PDF document

- 1 -

Form 83
2024
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 2024. 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. Part-year resident grocery credit ............................................................. 14
15. Credit for contributions to Idaho educational entities ............................... 15
16. Investment tax credit. Include Form 49 ................................................... 16
17. Credit for contributions to Idaho youth and rehabilitation facilities .......... 17
18. Credit for production equipment using post-consumer waste ................. 18
19. Promoter-sponsored event credit ............................................................ 19
20. Credit for Idaho research activities from Form 67, line 29 ....................... 20
21. Broadband equipment investment credit from Form 68, line 18 .............. 21
22. Reserved .................................................................................................22
23. Add lines 13 through 22 .............................................................................................................. 23
24. Tax available after other credits. Subtract line 23 from line 12 ................ 24
25. 62.5% of tax. Multiply line 12 by 62.5% ................................................... 25
26. Credit allowable subject to limitation of tax. Enter the smaller of:
a. the amount from line 11, or
b. $750,000 ............................................................................................ 26
27. Total credit allowed on current year tax return. Enter the smaller amount
from lines 24, 25, or 26 here and on Form 44, Part I, line 6 ....................................................... 27
Credit Carryover
28. Total credit available subject to limitations. Enter the amount from line 11 ................................ 28
29. Credit allowed. Enter the amount from line 26.................................................................................... 29
30. Credit carryover to future years. Subtract line 28 from line 27. Enter the amount here
and on Form 44, Part I, line 6 ..................................................................................................... 30
EFO00011 08-14-2024

- 2 -

Enlarge image

                      Form 83 — Instructions
                      Small Employer Investment Tax Credit                                     2024

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  08-14-2024                                                                           Page 1 of 3

- 3 -

Enlarge image

Form 83 — Instructions 2024 (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.
Election to Claim Two-year Property Tax Include applicable Forms 49E.

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 42 or
for the election if your rate of charge or rate of Form ID K-1, Part XI, line 66 (Composite/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 2023
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. Part-year resident grocery credit
Instructions are for lines not fully explained on the form.
3. Credit for contributions to Idaho educational
Credit Available Subject to Limitation entities
Line 1. Include a list of all property you acquired 4. Investment tax credit
and placed in service during the tax year that 5. Credit for contributions to Idaho youth and
qualifies for the SE-ITC. List each item of property rehabilitation facilities
and its location, your basis in the item, whether the 6. Credit for production equipment using
item is new or used, and the date placed in service. post-consumer waste

EIN00088 08-14-2024 Page 2 of 3

- 4 -

Enlarge image

Form 83 — Instructions 2024 (continued)

7. Promoter-sponsored event credit If you’re an S corporation or partnership and you’ve
8. Credit for Idaho research activities elected to be an ABE, this amount also needs to be
distributed to the shareholders or partners on their
9. Broadband equipment investment credit
Form ID K-1.
Line 12. Enter the amount of your Idaho income
Credit Carryover
tax. This is the computed tax before subtracting any
credits or adding the permanent building fund tax or Line 29. The amount of credit available that exceeds
any other taxes. the total credit allowed on the current year tax return
can be carried forward up to 14 tax years. Enter this
Line 13. Enter the credit for income tax paid amount on Form 44, Part I, line 6 in the Carryover
to other states from Form 39R, Form 39NR, or column.
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 08-14-2024 Page 3 of 3

PDF file checksum: 4226924591

(Plugin #1/10.13/13.0)