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EFO00019p2
09-28-09
Instructions for Idaho Form 85R
GENERAL INSTRUCTIONS the Recapture Worksheet at the bottom of the form. Enter on
line 5 the recapture percentage for the earliest tax year from
Use Form 85R to compute the increase in tax and reduction to the Recapture Worksheet that the average number of qualiied
credit carryover for the recapture of the small employer new jobs employees working primarily in the project site fell below the
tax credit (SE-NJTC). average number of qualifying employees listed on line 2.
If you claimed the SE-NJTC in an earlier year and fail to meet Line 6. Multiply line 3 by the larger of the percents listed on line
the tax incentive criteria, you must recapture all the SE-NJTC 4 or 5. If there is no percent listed on line 5, multiply line 3 by the
claimed in the earlier years. percent on line 4.
Also, you must compute recapture if you do not maintain the Line 8. Enter the amount of recapture of SE-NJTC that is being
level of qualifying employees for which you earned the credit for passed to you from S corporations, partnerships, estates and
ive full years from the date the project period ends. trusts. This amount is reported on Form ID K-1, Part D, line 17.
Attach a copy of Form ID K-1 provided to you.
S corporations, partnerships, estates and trusts that pass
through SE-NJTC to shareholders, partners or beneiciaries Line 9. Add lines 7 and 8 to determine the amount of credit
must provide Form ID K-1 reporting the recapture amount and subject to recapture.
including in Part E, Supplemental Information, details on the
year(s) the credit being recaptured was originally earned. Line 10. If you are a partnership, S corporation, trust or estate,
enter the amount of credit recapture that passed through to
Any resulting tax from recapture of credits claimed in prior years partners, shareholders, or beneiciaries. Do not include any
must be added to the tax otherwise determined in the year recapture on this line for partners, shareholders, or beneiciaries
of recapture. Recapture of credits not claimed in prior years for whom you are paying the tax.
reduces the amount of credit carryover available to the current
year. Line 11. If you did not use all the credit you originally computed
either in the year earned or in a carryover year, you will not have
SPECIFIC INSTRUCTIONS to pay tax from recapture of the amount of the credit you did not
use.
Instructions are for lines not fully explained on the form.
Compute the unused portion of the original credit on a separate
IDAHO SMALL EMPLOYER NEW JOBS TAX CREDIT sheet and enter it on this line. Do not enter more than the tax
EARNED IN PRIOR YEARS from recapture on line 9.
S corporations, partnerships, estates and trusts that have SE- Line 13. This is the total increase in tax. Enter it on this line and
NJTC subject to recapture must complete lines 1 through 7 to on Form 44, Part II, line 5. DO NOT use this amount to reduce
determine the amount of credit recapture. your current year's SE-NJTC from Form 85.
Partners, shareholders and beneiciaries will use the information RECAPTURE WORKSHEET
provided by the partnership, S corporation, trust or estate to
report their pass-through share of the credit to be recaptured on Complete the recapture worksheet only if you are reporting
line 8. If the only recapture you are reporting is from a pass- recapture because you did not maintain the level of qualifying
through entity, skip lines 1 through 7 and begin on line 8. employees on which you earned the credit for ive full years
after the end of the project period. If you must report recapture
COMPUTATION OF RECAPTURED CREDIT because you did not meet the tax incentive criteria, do not
complete the worksheet, but instead enter 100% on line 4 of the
Line 1. Starting with the earliest tax year in Column A, enter form.
each tax year that the SE-NJTC was earned.
Project period end date. The project period ends when the
Line 2. Enter the average number of qualifying employees for new plant and building facilities for the project are placed in
the year listed on line 1. This amount can be found on Form 85, service, but no later than December 31, 2020. Enter the earlier
line 1 for the applicable year. of the two dates.
Line 3. Enter the amount of the SE-NJTC credit earned for the Recapture period. For each year of the recapture period,
year listed on line 1. This amount can be found on Form 85, line enter the tax year in the irst column, and the average number
10 for the applicable year. of employees who worked primarily at the project site in the
second column. This should be listed for each year until the
Line 4. If recapture is required because you did not meet the tax average number of employees reported for a year falls below the
incentive criteria, enter 100% on line 4. Leave line 5 blank and qualifying level of employment reported on line 2. The irst year
continue with line 6. in the recapture period that the average number of qualifying
employees falls below the average number of qualifying
Line 5. If recapture is required because you did not maintain employees listed on line 2 is the year in which recapture is
the required number of qualifying employees for ive full years required and determines the recapture percentage.
from the date the project period ended, you will need to complete
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