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Form 83R — Instructions
Recapture of Idaho Small Employer
Investment Tax Credit
General Instructions credit. Use a separate column for each item. Use an
Use Form 83R to compute the increase in tax and additional Form 83R or other schedule with the same
reduction to credit carryover for the recapture of the information as required on Form 83R if you have
small employer investment tax credit (SE-ITC). SE-ITC recapture on more than five items.
If you claimed the SE-ITC in an earlier year and Part II — Original Idaho Small Employer
don’t meet the tax incentive criteria you certified to Investment Tax Credit
on Idaho Form 89SE, you must recapture all the S corporations, partnerships, trusts, and estates that
SE-ITC claimed in the earlier years. have credit subject to recapture must complete lines 1
Recompute the credit if you earned it in an earlier through 9 to determine the amount of credit recapture.
year but disposed of the property before the end of Shareholders, partners, and beneficiaries will use the
the five-year recapture period. Also, recompute the information provided by the S corporation, partnership,
credit on any property that no longer qualifies as trust, or estate to report their pass-through share of the
SE-ITC property. Property moved from Idaho within credit to be recaptured on line 10. If the only recapture
the first five years no longer qualifies as SE-ITC you’re reporting is from a pass-through entity, skip
property and is subject to recapture. lines 1 through 9 and begin on line 10.
Recapture may be necessary when:
Line 1. Enter the month, day, and year that the
• An S corporation shareholder’s interest is property was placed in service.
reduced by a sale, redemption, or other
disposition of the shareholder’s stock, or by Line 2. Enter the cost or other basis of the property
the corporation’s issuance of more shares. used to compute the original SE-ITC.
• A partner’s proportionate interest in the general
Line 4. Multiply line 2 by line 3 to compute the credit
profits of the partnership (or in a particular item
originally earned for each property listed.
of property) is reduced.
• A trust’s, estate’s, or beneficiary’s Line 5. Enter the month, day, and year the property
proportionate interest in the income of the trust ceased to qualify as SE-ITC property.
or estate is reduced.
Line 6. Don’t enter partial years. If the property was
S corporations, partnerships, trusts, and estates held less than 12 months, enter zero. If you didn’t
that pass through SE-ITC to the shareholders, meet the tax incentive criteria, enter zero.
partners, or beneficiaries must provide Form ID K-1
reporting the recapture amount and including in Part III — Computation of Recapture Tax
Part XI, Supplemental Information, details on the Line 7. Enter the appropriate recapture percentage
years the credit being recaptured was originally from the following table.
earned.
Add any tax owed from recapture of credits claimed If the number of full years Then the recapture
in prior years to the tax otherwise determined in on Form 83R, line 6 is ... percentage is...
the year of recapture. Recapture of credits not 0 100
claimed in prior years reduces the amount of credit 1 80
carryover available to the current year. 2 60
3 40
Specific Instructions 4 20
Instructions are for lines not fully explained on the 5 or more 0
form.
Line 9. Add all amounts on line 8. If you’ve used
Part I — Identify Property That No Longer more than one Form 83R or separate sheets to list
Qualifies as Idaho Small Employer Investment additional items you computed an increase in tax on,
Tax Credit Property write to the left of the entry space “Tax from attached”
Describe the property for which you must recompute and the total tax from the separate sheets. Include the
the SE-ITC. Fill in lines 1 through 8 in Parts II and III amount in the total for line 9.
for each property on which you’re recomputing the
EIN00089 01-31-2023 Page 1 of 2
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