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F
O
R IDAHO SMALL EMPLOYER
M EFO0001183 2009
08-12-09
INVESTMENT TAX CREDIT
Name(s) as shown on return Social Security Number or EIN

QUALIFYING FOR THE CREDIT
You may claim the small employer investment tax credit if you have certiied on Form 89SE that you will meet the following tax incentive
criteria at the project site during the project period:
1. Capital investment in new plant and building facilities of at least $500,000,
2. Increased employment by at least 10 new employees who each earn at least $19.23 per hour and receive health beneits, and
3. For new employment increases above the 10 new employees, the average wages of the additional new employees is at least
$15.50 per hour worked. See the instructions for who is included in this calculation.

If you have not iled Form 89SE with the Tax Commission or have been notiied that you do not qualify for the small employer
incentives, you do not qualify for this credit. Complete Form 49 for any investments that qualify for the regular investment tax credit.
CREDIT AVAILABLE SUBJECT TO LIMITATION
1. a. Amount of qualiied investments acquired during the tax year. Attach a complete list of qualiied
investments .............................................................................................................................................. 1a
b. Amount of bonus irst-year depreciation claimed on qualiied investments acquired during the tax year 1b
2. Amount of investments for which you claimed the property tax exemption. Attach Form 49E .................... 2
3. Subtract lines 1b and 2 from line 1a. This is the amount of qualiied investments on which you may earn
the small employer investment tax credit ...................................................................................................... 3
4. Credit earned. Multiply line 3 by 3.75% ....................................................................................................... 4
5. Pass-through share of credit from a partnership, S corporation, estate or trust. Attach Form ID K-1 .......... 5
6. Credit received through unitary sharing. Attach a schedule ......................................................................... 6
7. Carryover of small employer investment tax credit from prior years ............................................................. 7
8. Carryover eliminated due to recapture in 2009. Enter the amount from Form 83R, line 13.
Attach Form 83R ........................................................................................................................................... 8
9. Credit distributed to partners, shareholders or beneiciaries ........................................................................ 9
10. Credit shared with unitary afiliates ............................................................................................................... 10
11. Total credit available subject to limitations. Add lines 4 through 7 and subtract lines 8 through 10 ............. 11
If you are claiming the credit for qualifying new employees, compute the limitation on Form 55,
CREDIT LIMITATIONS then complete lines 27 through 29 on this form.
If you are not claiming the credit for qualifying new employees, complete lines 12 through 29.
12. Enter the Idaho income tax from your tax return ........................................................................................... 12
13. Credit for tax paid to other states ........................................................................ 13
14. Credit for contributions to Idaho educational entities .......................................... 14
15. Investment tax credit ........................................................................................... 15
16. Credit for contributions to Idaho youth and rehabilitation facilities ...................... 16
17. Credit for production equipment using postconsumer waste .............................. 17
18. Promoter sponsored event credit ........................................................................ 18
19. Credit for Idaho research activities ..................................................................... 19
20. Broadband equipment investment credit ............................................................ 20
21. Incentive investment tax credit ............................................................................ 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 smallest amount
from lines 23, 24, or 25 here and on Form 44, Part I, line 8 ........................................................................ 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 or from Form 55, Part III, line 23 ......................................... 28
29. Credit carryover to future years. Subtract line 28 from line 27. Enter the amount here and
on Form 44, Part I, line 8 ............................................................................................................................. 29

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EFO00011p2
08-12-09 Instructions for Idaho Form 83

GENERAL INSTRUCTIONS ● The portion of property used for personal use
● Used property in excess of $150,000
Form 83 is used to calculate the Idaho small employer ● Horses
investment tax credit (SE-ITC) earned or allowed. Each member
of a unitary group of corporations that earns or is allowed the Idaho Exceptions to IRC Sections 46 and 48
credit must complete a separate Form 83. Idaho law speciically excludes the following property from
qualifying for the Idaho ITC:
The SE-ITC is allowed for property that qualiies for the 3%
investment tax credit (ITC). If you are claiming the SE-ITC, you ● Property not used in Idaho, and
may not also claim the ITC on the same property. ● Vehicles under 8,000 pounds gross weight.
QUALIFYING TAXPAYERS Property Used Both In and Outside Idaho
To qualify for the SE-ITC, you must certify by iling Form 89SE If property is used both in and outside Idaho, compute the
that you will meet the tax incentive criteria at the project site qualiied investment for all such property using one of the
during the project period. If you have not iled Form 89SE with following methods:
the Tax Commission, or you have been notiied that you do not
qualify for the small employer incentives, you may not claim this 1. Percentage-of-Use Method - Multiply the investment in each
credit. If you do not qualify for the SE-ITC, you may be eligible to asset by a fraction where Idaho use is the numerator and
claim the ITC. See Idaho Form 49. total use is the denominator. Usage can be measured by
machine hours, mileage or any other method that accurately
QUALIFYING PROPERTY relects the usage.
If you are a qualifying taxpayer, property that would qualify for 2. Property Factor Numerator Method - Use the amount
the ITC qualiies for the SE-ITC. The property does not have to included in the Idaho property numerator for each property.
be located at the project site to qualify. However, it does have to
be placed in service during the project period. CARRYOVER PERIODS
SE-ITC that was earned but not used against tax may be carried
Property that qualiies for the ITC generally follows the deinition forward for 14 tax years. For purposes of the carryover period, a
of qualiied property found in the Internal Revenue Code (IRC), short tax year counts as one tax year.
Sections 46 and 48 as in effect prior to 1986. The property
must have a useful life of three years or more and be property ELECTION TO CLAIM TWO-YEAR PROPERTY TAX
for which you are allowed the deduction for depreciation or EXEMPTION AND FOREGO INVESTMENT TAX CREDIT
amortization in lieu of depreciation. Qualifying property includes If you placed personal property in service that qualiies for the
the following property used in a trade or business: ITC, you may elect to exempt this property from your property
tax. You are not eligible for the election if your rate of charge or
● Tangible personal property - machinery and equipment rate of return is regulated or limited by federal or state law. The
● Other tangible property - property used as an integral part of exemption from the property tax is for two years. After the two
manufacturing, production, extraction, or furnishing transpor- years you must pay any applicable property tax. You cannot
tation, communications, or utility services, or research facili- claim the SE-ITC for any property that you elect to exempt from
ties and bulk storage facilities used in connection with those property tax.
businesses
● Elevators and escalators The election is available if you had negative Idaho taxable
● Single purpose agricultural or horticultural structures income in the second preceding tax year from the tax year
● Qualiied timber property in which the property was placed in service. Negative Idaho
● Petroleum storage facilities taxable income must have been computed without regard to any
● Qualiied broadband equipment as approved by the Idaho carryover or carryback of net operating losses.
Public Utilities Commission
The election must be made on Form 49E and iled with the
Nonqualifying Property operator's statement or personal property declaration. A copy
Property that does not qualify includes: of the election form must be attached to the original income tax
● Buildings and their structural components (this property may return(s) for the tax year(s) in which the property was placed in
qualify for the small employer real property improvement tax service.
credit - see Idaho Form 84)
● Property used in lodging facilities that rent 50% or more of RECAPTURE
their lodging units for periods of 30 days or longer, such as You must compute recapture if you sell or otherwise dispose of
apartment houses or rental homes. (Does not apply to hotels the property or it ceases to qualify for the SE-ITC before it has
and motels that rent more than half their units for periods of been in service for ive full years.
less than 30 days.) Nonqualifying property includes property
used in the living quarters, lobby furniture, ofice equipment, Also, you must compute recapture if you claimed the SE-ITC
and laundry and swimming pool facilities, but excludes certain in an earlier year and fail to meet the tax incentive criteria you
coin-operated machines. certiied to on Idaho Form 89SE.
● The cost of property expensed under Section 179, IRC
● Property subject to 60-month amortization File Form 83R if you claimed the SE-ITC. File Form 49R if you
● Used property not acquired by purchase claimed the ITC or Form 49ER if you claimed the property tax
● Property that is either nondepreciable or has a useful life of exemption.
fewer than three years

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EFO00011p3 Form 83 - Page 2
08-12-09

SPECIFIC INSTRUCTIONS 1. Credit for tax paid to other states
2. Credit for contributions to Idaho educational entities
Instructions are for lines not fully explained on the form. 3. Investment tax credit
4. Credit for contributions to Idaho youth and rehabilitation
CREDIT AVAILABLE SUBJECT TO LIMITATION facilities
Line 1a. Attach a list of all property you acquired during the tax 5. Credit for production equipment using postconsumer waste
year that qualiies for the SE-ITC. The list should identify what 6. Promoter sponsored event credit
each item of property is, your basis in the item and the date 7. Credit for qualifying new employees
placed in service. Do not include any property placed in service 8. Credit for Idaho research activities
before the date the project period began. 9. Broadband equipment investment credit
10. Incentive investment tax credit
Line 1b. Enter the amount of bonus irst-year depreciation you
deducted on qualiied investments acquired during the tax year. Line 12. Enter the amount of your Idaho income tax. This is the
You can't claim the SE-ITC on this amount. computed tax before adding the permanent building fund tax or
any other taxes, or subtracting any credits.
Line 2. Enter the amount of qualiied investments for which you
claimed the property tax exemption. This exemption is allowed in Line 13. Enter the credit for tax paid to other states as computed
lieu of earning the SE-ITC. Attach applicable Form(s) 49E. on Form 39R or Form 39NR. This credit is available only to
individuals, estates, and trusts.
Line 5. Enter the amount of the SE-ITC that is being passed
through by partnerships, S corporations, estates or trusts in Line 14. Enter the credit for contributions to Idaho educational
which you have an interest. This amount is reported on Form entities from the appropriate Idaho income tax return.
ID K-1, Part D, line 9. Attach a copy of Form ID K-1 provided to
you. Line 15. Enter the investment tax credit allowed as computed on
Form 49, Part II, line 8.
Line 6. If you are a member of a unitary group, enter the amount
of credit you received from another member of the unitary group. Line 16. Enter the credit for contributions to Idaho youth and
rehabilitation facilities from the appropriate Idaho income tax
Line 7. Enter the carryover computed on your 2008 Form 83, return.
line 29.
Line 17. Enter the credit for production equipment using post-
Line 9. If you are a partnership, S corporation, trust or estate, consumer waste from the appropriate Idaho income tax return.
enter the amount of credit that passed through to partners,
shareholders, or beneiciaries. Line 18. Enter the promoter sponsored event credit from the
appropriate Idaho income tax return.
Line 10. If you are a member of a unitary group, enter the
amount of credit you earned that you elect to share with other Line 19. Enter the credit allowed for Idaho research activities as
members of your unitary group. Before you can share your computed on Form 67, line 29.
credit, you must use the credit up to the allowable limitation of
your tax liability. Line 20. Enter the amount allowed for the broadband equipment
investment tax credit as computed on Form 68, line 18.
Corporations claiming the SE-ITC must provide a calculation of
the credit earned and used by each member of the combined Line 21. Enter the credit allowed for the incentive investment tax
group. The schedule must clearly identify shared credit and the credit as computed on Form 69, line 16.
computation of any credit carryovers.
Line 26. Enter the smaller amount from lines 23, 24, or 25 on
CREDIT LIMITATIONS line 26. Enter this amount on Form 44, Part I, line 8 in the Credit
The SE-ITC is limited to the smaller of $750,000, 62.5% of your Allowed column.
tax liability, or the Idaho income tax after allowing all other tax
credits that may be claimed before the SE-ITC. CREDIT CARRYOVER
Line 29. The amount of credit available that exceeds the total
The following credits must be applied to the tax before the credit allowed on the current year tax return may be carried
SE-ITC: forward up to 14 tax years. Enter this amount on Form 44,
Part I, line 8 in the Carryover column.

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