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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
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