho educational entities Credit for taxes paid to other states EFO00030 EFO00030p2 Election to Claim Two Year Property Tax Exemption and Forgo Investment Tax Credit Elevators and escalators For credit earned in tax years beginning on or after January 1 2000 the credit carryover is limited to 14 tax years For property acquired after 1989 but prior to tax years For purposes of the carryover period a short tax year counts as one tax year Compute the ITC carryover on Form 49C Form 49 is used to calculate the investment tax credit (ITC) earned or allowed Each member of a unitary group of corporations that earns or is allowed the credit must complete a separate Form 49 GENERAL INSTRUCTIONS Horses Idaho generally follows the definition of qualified property found in the Internal Revenue Code (IRC) Sections 46 and 48 as in effect prior to 1986 The property must have a useful life of three years or more and be property for which you are allowed the deduction for depreciation or amortization in lieu of depreciation Qualifying property includes the following property used in a trade or business: IDAHO INVESTMENT TAX CREDIT If property is used both in and outside Idaho compute the qualified investment for all such property using one of the following methods: If you placed biofuel infrastructure in service during the tax year and are claiming the biofuel infrastructure investment tax credit you can't claim the ITC on the same property If you placed personal property in service that qualifies for the ITC you may elect to exempt this property from your property tax You aren't eligible for the election if your rate of charge or rate of return is regulated or limited by federal or state law The exemption from the property tax is for two years After the two years you must pay any applicable property tax You can't claim the ITC for any property that you elect to exempt from property tax Instructions are for lines not fully explained on the form Instructions for Idaho Form 49 line 1 Line 1 Enter the amount of your Idaho income tax This is the computed tax before adding the permanent building fund tax or any other taxes or subtracting any credits Line 1a Include a list of all property you acquired during the tax year that qualifies for the ITC The list should identify each item of property your basis in the item and the date placed in service Don't include any property on which you are claiming the biofuel infrastructure investment tax credit or any property you are expensing under IRC Section 179 Line 1b Enter the amount of qualified investments for which you claimed the property tax exemption This exemption is allowed in lieu of earning the ITC Include applicable Form(s) 49E Line 2 Enter the credit for tax paid to other states from Form 39R or Form 39NR This credit is available only to individuals estates and trusts Line 3 Enter the amount of ITC that is being passed through by partnerships S corporations estates or trusts in which you have an interest This amount is reported on Form ID K 1 Part D Line 4 If you are a member of a unitary group enter the amount of credit you received from another member of the unitary group Line 5 Enter the ITC carryover from prior years The amount is computed on Form 49C or on a separate schedule Include a copy of Form 49C or the schedule See General Instructions for the carryover period allowed Line 6 If you are a partnership S corporation trust or estate enter the amount of credit that passed through to partners shareholders or beneficiaries Line 7 If you are a member of a unitary group enter the amount of credit you earned 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 Line 8 Enter the smallest amount from lines 5 6 or 7 Carry this amount to Form 44 Part I line 1 and enter it in the Credit Allowed column NONQUALIFYING PROPERTY Other tangible property property used as an integral part of manufacturing production extraction or furnishing transporta tion communications or utility services or research facilities and bulk storage facilities used in connection with those busi nesses PART I CREDIT AVAILABLE SUBJECT TO LIMITATION PART II LIMITATION Percentage of Use Method Multiply the investment in each asset by a fraction where Idaho use is the numerator and total use is the denominator Usage can be measured by machine hours mileage or any other method that accurately reflects the usage Petroleum storage facilities Property Factor Numerator Method Use the amount properly included in the Idaho property numerator for each property Property not used in Idaho Property subject to 60 month amortization Property that does not qualify includes: Property that is either nondepreciable or has a useful life of fewer than three years Property Used Both In and Outside Idaho Property used in lodging facilities that rent 50% or more of their lodging units for periods of 30 days or longer such as apartment houses or rental homes (Does not apply to hotels and motels that rent more than half their units for periods less than 30 days ) Nonqualifying property includes property used in the living quarters lobby furniture office equipment and laundry and swimming pool facilities but excludes certain coin operated machines Qualified broadband equipment as approved by the Idaho Public Utilities Commission Qualified timber property QUALIFYING DEPRECIABLE PROPERTY Recapture Single purpose agricultural or horticultural structures Social Security Number or EIN SPECIFIC INSTRUCTIONS Tangible personal property machinery and equipment The amount computed in method #2 will generally be the same as that computed in method #1 unless your business uses the Multistate Tax Commission special industry regulations to compute its factors The cost of property expensed under IRC Section 179 The election is available if you had negative Idaho taxable income in the second preceding tax year from the tax year in which the property was placed in service Negative Idaho taxable income must have been computed without regard to any carryover or carryback of net operating losses The election must be made on Form 49E and filed with the operator's statement or personal property declaration A copy of the election form must be included with the original income tax return(s) for the tax year(s) in which the property was placed in service The following credits must be applied to the tax before the investment tax credit: The ITC is limited to 50% of your Idaho income tax after deducting the credit for tax paid to other states The portion of property used for personal use Used property in excess of $150 000 Used property not acquired by purchase Vehicles under 8 000 pounds gross weight You must compute recapture if you sell or otherwise dispose of the property or it ceases to qualify for the ITC before it has been in service for five full years File Form 49ER if you claimed the property tax exemption File Form 49R if you claimed the ITC