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Form 49
Investment Tax Credit 2022

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. Pass-through credit from ABE ................................................................................................................ 7

8. Carryover of ITC from prior years. Include Form 49C or other schedule ............................................... 8

9. Amount received through unitary sharing. Include a schedule ............................................................. 9

10. Amount shared with unitary affiliates. Include a schedule .................................................................... 10

11. Total credit available. Add lines 6 through 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. Enter the smallest amount from lines 5, 6, or 7 plus
the amount from line 8 here and on Form 44, Part I, line 1 .................................................................... 9
EFO00030 12-30-2022

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                      Form 49 — Instructions
                      Investment Tax Credit                                               2022

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   08-18-2022                                                                       Page 1 of 3

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Form 49 — Instructions 2022 (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 59.
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 60.
acquired and placed in service during the tax
year that qualifies for the ITC. The list should Line 7. Enter the amount of credit passed through
identify: from an ABE.

• Each item of property and its location Line 8. Enter the ITC carryover from prior years.
• Your basis in the item Compute the amount on Form 49C or on a
• Whether the item is new or used, and separate schedule. Include a copy of Form 49C or
the schedule. See General Instructions for the
• The date placed in service
carryover period allowed.
The basis of qualified property is the Idaho
adjusted basis computed without bonus Line 9. If you’re a member of a unitary group, enter
depreciation. Don’t include any property you’re the amount of credit you received from another
expensing under IRC section 179. member of the unitary group. Include a schedule
detailing the entity name, EIN, and amount of ITC
Column A
received.
Enter the amount of qualified new investments
placed into service in the current year. Line 10. If you’re a member of a unitary group,
Column B enter the amount of qualifying investments that you
Enter the amount of qualified used investments elect to share with other members of your unitary
placed into service in the current year. group. Before you can share your credit, you must
use the credit up to the allowable limitation of your
Line 1b. This exemption is allowed instead of tax liability.
earning the ITC. Include applicable Form 49Es.
Corporations claiming ITC must provide a detailed
Column A schedule showing the name, EIN, and amount
Enter the amount of qualified new investments of ITC used by each member of the combined
you claimed the property tax exemption on.

EIN00076 08-18-2022 Page 2 of 3

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                                                             Form 49 — Instructions     2022     (continued)

group. The schedule must clearly identify shared 
investments and the computation of any credit 
carryovers.

Part II — Limitation
The ITC is limited to the smallest of the following:
•  50% of your Idaho income tax after credit for 
taxes paid to other states
•  Tax available after credit for taxes paid to 
other states and credit for contributions to 
Idaho educational entities
•  ITC available

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 2.  Enter the credit for income tax paid to 
other states from Form 39R or Form 39NR. This 
credit is available only to individuals, trusts, and 
estates.

Line 9.  Enter the smallest amount from lines 5, 
6, or 7 plus the amount from line 8. Carry this 
amount to Form 44, Part I, line 1, and enter it 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
EIN00076 08-18-2022                                                                               Page 3 of 3

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