Idaho Recapture of Broadband Equipment Investment Credit

Recapture of Broadband Equipment Investment Credit
Form 68R, Recapture of Idaho Broadband Equipment Investment Credit and Instruction 2023
Form 68R
Recapture of Idaho Broadband Equipment
Investment Credit
Names as shown on return

Social Security number or EIN

Part I — Identify Property That Ceased to Qualify as Idaho Broadband Equipment Investment Credit Property
Properties

Property Description

A
B
C
D
E
Part II — Original Idaho Broadband Equipment Investment Credit
A
1.Date property placed in service ....

Properties
C

B

D

E

1

2.Cost or other basis ....................... 2
3.Credit percentage ......................

3

4.Original credit. Multiply line 2
by line 3 ......................................

4

3%

3%

3%

3%

5.Date property ceased to qualify .... 5
6.Number of full years between
the date on line 1 and the
date on line 5 ..............................

6

Part III — Computation of Recapture Tax
7. Recapture percentage from table
in instructions ..............................

7

8.Tentative recapture tax. Multiply
line 4 by line 7 .............................

8

9.Add line 8, columns A through E .......................................................................................................

9

10.Pass-through share of credit recapture from S corporations, partnerships, trusts, or estates .......... 10
11.Add lines 9 and 10 ............................................................................................................................ 11
12.Credit recapture distributed to shareholders, partners, or beneficiaries ........................................... 12
13.Enter the portion of original credit not used to offset any tax. Don’t include the amount of
credit transferred. Don’t enter more than line 11. The amount on this line reduces the
carryover available to the current year. Enter on Form 68, line 7 ..................................................... 13
14.Add lines 12 and 13 .......................................................................................................................... 14
15.Recapture of broadband equipment investment credit. Subtract line 14 from line 11.
Enter here and on Form 44, Part II, line 2. Don’t use this amount to reduce the current
year’s broadband equipment investment credit computed on Form 68 ............................................ 15
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3%

Form 68R — Instructions
Recapture of Idaho Broadband Equipment
Investment Credit
General Instructions
Use Form 68R to compute the increase in tax and
reduction to credit carryover for the recapture of
broadband equipment investment credit. You must
recompute the credit if you earned it in an earlier year
but disposed of the property before the end of the
five-year recapture period. You must also recompute
the credit on any property ceasing to qualify as
investment tax credit (ITC) property. Property moved
from Idaho within the first five years ceases to qualify
as ITC property and is subject to recapture.
Recapture may be necessary when:
•	 An S corporation shareholder’s interest is
reduced by a sale, redemption, or other
disposition of the shareholder’s stock, or when
the corporation issues more shares.
•	 A partner’s proportionate interest in the general
profits of the partnership (or in a particular item
of property) is reduced.
•	 A trust’s, estate’s, or beneficiary’s proportionate
interest in the income of the trust or estate is
reduced.
An entity that passes broadband equipment
investment credit through to its owners must
provide them with a Form ID K-1. The form must
show in Part XII, Supplemental Information, the
recapture amount and include details on the years
the credit being recaptured was originally earned.
Any resulting tax from recapture of credits claimed
in prior years must be added to the tax otherwise
determined in the year of recapture. Recapture
of credits not claimed in prior years reduces the
amount of credit carryover available to the current
year.

Specific Instructions
Instructions are for lines not fully explained on the
form.
Part I — Identify Property That Ceased to
Qualify as Idaho Broadband Equipment
Investment Credit Property
Describe the property you must recompute the
broadband equipment investment credit for. Fill in
lines 1 through 8 in Parts II and III for each property
you’re recomputing the credit on. Use a separate
column for each item. If you have broadband
equipment investment credit recapture on more
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than five items, use an additional Form 68R or
other schedule with the same information as
required on Form 68R.
Part II — Original Idaho Broadband Equipment
Investment Credit
S corporations, partnerships, trusts, and estates that
have credit subject to recapture must complete lines 1
through 9 to determine the amount of credit recapture.
Shareholders, partners, and beneficiaries will use the
information provided by the S corporation, partnership,
trust, or estate to report their pass-through share of the
credit to be recaptured on line 10. If the only recapture
you’re reporting is from a pass-through entity, skip
lines 1 through 9 and begin on line 10.
Line 1. Enter the month, day, and year that the
property was first available for service.
Line 2. Enter the cost or other basis of the property
used to compute the original broadband equipment
investment credit.
Line 4. Multiply line 2 by line 3 to compute the credit
originally earned for each property listed.
Line 5. Enter the month, day, and year the property
ceased to qualify as ITC property.
Line 6. Don’t enter partial years. If the property was
held less than 12 months, enter zero.
Part III — Computation of Recapture Tax
Line 7. Enter the appropriate recapture percentage
from the following table.
If the number of full years
on Form 68R, line 6 is ...

Then the recapture
percentage is...

0
1
2
3
4
5 or more

100
80
60
40
20
0

Line 9. Add all amounts on line 8. If you’ve used
more than one Form 68R or separate sheets to list
additional items you computed an increase in tax on,
write to the left of the entry space “Tax from attached”
and the total tax from the separate sheets. Include the
amount in the total for line 9.

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Form 68R — Instructions

Line 10. Enter the amount of recapture of
broadband equipment investment credit that’s being
passed to you from S corporations, partnerships,
trusts, and estates. This amount is reported on
Form ID K-1, Part VII, line 46 or Form ID K-1, Part
XI, line 71 (Composite/ABE).
If recapture is necessary due to a reduction of
a shareholder’s proportionate stock interest in
an S corporation, reduction in the interest in the
general profits of a partnership, or reduction in the
proportionate interest in the income of the trust or
estate, include that recapture on line 10 as well.
Line 11. Add lines 9 and 10 to determine the
amount of credit subject to recapture.
Line 12. If you’re an S corporation, partnership,
trust, or estate, enter the amount of credit recapture
that passed through to shareholders, partners, or
beneficiaries. Don’t include any recapture on this
line for shareholders, partners, or beneficiaries
you’re paying the tax for.

(continued)

Line 13. If you didn’t use all the credit you originally
computed either in the year earned or in a carryover
year, you won’t have to pay tax from recapture of the
amount of the credit you didn’t use. However, you’ll
pay tax from recapture of credit transferred.
Compute the unused portion of the original credit from
Form 68R, line 4, or that was passed through to you
from an S corporation, partnership, trust, or estate on
a separate sheet, and enter the amount on this line.
Don’t enter more than the tax from recapture on line
11. Don’t include the amount of any credits transferred
that must be recaptured.
Line 15. This is the total increase in tax. Enter it on
this line and on Form 44, Part II, line 2. Don’t use
this amount to reduce your current year’s broadband
equipment investment credit from Form 68.
If you’re an S corporation or partnership and you’ve
elected to be an ABE, this amount also needs to be
distributed to the shareholders or partners on their
Form ID K-1.

Contact us:

In the Boise area: (208) 334-7660 | Toll free: (800) 972-7660
Hearing impaired (TDD) (800) 377-3529
tax.idaho.gov/contact
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