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Idaho Free Printable Form 49E, Election to Claim the Qualified Investment Exemption from Property Tax in Lieu of Investment Tax Credit and Instructions 2023 for 2024 Idaho Election to claim qualified investment exemption

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Election to claim qualified investment exemption
Form 49E, Election to Claim the Qualified Investment Exemption from Property Tax in Lieu of Investment Tax Credit and Instructions 2023

Form 49E Election to Claim the Qualified Investment Exemption from Property Tax Instead of Investment Tax Credit 2023 Use this form to elect the qualified investment exemption (QIE) from property tax for property placed in service during calendar year 2023. Name Social Security number or EIN If this corporation is included in a combined report, enter the name of the corporation the Idaho income tax return is filed under, if different than above. Name EIN Election — I elect to exempt the following property that was placed in service during calendar year 2023 from property tax for 2024 and 2025. I understand I waive my right to claim the investment tax credit on this property at any time. Once I make the election, I can’t change it. I must recapture the property tax benefit if, during the five-year recapture period, the property no longer qualifies as a qualified investment as defined in Idaho Code section 63-3029B. Loss in Second Preceding Tax Year — To qualify for the QIE, you must have had an Idaho income tax loss without regard to net operating loss carryovers or carrybacks in the second preceding tax year from the income tax year you placed the property in service. If you file income tax returns on a fiscal year basis, see the instructions to determine your qualifying loss years. County assessors can check with the Tax Commission to verify you had a loss in the applicable years. List the ending date of your tax years that ended in calendar year 2023 _________________________ If you had a short-period tax year during calendar year 2023 or during the previous two years, include a statement that includes your tax year ending dates. I elect to claim the QIE on the property listed below. The exemption for used property is limited. See instructions. Asset Asset Description Number (Describe what the asset is, including make, model, and serial number) County in Which Asset Located Date Placed in Service Qualifying Loss Year (List beginning and ending date) New or Original Cost Used to to to to to to to to (If additional space is required, complete Page 2.) Under penalties of perjury I affirm that, to the best of my knowledge and belief, the property listed on Form 49E is qualified investment property as defined in Idaho Code section 63-3029B, and that I haven’t or won’t claim the Idaho investment tax credit on the listed property. Signature Print Contact Name Date Contact Phone Number To elect the QIE, you must include this form with the operator’s statement or personal property declarations filed for 2024. You must also include a copy of your original Idaho income tax returns for the tax years in which the property was placed in service. EFO00031 09-18-2023 Page 1 of 2 Form 49E Asset Asset Description Number (Describe what the asset is, including make, model, and serial number) County in Which Date Placed in Qualifying Loss Year (List beginning and ending date) Asset Located Service 2023 (continued) New or Original Cost Used to to to to to to to to to to to to to to to to to to to to to to to to to to (If you need more space, complete additional pages.) EFO00031 09-18-2023 Page 2 of 2 Form 49E — Instructions Election to Claim the Qualified Investment Exemption from Property Tax Instead of Investment Tax Credit General Instructions Use Form 49E to elect an exemption from property tax for personal property instead of earning the Idaho investment tax credit (ITC) on the property. This exemption is referred to on Form 49E and in these instructions as the qualified investment exemption (QIE). The QIE is allowed for the two calendar years that follow the end of the calendar year that the qualifying property was placed in service. For example, for property placed in service during calendar year 2023, the QIE is available for calendar years 2024 and 2025. If you elect the QIE, you can’t earn the ITC for Idaho income tax purposes on that property. You can’t change your election to claim the QIE on property once you’ve made it. Compute recapture if you sell or otherwise dispose of an item of property that you claimed the QIE on or if the property no longer qualifies during the five-year period starting with the date the property was placed in service. Use Form 49ER to calculate the recapture. Include Form 49E with your operator’s statements or personal property declarations filed for 2024. Include a copy of this form with your original Idaho income tax returns for the income tax years when the property was placed in service. If you submit multiple Forms 49E to one or more assessors, include a copy of each Form 49E with the applicable year’s income tax returns. Qualifying Taxpayers To qualify for the QIE, you must: • Not have your rate of charge or rate of return regulated or limited by federal or state law, and • Have had negative Idaho taxable income in the second preceding income tax year from the income tax year in which you placed the property in service Negative Idaho taxable income is computed for a year before applying any net operating losses from other years that you may be able to carry forward or carry back to that year. Such negative income must coincide with you doing business in Idaho during the same second preceding income tax year from the date you placed the property in service. EIN00031 09-18-2023  2023 To determine whether you had negative Idaho taxable income in the second preceding income tax year, you must go back two income tax years from the income tax year when you placed the property in service. For example, if you file income tax returns on a calendar year basis and you placed property in service during calendar year 2023, you must have had negative Idaho taxable income for the calendar year 2021 to qualify for the election. A short tax year counts as one income tax year. If you file income tax returns on a fiscal year-end basis and in one calendar year you placed property in service in two different fiscal years, you’ll need to determine separately for each fiscal year whether you had negative Idaho taxable income in the second preceding income tax year from the tax year the property was placed in service. For example, you file income tax returns for the fiscal year ending August 31. Assuming you had no short tax years, assets you placed in service from: • January 1, 2023 through August 31, 2023, are assets placed in service during fiscal year ended August 31, 2023. You must have had negative Idaho taxable income for the fiscal year ended August 31, 2021, to elect the QIE on any of these assets. • September 1, 2023 through December 31, 2023, are assets placed in service during fiscal year ended August 31, 2024. You must have had negative Idaho taxable income for the fiscal year ended August 31, 2022, to elect the QIE on any of these assets. If you’re part of a unitary group of corporations filing a combined report for Idaho income tax purposes, you must look to your Idaho taxable income as computed according to Idaho Code section 63-3027 to determine whether you had negative Idaho taxable income in the second preceding tax year. This will be computed by applying your Idaho apportionment factor to the combined income or loss for that year and including your income or loss allocated to Idaho. The following table provides examples of determining the second preceding income tax year. The second and fourth examples show how you determine the second preceding tax year when you have a short tax period that results from a change in income tax years. Page 1 of 4 Form 49E — Instructions 2023 (continued) Tax Year Property Placed in Service Calendar year 2023 First Preceding Tax Year Calendar year 2022 Second Preceding Tax Year Calendar year 2021 Calendar year 2023 Calendar year 2022 Fiscal year beginning Sept. 1, 2022 and ending Aug. 31, 2023 Fiscal year beginning Sept. 1, 2022 and ending Aug. 31, 2023 Fiscal year beginning Sept. 1, 2021 and ending Aug. 31, 2022 Short tax year beginning Jan. 1, 2022 and ending Aug. 31, 2022 Short tax year beginning Feb. 1, 2021 and ending Dec. 31, 2021 Fiscal year beginning Sept. 1, 2020 and ending Aug. 31, 2021 Calendar year 2021 Qualifying Property The following is a brief description of qualifying property. For more detailed information, call the Tax Commission at (208) 334-7660 in the Boise area or toll free at (800) 972-7660. General Information The QIE is available only on property that qualifies for the Idaho ITC. Idaho generally follows the definition of qualified investment credit property found in the Internal Revenue Code (IRC) Sections 46 and 48 as in effect prior to 1986. The property must be used in Idaho the first year it’s placed in service. Qualifying property generally includes: • Tangible personal property – machinery and equipment • Other tangible property ‚ Property used as an integral part of manufacturing, production, extraction, or ‚ Furnishing transportation, communications or utility services, or ‚ Research facilities and bulk storage facilities used in connection with those businesses • Elevators and escalators • Single-purpose agricultural or horticultural structures • Qualified timber property • Petroleum storage facilities • Qualified broadband equipment as approved by the Idaho Public Utilities Commission Items that don’t qualify include: • Buildings and their structural components • Property used in certain lodging facilities • Construction in progress • The cost of property expensed EIN00031 09-18-2023  Denial of QIE If the QIE is denied for all or part of the market value of any property, the county assessor will notify you with the reason for the denial. Specific Instructions Heading Enter the name that’s used on your personal property declaration or operator’s statement. Enter your Social Security number or your federal Employer Identification Number, whichever is applicable, in the space provided. If you were included in a combined report, enter the name of the corporation the Idaho income tax return is filed under and its federal Employer Identification Number. Loss in Second Preceding Tax Year You must have had negative Idaho taxable income not including net operating loss carryovers or carrybacks in the second preceding tax year from the income tax year you placed the property in service. In the space provided, enter the last day of your income tax year that ended in calendar year 2023. For example, if you’re a calendar year taxpayer, enter December 31, 2023. If you’re a fiscal year taxpayer, enter the last day of the fiscal year that ended during 2023. If you had two income tax filing periods that ended during 2023, enter both ending dates. If during calendar year 2023 or the previous two years you had a short-period tax year for income tax purposes, include a statement that lists the ending dates for each income tax filing period during that two-year period. For example, if during 2022 you changed from filing income tax returns on a calendar year basis to filing them on a June 30 year-end basis, include a schedule identifying the tax year ending dates as December 31, 2021, and June 30, 2022. Page 2 of 4 Form 49E — Instructions 2023 (continued) Listing of Property Elected Designate each specific asset and its location you’re claiming the QIE on. Group listings of assets won’t be accepted. If you can’t list all the elected assets on page 1, use additional copies of page 2 as needed. If you didn’t use the asset in Idaho during the first year the property was placed in service, the asset doesn’t qualify. For example, if you purchased the asset in 2021 and used the asset outside of Idaho until moving it to Idaho to use during 2023, the asset won’t qualify for the QIE. Asset Number Enter the asset’s assigned identification number. Qualifying Loss Year Enter the beginning and ending dates of the qualifying loss year. This must be the second preceding income tax year from the income tax year in which the property is placed in service. Asset Description Enter a description of the asset. The description must be detailed enough to identify what the property is and to determine if it qualifies. If the make, model, or serial number isn’t available, include other identifying information that will describe the asset. Asset Location Enter the county where the asset is located. If the property is used in more than one county, enter the home county where the asset is located. If you’re claiming the QIE on used property, notify all counties where you’re claiming the QIE of the amount of used property elected. You can do this in one of two ways: • Include copies of all Forms 49E that list used property to the personal property declaration sent to each county, or • Complete a separate Form 49E that lists only used property, and send that to each county If you’re electing the QIE for property that’s assessed as nonregulated operating property by the Tax Commission, list on Form 49E every county where each asset is located regardless of whether the asset is new or used. Date Placed in Service Enter the date you placed the asset in service. Property is placed in service in the earlier of: • The income tax year in which, under your depreciation practice, the period for depreciation of the property begins, or • The income tax year in which you placed the property in a condition or state of readiness and availability for a specifically assigned function EIN00031 09-18-2023  If you file your income tax returns on a calendar year basis, and you didn’t have any short-period tax years during the previous two years, enter January 1, 2021 to December 31, 2021. If you didn’t have negative Idaho taxable income for 2021, you can’t make the election on property placed in service during 2023. If you file your income tax returns on a fiscal year basis, or you had a short-period income tax year, you may have two different qualifying loss years. Identify the applicable qualifying loss year for each asset. If you’re an S corporation or partnership, your net business income apportioned to Idaho plus the nonbusiness income or loss allocated to Idaho for the second preceding income tax year must be negative. New or Used Indicate whether the asset is new or used. Used Property Qualifying used property is limited to a total cost of $150,000 per income tax year, whether you claim the QIE, the ITC, or a combination of both for that year. In addition, you must have acquired the used property by purchase. If you have used property in excess of $150,000, you must select the specific items on which to claim the QIE. If you select an item, the entire cost must be taken into account unless you’ve exceeded the $150,000 limit. If the $150,000 used property limit is exceeded, the remaining amount of an item selected and any items not selected don’t qualify for the ITC. For example, used assets A, B, C, and D, each costing $70,000, were placed in service. Two of the assets will qualify, and a third asset will partially qualify. You must select which two items qualify and which Page 3 of 4 Form 49E — Instructions 2023 (continued) third item partially qualifies. If you claim the QIE on assets A and B, you may claim a partial QIE on either asset C or D, or you may claim the ITC on asset C or D but only up to $10,000, the remaining amount of the $150,000 used-property limitation. Original Cost Enter the asset’s original cost. This should be the same amount you would list as the purchase price on the Idaho Personal Property Declaration. Include trade-in allowances and all associated costs to acquire and prepare the item for its intended use. Contact us: In the Boise area: (208) 334-7660 | Toll free: (800) 972-7660 Hearing impaired (TDD) (800) 377-3529 tax.idaho.gov/contact EIN00031 09-18-2023  Page 4 of 4
Extracted from PDF file 2023-idaho-form-49e.pdf, last modified September 2023

More about the Idaho FORM 49E Corporate Income Tax TY 2023

We last updated the Election to claim qualified investment exemption in February 2024, so this is the latest version of FORM 49E, fully updated for tax year 2023. You can download or print current or past-year PDFs of FORM 49E directly from TaxFormFinder. You can print other Idaho tax forms here.

Related Idaho Corporate Income Tax Forms:

TaxFormFinder has an additional 65 Idaho income tax forms that you may need, plus all federal income tax forms. These related forms may also be needed with the Idaho FORM 49E.

Form Code Form Name
FORM 49ER Recapture of Qualified Investment Exemption From Property Tax

Download all ID tax forms View all 66 Idaho Income Tax Forms


Form Sources:

Idaho usually releases forms for the current tax year between January and April. We last updated Idaho FORM 49E from the State Tax Commission in February 2024.

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About the Corporate Income Tax

The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.

Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).

Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.

Historical Past-Year Versions of Idaho FORM 49E

We have a total of twelve past-year versions of FORM 49E in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2023 FORM 49E

Form 49E, Election to Claim the Qualified Investment Exemption from Property Tax in Lieu of Investment Tax Credit and Instructions 2023

2022 FORM 49E

Form 49E, Election to Claim the Qualified Investment Exemption from Property Tax Instead of Investment Tax Credit and Instructions 2022

2021 FORM 49E

Form 49E Election to Claim the Qualified Investment Exemption from Property Tax Instead of Investment Tax Credit and Instructions 2021 approved

2020 FORM 49E

Form 49E, Election to Claim the Qualified Investment Exemption from Property Tax Instead of Investment Tax Credit and Instructions 2020

2019 FORM 49E

Form 49E, Election to Claim the QIE from Property Tax Instead of Investment Tax Credit 2019

2017 FORM 49E

Form 49E - Idaho Election to Claim the Qualified Investment Exemption from Property Tax in Lieu of Investment Tax Credit

2016 FORM 49E

Form 49E - Idaho Election to Claim the Qualified Investment Exemption from Property Tax in Lieu of Investment Tax Credit


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