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   01-31-2023  

                      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  01-31-2023                                                                           Page 1 of 3 

                                                                    Form 83 — Instructions     2022     (continued)

Carryover Periods                                           Don’t include any property placed in service before 
SE-ITC that was earned but not used against                 the date the project period began.

tax may be carried forward for 14 tax years. For             Enter the amount of qualified investments for 
                                                            Line 2.
purposes of the carryover period, a short tax year          which you claimed the property tax exemption. This 
counts as one tax year.                                     exemption is allowed instead of earning the SE-ITC. 
                                                            Include applicable Forms 49E.
Election to Claim Two-year Property Tax 
Exemption Instead of ITC                                    Line 5. Enter the amount of the SE-ITC that’s being 
If you placed personal property in service that             passed through by S corporations, partnerships, 
qualifies for the ITC, you may elect to exempt this         trusts, or estates in which you have an interest. This 
property from your property tax. You aren’t eligible        amount is reported on Form ID K-1, Part VII, line 47 or 
for the election if your rate of charge or rate of          Form ID K-1, Part XI, line 70 (ABE).
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
item is new or used, and the date placed in service. 

EIN00088 01-31-2023                                                                                        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 01-31-2023                                                                                  Page 3 of 3