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F
O
R IDAHO SMALL EMPLOYER
M EFO0001785 2009
09-02-09
NEW JOBS TAX CREDIT

Name(s) as shown on return Social Security Number or EIN

QUALIFYING FOR THE CREDIT
You may claim the small employer new jobs 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; however, you may qualify for the credit for qualifying new employees. See Idaho Form 55.
CREDIT AVAILABLE SUBJECT TO LIMITATIONS
1. The average number of qualifying employees during the tax year ............................................................... 1
2. The average number of qualifying employees during the three
preceding tax years ............................................................................................. 2
3. The average number of qualifying employees during the
preceding tax year .............................................................................................. 3
4. Subtract the greater of line 2 or 3 from line 1 and enter the difference. This is
the number of qualifying new employees. The amount must equal or exceed one ..................................... 4
5. Number of qualifying new employees listed on line 4 whose annual salary
during the tax year the credit was earned was:
a. greater than $24.04 per hour worked but
equal to or less than an average rate of $28.85 per hour worked .................. 5a
b. greater than an average rate of $28.85 per hour worked
but equal to or less than an average rate of $36.06 per hour worked ............ 5b
c. greater than an average rate of $36.06 per hour worked but
equal to or less than an average rate of $43.27 per hour worked .................. 5c

d. greater than an average rate of $43.27 per hour worked .............................. 5d
$1,500 Credit
6. Multiply the number on line 5a by $1,500 ...................................................................................................... 6
$2,000 Credit
7. Multiply the number on line 5b by $2,000 ...................................................................................................... 7
$2,500 Credit
8. Multiply the number on line 5c by $2,500 ...................................................................................................... 8
$3,000 Credit
9. Multiply the number on line 5d by $3,000 ...................................................................................................... 9

10. Add lines 6 through 9. This is your total small employer new jobs tax credit earned this tax year ............... 10

11. Pass-through share of credit from a partnership, S corporation, estate or trust. Attach Form ID K-1 ........... 11
12. Credit received through unitary sharing. Attach a schedule .......................................................................... 12
13. Carryover of small employer new jobs tax credit from prior years ................................................................. 13
14. Carryover eliminated due to recapture in 2009. Enter the amount from Form 85R, line 11.
Attach Form 85R ............................................................................................................................................ 14
15. Credit distributed to partners, shareholders or beneiciaries ......................................................................... 15
16. Credit shared with unitary afiliates ................................................................................................................ 16

17. Total credit available subject to limitations. Add lines 10 through 13 and subtract lines 14 through 16 ........ 17

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EFO00017p2
09-02-09
Form 85 - Page 2
If you are claiming the credit for qualifying new employees, compute the limitation on Form 55,
CREDIT LIMITATIONS then complete lines 34 through 36 on this form.
If you are not claiming the credit for qualifying new employees, complete lines 18 through 36.
18. Enter the Idaho income tax from your tax return ............................................................................................ 18
19. Credit for tax paid to other states ........................................................................ 19
20. Credit for contributions to Idaho educational entities .......................................... 20
21. Investment tax credit ........................................................................................... 21
22. Credit for contributions to Idaho youth and rehabilitation facilities ...................... 22
23. Credit for production equipment using postconsumer waste .............................. 23
24. Promoter sponsored event credit ........................................................................ 24
25. Credit for Idaho research activities ..................................................................... 25
26. Broadband equipment investment credit ............................................................ 26
27. Incentive investment tax credit ............................................................................ 27
28. Small employer investment tax credit ................................................................. 28
29. Small employer real property improvement tax credit ......................................... 29
30. Add lines 19 through 29 ................................................................................................................................. 30
31. Tax available after other credits. Subtract line 30 from line 18 ..................................................................... 31
32. 62.5% of tax. Multiply line 18 by 62.5% ....................................................................................................... 32
33. Total credit allowed on current year tax return. Enter the smallest amount from lines 17, 31, or 32
here and on Form 44, Part I, line 10 .............................................................................................................. 33
CREDIT CARRYOVER
34. Total credit available subject to limitations. Enter the amount from line 17 ................................................... 34
35. Credit allowed. Enter the amount from line 33 or Form 55, Part III, line 27 .................................................. 35
36. Credit carryover to future years. Subtract line 35 from line 34. Enter the amount here and
on Form 44, Part I, line 10 ............................................................................................................................. 36

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EFO00017p3
09-02-09
Instructions for Idaho Form 85

If the annual But equal to or
GENERAL INSTRUCTIONS salary is greater less than an Then the credit
Form 85 is used to calculate the Idaho small employer new jobs than … average rate of ... earned is ...
tax credit (SE-NJTC) earned or allowed. Each member of a $24.04 per hour $28.85 per hour $1,500
unitary group of corporations that earns or is allowed the credit
An average rate of
must complete a separate Form 85.
$28.85 per hour $36.06 per hour $2,000
If the project period began during this tax year and didn't cover a An average rate of
period of at least nine months, you don't qualify for the SE-NJTC $36.06 per hour $43.27 per hour $2,500
this year. If you are claiming the SE-NJTC, you can't also claim An average rate of
the credit for qualifying new employees for the same employees. $43.27 per hour $3,000
If you have employees earning at least $15.50 per hour, but less
than $24.05 per hour, complete Form 55.
CARRYOVER PERIODS
QUALIFYING TAXPAYERS The SE-NJTC earned but not used against tax may be carried
To qualify for the SE-NJTC, you must certify by iling Form 89SE forward for 10 tax years. For purposes of the carryover period, a
that you will meet the tax incentive criteria at the project site short tax year counts as one tax year.
during the project period. If you haven't iled Form 89SE with the
Tax Commission, or you have been notiied that you don't qualify RECAPTURE
for the small employer incentives, you can't claim this credit. If You must compute recapture if you don't maintain the required
you don't qualify for the SE-NJTC, you may be eligible to claim level of new employees for ive full years from the date the
the credit for qualifying new employees. See Idaho Form 55. project period ends.
QUALIFYING NEW EMPLOYEES FOR THE SE-NJTC Also, you must compute recapture if you claimed the SE-NJTC
To qualify for the credit, the new employee must: in an earlier year and fail to meet the tax incentive criteria you
certiied to on Idaho Form 89SE.
• Qualify as a new employee for purposes of the small employer
tax incentive criteria discussed above, If you claimed the SE-NJTC and recapture is now required, ile
• Earn more than $24.04 per hour, and Form 85R.
• Have worked a minimum of nine months during the tax year in
which the credit is claimed. SPECIFIC INSTRUCTIONS

CALCULATING THE CREDIT Instructions are for lines not fully explained on the form.
The Employer Quarterly Unemployment Insurance Tax Reports
and the Unemployment Insurance Wage Reports iled with the CREDIT AVAILABLE SUBJECT TO LIMITATION
Idaho Department of Labor are used to compute the number Line 1. Determine the average number of qualifying employees
of employees. However, only those employees who meet the during the tax year by adding the number of qualifying
deinition of “new employee” can be included when computing employees reported for each month on your Idaho Employer
the SE-NJTC. Don't include any employees who don't work Quarterly Unemployment Insurance Tax Reports and dividing
primarily in the project site. You must keep records to support that amount by the number of months of operation during the
the computations. tax year. Don't include any employees who weren't employed
primarily at the project site.
The number of employees employed primarily at the project
site during a tax year is the average of the number of such Line 2. Determine the average number of qualifying employees
employees reported to the Idaho Department of Labor during the during the three preceding tax years by dividing the total of the
12 months of the tax year. If the project period began during the average number of qualifying employees reported on your Idaho
tax year, the number of employees for the year is the average Employer Quarterly Unemployment Insurance Tax Reports for
number actually employed during the months of the project each preceding year by three. If the project period existed less
period. However, you can't earn the credit if the project period than three tax years, use the number of tax years in operation.
didn't cover at least nine months during the irst tax year. These
employees may qualify for the credit the next year. Line 3. Determine the average number of qualifying employees
during the preceding tax year by adding the number of qualifying
The number of qualifying new employees is the increase in the employees reported for each month on your Idaho Employer
number of qualifying employees for the current tax year over the Quarterly Unemployment Insurance Tax Reports and dividing
greater of the following: that amount by the number of months of operation during the
preceding tax year. Enter zero if the project period covered less
• The average number of qualifying employees for the three than nine months the preceding tax year.
preceding tax years, or
• The average number of qualifying employees for the preceding Line 4. No credit is allowed unless the number on this line
tax year. equals or exceeds one. If it is more than one, the number is
rounded down to the nearest whole number.
The number of qualifying new employees must be rounded down
to the nearest whole number. Line 5. To complete lines 5a through 5d, you must be able
to identify each individual who is a qualifying new employee
CREDIT RATES and the annual average salary earned during the tax year by
Each qualifying new employee must be identiied in order to that individual. Enter the number of qualifying new employees
determine the credit allowed, which is based on the annual according to their annual salary earned for the tax year. The
salary of the employee as shown in the following table. amounts listed on lines 5a through 5d can't exceed the number
on line 4.

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EFO00017p4 Form 85 - Page 2
09-02-09
Line 11. Enter the amount of the SE-NJTC that is being passed Line 18. Enter the amount of your Idaho income tax. This is the
through by partnerships, S corporations, estates or trusts in computed tax before adding the permanent building fund tax or
which you have an interest. This amount is reported on Form ID any other taxes, or subtracting any credits.
K-1, Part D, line 11. Attach a copy of Form ID K-1 provided to
you. Line 19. Enter the credit for tax paid to other states as
computed on Form 39R or Form 39NR. This credit is available
Line 12. If you are a member of a unitary group, enter the only to individuals, estates, and trusts.
amount of credit you received from another member of the
unitary group. Line 20. Enter the credit for contributions to Idaho educational
entities from the appropriate Idaho income tax return.
Line 13. Enter the carryover computed on your 2008 Form 85,
line 36. Line 21. Enter the investment tax credit allowed as computed
on Form 49, Part II, line 8.
Line 15. If you are a partnership, S corporation, trust or estate,
enter the amount of credit that passed through to partners, Line 22. Enter the credit for contributions to Idaho youth and
shareholders, or beneiciaries. rehabilitation facilities from the appropriate Idaho income tax
return.
Line 16. If you are a member of a unitary group, enter the
amount of credit you earned that you elect to share with other Line 23. Enter the credit for production equipment using post-
members of your unitary group. Before you can share your consumer waste from the appropriate Idaho income tax return.
credit, you must use the credit up to the allowable limitation of
your tax liability. Line 24. Enter the promoter sponsored event credit from the
appropriate Idaho income tax return.
Corporations claiming the SE-NJTC must provide a calculation
of the credit earned and used by each member of the combined Line 25. Enter the credit allowed for Idaho research activities as
group. The schedule must clearly identify shared credit and the computed on Form 67, line 29.
computation of any credit carryovers.
Line 26. Enter the amount allowed for the broadband equipment
CREDIT LIMITATIONS investment tax credit as computed on Form 68, line 18.
The SE-NJTC is limited to the smaller of 62.5% of your tax
liability or the Idaho income tax after allowing all other tax credits Line 27. Enter the credit allowed for the incentive investment tax
that may be claimed before the SE-NJTC. credit as computed on Form 69, line 16.
The following credits must be applied to the tax before the Line 28. Enter the small employer investment tax credit allowed
SE-NJTC: as computed on Form 83, line 28.
1. Credit for tax paid to other states Line 29. Enter the small employer real property improvement
2. Credit for contributions to Idaho educational entities tax credit allowed as computed on Form 84, line 26.
3. Investment tax credit
4. Credit for contributions to Idaho youth and rehabilitation Line 33. Enter the smallest amount from lines 17, 31, or 32
facilities on line 33. Enter this amount on Form 44, Part I, line 10 in the
5. Credit for production equipment using postconsumer Credit Allowed column.
waste
6. Promoter sponsored event credit CREDIT CARRYOVER
7. Credit for qualifying new employees Line 36. The amount of credit available that exceeds the total
8. Credit for Idaho research activities credit allowed on the current year tax return may be carried
9. Broadband equipment investment credit forward up to 10 tax years. Enter this amount on Form 44, Part
10. Incentive investment tax credit I, line 10, in the Carryover column.
11. Small employer investment tax credit
12. Small employer real property improvement tax credit

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