- 3 -
|
EFO00044p3
07-28-09
Instructions for Idaho Form 89SE
GENERAL INSTRUCTIONS New Employees
To qualify as a new employee for the tax incentive criteria, an
You must ile Form 89SE prior to claiming any incentives allowed employee must:
by the Idaho Small Employer Incentive Act. A copy of Form
89SE must be attached to your Idaho income tax return for each ● Be employed primarily at the project site by the taxpayer,
tax year in which you are claiming or carrying over the incentives. ● Have wages subject to Idaho income tax withholding,
● Be covered for Idaho unemployment insurance purposes,
TAX INCENTIVE CRITERIA ● Be eligible to receive employer provided coverage under a
health plan described in Idaho Code section 41-4703,
To qualify you must certify that you have met, or will meet, the ● Be employed on a regular full-time basis, and
following tax incentive criteria at the project site during the project ● Meet the applicable wage requirements.
period:
For this purpose, earnings include income subject to Idaho
● Invest at least $500,000 in new plant and building facilities, income tax withholding, but do not include stock options or
● Increase employment at the project site by at least 10 new restricted stock grants.
employees, who each earn at least $19.23 per hour, and
● If your new employment increased by more than the 10 new An existing employee of the taxpayer or a related taxpayer who
employees, these additional new employees must on average is transferred to a new position at the project site will not qualify
earn at least $15.50 per hour worked during your tax year. as a new employee, unless the transfer results in a net new job
Do not include the wages of employees earning more than in Idaho.
$48.08 per hour.
Once reached, the net increase in employment at the project site
Project Site must be maintained for the rest of the project period.
Project site is where new plant and building facilities owned or
leased by the taxpayer are located. The project site can be one TAX INCENTIVES
or more geographic areas in Idaho, but only if 80% or more of
the investment required is located at one of the areas. If you have met, or will meet the tax incentive criteria, you are
eligible to claim the tax incentives listed in the table on page 2.
Project Period
Project period is the period of time that begins at the earlier of: RECAPTURE
● A physical change to the project site, or If you certify you will meet the tax incentive criteria, and then fail
● The irst employment of new employees in Idaho who are to meet the tax incentive criteria, you will be required to recapture
related to the activities at the project site. the full amount of any incentives claimed under the Act.
The project period cannot begin before January 1, 2006. Recapture of all or a portion of the incentives may also be
necessary if you:
The project period ends when the facilities constituting the
project are placed in service, but no longer than 10 years or later ● Dispose of an investment in new plant or building facilities or
than December 31, 2020. it ceases to qualify prior to it being held for ive years from the
date placed in service,
New Plant and Building Facilities ● Do not maintain the required level of employment for ive
New plant and building facilities include property that meets years from the date the project period ends, or
either the deinition of qualiied investment for purposes of ● Do not use, store, or otherwise consume property that was
the investment tax credit (ITC) or is a building or a structural allowed a sales tax exemption within the project site for a
component of a building. period of ive full years from the date the property was placed
in service.
The property must be new property. Used property does not
qualify. New property is property acquired or constructed by the
taxpayer whose original use begins with the taxpayer after such
acquisition or construction. Original use means the irst use to
which the property is put, whether or not that corresponds to
the use of the property by the taxpayer. Property used by the
taxpayer prior to its acquisition does not qualify.
|