Idaho Idaho S Corporation Income Tax Return

Idaho S Corporation Income Tax Return
Form 41S, S Corporation Income Tax and Instructions 2023
Don’t Staple

8734

Amended Return? Check the box. See
page 1 of the instructions for reasons to
amend and enter the number that applies. ▪

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For calendar year
2023 or fiscal
year beginning

Current business mailing address

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Mo

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Year

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23

State use only

Business name

City

2023

Form 41S
S Corporation Income Tax Return

ZIP Code

State use only

ending

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State

Year

Federal Employer Identification Number (EIN)

NAICS Code

Foreign country (if not U.S.)

Check the type of return ▪
Regular ▪
Composite ▪
Affected business entity
If a federal audit was finalized this year, enter the latest year audited ...................... ▪
Is this an inactive corporation or nameholder corporation? .........................................................................
Yes
a. Were federal estimated tax payments required? ....................................................................................
Yes
b. Were estimated tax payments based on annualized amounts? .............................................................
Yes
Is this a final return? ....................................................................................................................................
Yes
If yes, check the proper box below and enter the date the event occurred
Enter new EIN
Withdrawn from Idaho
Dissolved
Merged or reorganized
Is this an electrical or telephone utility? .......................................................................................................
Yes
Did the ownership change during the year?................................................................................................
Yes
Enter the amount of total qualified investments for investment tax credit acquired during this tax year ..... ▪
Enter the amount of broadband equipment investment credit earned this tax year .................................... ▪
Enter the amount of credit for Idaho research activities earned this tax year ............................................. ▪
Reserved .....................................................................................................................................................
Did you claim the property tax exemption for investment tax credit property acquired this tax year? .........
Yes

Income

Don’t Staple

Day

13.
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16.
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18.

Ordinary income (loss). Form 1120S, page 1 ................................................................................
Net income (loss) from rental real estate activities. Form 1120S, Schedule K ..............................
Net income (loss) from other rental activities. Form 1120S, Schedule K .......................................
Portfolio income (loss). Form 1120S, Schedule K .........................................................................
Other items. See instructions ........................................................................................................
Net distributable income. Add lines 13 through 17 ........................................................................

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13
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15
16
17
18

19.
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22.
23.

Interest and dividends not taxable under Internal Revenue Code. Include a schedule ...............
State, municipal, and local taxes measured by net income. Include a schedule ..........................
Bonus depreciation. Include a schedule .......................................................................................
Other additions .............................................................................................................................
Add lines 18 through 22 ................................................................................................................

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19
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23

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35.

Interest from Idaho municipal securities ...................................................... ▪ 24
Interest on U.S. government obligations. Include a schedule ..................... ▪ 25
Interest and other expenses related to lines 24 and 25................................ ▪ 26
Add lines 24 and 25, then subtract line 26 ....................................................................................
Technological equipment donation ................................................................................................
Allocated income. Include a schedule .......................................................... ▪ 29
Interest and other expenses related to line 29. Include a schedule ............. ▪ 30
Subtract line 30 from line 29 ..........................................................................................................
Bonus depreciation. Include a schedule ........................................................................................
Other subtractions. See instructions ..............................................................................................
Total subtractions. Add lines 27, 28, 31, 32, and 33 ......................................................................
Net business income subject to apportionment. Subtract line 34 from line 23 ..............................

Additions

Subtractions

Continue to page 2. — Include a complete copy of your federal Form 1120S.
Return and payment - Mail to: Idaho State Tax Commission, PO Box 83784 Boise ID 83707-3784
Return only - Mail to: Idaho State Tax Commission, PO Box 56, Boise, ID 83756-0056
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09-11-2023

Page 1 of 2

27
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31
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34
▪ 35

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No
No
No
No

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No
No

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No

Form 41S
36. Net business income subject to apportionment. Enter the amount from line 35 .....................
36
37. Corporations with all activity in Idaho enter 100%. Multistate/multinational corporations
complete and include Form 42; enter the apportionment factor from Form 42, Part I, line 21 .............. ▪
38. Net business income apportioned to Idaho. Multiply line 36 by the percent on line 37 ......................... ▪
39. Income allocated to Idaho. See instructions .......................................................................................... ▪
40. Affected business entity (ABE) Idaho net operating loss carryover ....................................................... ▪
41. Reserved ...............................................................................................................................................
42. Income reported on entity’s composite return from Form PTE-12. Include Form PTE-12 .................... ▪
43. ABE income. If electing ABE, add lines 38 and 39 then subtract line 40 ............................................... ▪
Check if ABE has exempt members. See instructions .................................................... ▪
44. Idaho income tax. 5.8% of either line 42 or 43 ...............................................................................

Credits

37
38
39
40
41
42
43

▪ 50
▪ 51

Minimum tax. See instructions if the S corporation owes federal tax ............................................
Permanent building fund tax. See instructions ..............................................................................
Total tax from recapture of income tax credits from Form 44, Part II, line 6. Include Form 44 ......
Fuels tax due. Include Form 75 .....................................................................................................
Sales/use tax due on untaxed purchases (online, mail order, and other) ..............................
Tax from recapture of qualified investment exemption (QIE). Include Form 49ER ........................
Total tax. Add lines 49 through 55. If ABE has exempt entity members. See instructions .............
Underpayment interest. Include Form 41ESR ...............................................................................
Donation to Opportunity Scholarship Program ..............................................................................
Add lines 56 through 58 .................................................................................................................

60.
61.
62.
63.
64.

Estimated tax payments. If made under other EINs, provide EINs, amounts, and rollforwards .......... ▪ 60
Tax paid by ABE on your behalf .......................................................................................................... ▪ 61
Special fuels tax refund
Gasoline tax refund
Include Form 75 ....
62
Tax Reimbursement Incentive credit. Include certificate ................................................................ ▪ 63
Total payments and other credits. Add lines 60 through 63 ..........................................................
64

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70.

Tax due. If line 59 is more than line 64, subtract line 64 from line 59 ............................................ ▪
Penalty ▪
Interest from the due date ▪
Enter total .......................
Nonrefundable credit from a prior year return. See Form 44 instructions ..................................... ▪
Total Due. Add lines 65 and 66, then subtract line 67 ................................................................. ▪ 68
Overpayment. If line 59 is less than line 64, subtract line 59 from line 64 ................................... ▪
Refund ......... ▪
Apply to 2024 ......... ▪
See instructions.

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Payments and Other Credits

Amended Return Only. Complete this section to determine your tax due or refund.
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74.
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Total due (line 68) or overpayment (line 69) on this return ...........................................................
Refund from original return plus additional refunds ..........................................................................
Tax paid with original return plus additional tax paid .....................................................................
Amended tax due or refund. Add lines 71 and 72, then subtract line 73 ......................................

%

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49

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Refund or Payment Due

(continued)

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45. Credit for contributions to Idaho educational entities ................................... ▪ 45
46. Credit for contributions to Idaho youth and rehabilitation facilities .............. ▪ 46
47. Total business income tax credits from Form 44, Part I, line 10.
Include Form 44 ...........................................................................................
47
48. Total credits. Add lines 45 through 47. If ABE has exempt entity members. See instructions .......
49. Subtract line 48 from line 44. If line 48 is greater than line 44, enter zero ....................................

Other Taxes

2023

20

52
53
54
55
56
57
58
59

65
66
67
69

71
72
73
74

Within 180 days of receiving this return, the Idaho State Tax Commission may discuss this return with the paid preparer identified below.
Under penalties of perjury, I declare that to the best of my knowledge and belief this return is true, correct, and complete. See instructions.
Signature of officer

Date

Sign ▪
Here Title

Officer phone number

Paid preparer’s signature

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Address
EFO00028

09-11-2023

Preparer’s EIN, SSN or PTIN

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Preparer’s phone number
Page 2 of 2

Form 41S — Instructions
S Corporation Income Tax Return

2023

Instructions are for lines not fully explained on the form.

Question 1 Return Type. Check the appropriate box.

An S corporation must provide each shareholder
with an Idaho Form ID K-1. This form shows the
shareholder’s proportionate share of Idaho additions,
subtractions, and credit information. For shareholders
who aren’t individuals, the Form ID K-1 also provides
apportionment factor information that’s needed to
complete their Idaho income tax return. Form ID
K-1 also identifies the proportionate share of gross
income to help determine Idaho filing requirements of
individual shareholders.

A composite return is a single return filed by an entity
on behalf of its eligible owners. An affected business
entity is an S corporation that elects to be taxed at
the entity level. Include Form ABE, Affected Business
Entity Election with your return. If the entity checks the
ABE box and an authorized person signs the return, no
election form is necessary. If the person who signs the
return isn’t authorized by the entity, the signatures of all
members must be provided on Form ABE.

Include all Form ID K-1s and a complete copy of
federal Form 1120S, including all federal Schedule
K-1s, with the Idaho Form 41S.

Rounding
Round the amounts on the return to the nearest whole
dollar. Round down if under 50 cents, round up if 50
cents or more.

Heading
File the 2023 return for calendar year 2023 or a
fiscal year that begins in 2023. For a fiscal year, fill
in the tax year space at the top of the form.
Write your business name, address, and federal
Employer Identification Number (EIN) in the space
provided. Don’t include the dash when entering your
EIN. Also, provide your NAICS (North American
Industry Classification System) code, listed as the
business activity code on your federal return.

Amended Return
You can use this form as an original return or an
amended return.
If you’re filing this form as an amended return, check
the box at the top of the form. Enter the number from
the following list that best describes your reason for
amending.
1.	 Federal Audit
2.	 Federal Amended
3.	 Other – Include an explanation
Complete the entire form using the corrected amounts.

Questions 1 – 12
Mark the appropriate boxes and provide the
requested information. Answer each question or the
return will be considered incomplete. Incomplete
returns delay processing. Unanswered questions in
this section will be assumed to be a “no.”
EIN00098

09-11-2023

See additional information including Forms PTE-12 and
PTE-01 on our Pass-through Entity Guidance page at
tax.idaho.gov/pte.
Question 2 Federal Audit. If a federal audit was
finalized during the tax year, enter the most recent tax
year covered in the audit.
Question 3 Inactive or Nameholder Corporations.
Check the “Yes” box if the S corporation is authorized to
transact business in Idaho but has no business activity
and no income attributable to Idaho.
Question 4 Estimated Tax Payments.
a.	 Check the “No” box if the corporation wasn’t
required to make federal estimated tax payments
in 2023.
b.	 Check the “Yes” box if your estimated tax payments
were based on annualized amounts.
Question 5 Final Return. If this is the corporation’s
final return for Idaho, check the box that explains the
reason and enter the date the event occurred. Enter
the new federal EIN if the corporation was merged or
reorganized.
Question 6 Electrical or Telephone Utility. If this
return is for an electrical or telephone utility, check the
“Yes” box.
Question 7 Ownership Change. Check the “Yes” box
if a shareholder’s interest was terminated or if a new
shareholder acquired an interest in the corporation.
Question 8 Total Qualified Investments. Enter the
amount from Form 49 or Form 49ABE, line 3, columns
a and b. This is the total qualified investments for the
investment tax credit that the corporation acquired during
the year.
Question 9 Broadband Equipment Investment Credit.
Enter the amount from Form 68, line 2. This is the
broadband equipment investment credit the corporation
earned for the tax year.
Page 1 of 8

Form 41S — Instructions
Question 10 Credit for Idaho Research Activities.
Enter the amount from Form 67, line 16. This is the
credit for Idaho research activities the corporation
earned for the tax year.
Question 12 Property Tax Exemption. Check the
“Yes” box if you elected the property tax exemption
on personal property that qualifies for the ITC.
Include a copy of your Form 49E.

Income
Line 16 Portfolio Income
Enter your net portfolio income or loss from
Form 1120S, Schedule K, lines 4, 5a, 6, 7, and 8a.
Line 17 Other Items
Enter your other items from Form 1120S, Schedule K.
Include any other income, loss, or deductions (such as
Section 179 or charitable contributions) required to be
reported separately to shareholders from the federal
Form 1120S, Schedule K.

Additions
Line 19 Interest and Dividends Not Taxable Under
Internal Revenue Code (IRC)
Enter the interest and dividends net of applicable
amortization received or accrued from obligations of
any state or political subdivision excluded from federal
income under the provisions of the IRC.
Line 20 State, Municipal, and Local Taxes
Enter the total of all state, municipal, and local taxes
measured by net income that have been paid or
accrued during the tax year, minus any refunds that
have been included in federal income. Include taxes
paid on built-in gains and excess net passive income.
Include a schedule of all taxes deducted on the
federal return.
Line 21 Bonus Depreciation
If you claimed bonus depreciation for federal purposes
for property acquired before 2008 or after 2009:
•	 Complete a separate federal Form 4562 or
detailed computation for Idaho depreciation
purposes as if the special depreciation allowance
hadn’t been claimed.
•	 Compute the Idaho adjusted basis and any gains
or losses from the sale or exchange of property
using the Idaho depreciation amounts.
•	 If the federal depreciation (including gains and
losses) is more than the Idaho depreciation
(including gains and losses), include the
difference as an addition on this line; otherwise,
enter the difference on line 32.
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09-11-2023

2023 (continued)

Don’t enter any amounts from property acquired during
2008 and 2009.
Line 22 Other Additions
Enter any miscellaneous Idaho additions. If you have
separately stated items that must be added back,
include the amount. Include a schedule identifying each
addition.
Include on this line any amounts excluded from
taxable income for funds received according to the
emergency rental assistance program established under
Public Law 116-260 for COVID-19 relief.

Subtractions
Line 24 Interest From Idaho Municipal Securities
Enter interest income from securities issued by the state
of Idaho and its political subdivisions, if included on
line 20.
Line 25 Interest on U.S. Government Obligations
Idaho doesn’t tax interest income from U.S. government
obligations. Deduct any U.S. government interest
included in federal income. Examples of U.S.
government obligations include:
•	 Banks for Cooperatives
•	 Federal Farm Credit Banks
•	 Federal Financing Bank
•	 Federal Homeowners Loan Bank
•	 Federal Intermediate Credit Bank
•	 Federal Land Bank
•	 Guam
•	 Puerto Rico
•	 Student Loan Marketing Association
•	 Tennessee Valley Authority Bonds
•	 Territory of Alaska
•	 Territory of Hawaii
•	 Territory of Samoa
•	 U.S. Series EE and HH Bonds
•	 U.S. Treasury Bills and Notes
•	 Virgin Islands
Idaho taxes interest income from the Federal National
Mortgage Association (FNMA) and the Government
National Mortgage Association (GNMA).
If you have interest income from a mutual fund that
invests in both nonexempt securities and exempt
U.S. government securities, you can deduct the
portion of the interest earned that’s attributable to
direct U.S. government obligations. The mutual fund
must identify the amount for it to be deductible.
Page 2 of 8

Form 41S — Instructions
Line 26 Interest Expense Offset
Complete the following computation to calculate the
interest expense offset.
1a. Interest expense. Total interest
expense deducted in determining
federal income ........................................
b
 . Interest expense disallowed under IRC
Sections 265 and 291 ............................
c. Interest expense from a pass-through
entity .......................................................

Divide line 2 by line 3 .............................
Multiply line 1e by line 4. Enter
amount on line 26 .................................

g. Intercompany interest expense .............
h. Total interest expense. Subtract
lines e, f, and g from line d .....................

%

Items that qualify for this deduction are limited
to computers, computer software, and scientific
equipment or apparatus manufactured within five
years of the date of donation. The amount deducted
can’t reduce Idaho taxable income to less than zero.
Any unused deduction can’t be carried to another
year.
Line 29 Allocated Income
Enter the amount of nonbusiness income. Include
a schedule detailing the source of the income
and explaining why the income was classified as
nonbusiness.
Line 30 Nonbusiness Expense Offset
Add back expenses included in computing federal
income that are related to the production of allocated
nonbusiness income listed on line 29.

09-11-2023

2a. Interest expense. Total interest
expense deducted in determining
federal income ........................................
b. Interest expense disallowed under
IRC Sections 265 and 291 .....................
c. Interest expense from a pass-through
entity .......................................................
e. Interest expense included in line 1 ........
f. Interest expense on line 26 attributable
to tax-exempt income .............................

Line 28 Technological Equipment Donation
Enter the lesser of cost or fair market value of
technological equipment donated to one or more
of the following Idaho educational institutions or
libraries located in Idaho:
•	 Public or nonprofit private elementary or
secondary school
•	 Public or nonprofit private college or university
•	 Public library or library district

EIN00098

1. Expenses directly related to
nonbusiness income ..............................

d. Subtotal. Add lines a through c ..............

d
 . Intercompany interest expense .............
e
 . Total interest expense. Add lines a
through c and subtract line d .................
2. Total tax-exempt income (interest on
qualifying obligations of the United
States and the state of Idaho, its cities,
and political subdivisions) ......................
3. Total income. ..........................................
4.
5.

2023 (continued)

3.
4.

Total nonbusiness income .....................

5.
6.

Divide line 3 by line 4 .............................
Multiply line 2h by line 5. This is
the interest expense prorated to
nonbusiness income ..............................
Other indirect expenses related to
both business and nonbusiness
income ....................................................

7.

8.
9.

Total income. ..........................................
%

Multiply line 7 by line 5 ...........................
Add lines 1, 6, and 8. Enter amount
on line 30 ................................................

Line 32 Bonus Depreciation
If you claimed bonus depreciation for federal purposes
for property acquired before 2008 or after 2009:
•	 Complete a separate federal Form 4562 or detailed
computation for Idaho depreciation purposes as
if the special depreciation allowance hadn’t been
claimed.
•	 Compute the Idaho adjusted basis and any gains
or losses from the sale or exchange of property
using the Idaho depreciation amounts.
•	 If the federal depreciation (including gains and
losses) is less than the Idaho depreciation
(including gains and losses), include the difference
as a deduction on this line; otherwise, enter the
difference on line 21.
Don’t enter any amounts for property acquired during
2008 and 2009.
Line 33 Other Subtractions
Enter any miscellaneous Idaho deductions. Include
any deductions from separately stated items
you’re required to report except for deductions not
Page 3 of 8

Form 41S — Instructions
allowed to S corporations when paying the tax for
shareholders. Include a schedule identifying each
deduction.
Include any amounts included in net distributable
income, line 18 for funds received or loans forgiven
according to Public Laws 116-136, 116-139, and
116-142 for COVID-19 relief.
Line 37 Apportionment Factor
If all the activity is in Idaho, enter 100%. If the S
corporation has multistate/multinational operations,
enter the apportionment factor from Form 42, Part I,
line 21. Include Form 42.
Line 38 Net Business Income Apportioned to Idaho
Multiply line 36 by the percent on line 37.
Line 39 Income Allocated to Idaho
Enter the amount of nonbusiness income allocated
to Idaho minus the nonbusiness expense offset
from line 30 that applies to this income. Include a
schedule detailing the source of the income allocated
to Idaho.
If the amounts on lines 38 and 39 are being
distributed to shareholders and will be reported on a
return other than a composite or ABE return, do not
complete lines 40 through 44.
Line 40 Affected Business Entity (ABE) Idaho Net
Operating Loss (NOL) Carryover
Enter the total Idaho NOL carryover amount for the
ABE. Include Form 56 or a schedule showing the
application of the loss.
If the S corporation isn’t making the ABE election,
don’t enter anything on this line. Any unused NOL
flows through to the shareholders.
Line 42 Income Reported on Entity’s Composite
Return from Form PTE-12
Enter the total composite income reported on
Form PTE-12 for all nonresident individual owners.
This amount should be the total Idaho distributable
income for all shareholders on Form PTE-12 with
filing code “C”.
Line 43 ABE Income
Check the box if the ABE has any exempt entity
members and subtract their share of Idaho income
from the total affected business income reported on
lines 38 and 39 minus line 40. Enter the difference
on this line. An exempt entity means an entity that’s
a member of the ABE and is exempt from income tax
under Idaho Code.

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09-11-2023

2023 (continued)

Credits
Except for the Tax Reimbursement Incentive credit and
the investment tax credit earned by an S corporation
while a former C corporation, credits earned by the S
corporation pass through to each shareholder based on
that shareholder’s proportionate share of S corporation
income or loss. When an S corporation has a fiscal
year-end other than that of the shareholder, the credit
passes through in the same period that the shareholder
reports the S corporation income or loss for federal tax
purposes.
The S corporation must provide each shareholder
with an Idaho Form ID K-1. This form shows the
shareholder’s proportionate share of credits earned,
credits subject to recapture, and contribution information
needed to calculate certain credits. Each shareholder
uses this information to determine the amount of Idaho
credit allowed, recapture required, and credit carryovers
to report on the shareholder’s Idaho income tax return.
Credits reported by each shareholder are subject to the
limitations applicable to that shareholder. Include copies
of Form ID K-1 with this return for the year when the
credit is earned.
If an individual shareholder’s portion of the income
is taxed on the S corporation’s return, the tax can be
offset by that shareholder’s proportionate share of
credits. Credits applied to this tax are computed based
on the credit limitations applicable to corporations.
For example, if an S corporation pays the tax for
three individual shareholders, the amount of credit for
contributions to educational institutions is the lesser of
the following amounts:
•	 50% of the three shareholders’ share of the amount
donated
•	 10% of the tax computed for the three
shareholders, or
•	 $5,000
Credits allowed to a shareholder that aren’t used to
offset that shareholder’s tax can’t be used to offset the
tax computed for other shareholders. The broadband
equipment investment credit can be transferred to
another taxpayer rather than used by the taxpayer who
earns the credit.
To claim a credit you acquired through a transfer, include
a copy of the Form 70, Idaho Statement of Credit
Transfer, with each return you’re claiming a transferred
credit on.
Line 45 Credit for Contributions to Idaho
Educational Entities
Donations made by an S corporation to a qualified
educational entity can qualify for a tax credit. Donations
of goods or services don’t qualify.
Page 4 of 8

Form 41S — Instructions
Composite Return
If the S corporation pays the tax for one or more
nonresident individual shareholders, determine each
shareholder’s proportionate share of the following
amounts and enter the total of these amounts on
this line.
The credit is limited to the smallest of:
•	 One-half of the amount donated
•	 10% of the tax on line 44, or
•	 $5,000
Don’t enter the total credit earned by the S corporation
if the S corporation isn’t paying the tax for all
shareholders.
ABE Return
The credit is limited to the smallest of:
•	 One-half of the amount donated
•	 10% of the tax on line 44, or
•	 $5,000
Enter the total credit earned by the ABE
A qualified educational entity includes:
•	 A nonprofit corporation, fund, foundation,
research park, trust, or association organized
and operated exclusively for the benefit of Idaho
colleges and universities
•	 A nonprofit, private, or public Idaho school
(elementary, secondary, or higher education) or
its foundation
•	 Idaho education public broadcast system
foundations
•	 The Idaho State Historical Society or its
foundation
•	 An Idaho public library or its foundation
•	 An Idaho library district or its foundation
•	 An Idaho public or private nonprofit museum
•	 The Idaho Commission for Libraries
•	 Idaho Commission on Hispanic Affairs
•	 Idaho Commission for the Blind and Visually
Impaired
•	 Idaho Council on Developmental Disabilities
•	 Idaho State Independent Living Council
•	 Idaho STEM Action Center
•	 Idaho Council for the Deaf and Hard of Hearing
•	 Medical residency programs or support
organizations devoted to training residents in
Idaho

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09-11-2023

2023 (continued)

Line 46 Credit for Contributions to Idaho Youth
and Rehabilitation Facilities
An S corporation can claim this credit if it donated cash
or goods to the following:
•	 Qualified center for independent living
•	 Youth or rehabilitation facility or its foundation, or
•	 Nonprofit substance abuse center licensed by the
Idaho Department of Health and Welfare
Composite Return
If the S corporation is paying the tax for one or more
nonresident individual shareholders, determine each
shareholder’s proportionate share of the following
amounts and enter the total of these amounts here.
The credit is limited to the smallest of:
•	 One-half of the amount donated
•	 10% of the tax on line 44
•	 $500, or
•	 The tax on line 44 minus the amounts on line 45
and Form 44, Part I, line 1
Don’t enter the total credit earned by the S corporation if
the S corporation isn’t paying the tax for all shareholders.
ABE Return
The credit is limited to the smallest of:
•	 One-half of the amount donated
•	 10% of the tax on line 44
•	 $500, or
•	 The tax on line 44 minus the amounts on line 45
and Form 44, Part I, line 1
Enter the total credit earned by the ABE
The qualified youth or rehabilitation facilities and their
foundations are:
•	 Anchor House
•	 The Arc, Inc., Boise
•	 The Children’s Home Society of Idaho, Inc., Boise
•	 The Children’s Village, Inc., Coeur d’Alene
•	 Dawn Enterprises, Inc., Blackfoot
•	 Development Workshop, Inc., Idaho Falls
•	 Gem Youth Services, Emmett
•	 Hope House, Inc., Nampa
•	 Idaho Drug Free Youth, Inc., Coeur d’Alene
•	 Idaho Elks Rehabilitation Hospital, Inc., Boise
•	 Idaho Youth Ranch
•	 Kinderhaven, Sandpoint
•	 Learning Lab, Inc., Boise
•	 Magic Valley Rehabilitation Services, Inc.,Twin Falls
•	 New Day Products, Inc., Pocatello
Page 5 of 8

Form 41S — Instructions
•	
•	
•	
•	
•	
•	
•	
•	
•	
•	

Northwest (North Idaho) Children’s Home
Opportunities Unlimited, Inc., Lewiston
Panhandle Special Needs, Inc., Sandpoint
Project P.A.T.C.H. (Planned Assistance for
Troubled Children)
Shepherd’s Home, Inc., McCall
Transitional Employment Services for the
Handicapped, Coeur d’Alene
Walker Center, Gooding
Winchester Occupational Workshop, Winchester
Witco Inc., Caldwell
Women’s and Children’s Alliance

The following are the qualified centers for
independent living:
•	 Disability Action Center Northwest, Moscow and
Coeur d’Alene
•	 Living Independence Network Corporation, Boise
and Twin Falls
•	 Living Independently For Everyone, Inc., Blackfoot,
Idaho Falls and Pocatello
Line 47 Total Business Income Tax Credits
Composite Return
If the S corporation pays the tax for one or more
nonresident individual shareholders, determine
each shareholder’s proportionate share of the total
business income tax credits allowed from Form 44,
Part I, line 10 and enter the total of these amounts
here. Don’t enter the total credit earned by the
S corporation if the S corporation isn’t paying the tax
for all shareholders. Include Form 44.
ABE Return
Enter the total credits earned by the ABE.
Line 48 Total Credits
If the ABE has any exempt entity members, subtract
their share of Idaho credits from the total ABE credits
reported on lines 45 through 47. Enter the difference
on this line.

Other Taxes
Line 50 Minimum Tax
The minimum tax of $20 is required for each
corporation:
•	 That transacts business in Idaho
•	 Is registered with the Idaho Secretary of State
to do business in Idaho, or
•	 Is exercising its corporate franchise in Idaho
This includes an S corporation. The $20 minimum
tax isn’t required to be paid by a:
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•	 Nonproductive mining corporation
•	 Corporation not organized for profit that isn’t
required to pay federal tax on unrelated business
income
•	 Homeowners’ association filing Form 1120-H and
having no federal taxable income
•	 Corporation under the protection of Public
Law 86-272
If the S corporation owes federal tax on excess net
passive income or net recognized built-in gains,
compute the Idaho tax using the following instructions:
•	 Compute the Idaho tax on excess net passive
income by multiplying 5.8% by the lesser of
Idaho apportioned excess net passive income or
Idaho apportioned taxable income. See federal
Form 1120S instructions. Include a copy of the
computations.
•	 Compute the Idaho tax on net recognized built-in
gains by multiplying 5.8% by the Idaho apportioned
net recognized built-in gain. See federal
Form 1120S, Schedule D instructions. Include a
copy of the computations.
•	 In computing the Idaho net recognized built-in gain,
any bonus depreciation additions and subtractions
should be included in the calculation. The
apportionment factor for the year of sale should be
used in the calculation.
•	 If the corporation was previously a C corporation
with credit carryover, the credit can be used to
offset all or part of the tax.
If the total tax computed is more than $20, draw a line
through the 20 printed on the form. Enter on this line the
total Idaho tax on excess net passive income and net
recognized built-in gains minus applicable income tax
credit carryovers. Credit limitations apply. The total tax
before credits can’t be less than $20.
If the ABE tax computed is more than $20, draw a line
through the 20 printed on the form. Enter on this line
the total ABE tax minus applicable income tax credits.
Credit limitations apply. The total ABE tax before credits
can’t be less than $20.
Line 51 Permanent Building Fund (PBF) Tax
The following are required to pay the $10 PBF:
•	 A corporation required to file an Idaho income tax
return. This includes:
‚	 Homeowners’ associations
‚	 Inactive or nameholder corporations, and
‚	 Nonproductive mining corporations registered
with the Idaho Secretary of State to do
business in Idaho
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Form 41S — Instructions
•	 Each corporation in the unitary group that’s
required to file an Idaho income tax return
•	 An S corporation required to pay tax on excess
net passive income or net recognized built-in
gains. An S corporation must pay for each
individual included in the composite return.
A corporation under the protection of Public
Law 86-272 isn’t required to pay the PBF tax.
An S corporation electing to be an ABE must pay
the PBF tax for each member that is an Idaho
nonresident.
If all income/loss of the entity is distributed to or
otherwise reported on the income tax return of
another taxpayer, the PBF doesn’t apply.
Line 52 Total Tax From Recapture of Income Tax
Credits
Composite Return
If the S corporation is paying the tax for one or more
nonresident individual shareholders, include on this
line those shareholders’ proportionate share of the
total tax from recapture of income tax credits from
Form 44, Part II, line 6. Include Form 44.
ABE return
Enter the total tax from recapture of income tax
credits from Form 44, Part II, line 6. Include Form 44.
Line 53 Fuels Tax Due
If you buy gasoline, aircraft fuel or special fuels
(diesel, propane, or natural gas) without paying the
fuels tax and later use this fuel in licensed vehicles
or aircraft, you owe fuels tax. Add the amounts on
Form 75, Section IV, lines 3 and 4 and enter the total
here. Include Form 75.
Line 54 Sales/Use Tax Due
If you purchased an item from an out-of-state seller
(including internet, catalog, radio, and TV purchases)
and the seller didn’t collect sales tax on that
purchase, you must pay the use tax directly to the
Tax Commission. Multiply the total amount of those
purchases by 6% (.06).
If you computed use tax on Form 75, add it to the use
tax on other purchases and enter the total here.
If you have an Idaho sales or use tax account, don’t
enter your sales or use tax on this line, but continue
to report the tax on these purchases on your sales
and use tax returns.
Line 55 Tax From Recapture of Qualified
Investment Exemption (QIE)
If you’ve claimed the QIE for property tax on property
that no longer qualifies before the end of the five-year
recapture period, you must recapture part or all
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2023 (continued)

of the property tax benefit. Enter the amount from
Form 49ER, Part III, line 18. Include Form 49ER.
Line 56 Total Tax
If the ABE has any exempt entity members, subtract their
share of Idaho total tax from recapture of income tax
credits from the total ABE tax from recapture of income
tax credits reported on line 52. Enter the difference plus
the amounts on lines 49, 50, 51, 53, 54 and 55 on this
line.
Line 57 Underpayment Interest
Use Form 41ESR, Part I, Underpayment of Estimated
Tax, to determine if there’s an underpayment of
any estimated tax payments. Enter the amount of
underpayment interest from Form 41ESR, Part II,
line 24. Include Form 41ESR.
If this is an amended return, enter the amount from the
original return.
Line 58 Donation to Opportunity Scholarship
Program
You can make a voluntary donation to the Idaho
Opportunity Scholarship Program. The amount
designated will either reduce your refund or increase
your tax due. Your choice to donate can’t be changed;
you can’t get a refund later.
Contributions help provide need-based scholarship
funds to Idaho high school graduates who attend
approved higher education institutions in Idaho. For
more information visit the Idaho Opportunity Scholarship
Program website at boardofed.idaho.gov/scholarships/
Idaho-opportunity-scholarship.

Payments and Other Credits
Line 60 Estimated Tax Payments
Enter the total amount of estimated tax payments made
for tax year 2023 from the following forms:
•	 Form 41ES, Estimated Tax Payment/Extension
of Time Payment and
•	 The amount applied from your 2022 return
•	 Don’t include PTE-01 payments here
Line 61 Tax Paid by ABE on Your Behalf
If the S corporation is a member in an ABE, enter
the amount of tax paid by the ABE (upper entity)
on this S corporation’s behalf. Include a copy of
Form ID K-1s with your return.
Line 62 Special Fuels and Gasoline Tax Refund
The special fuels (diesel, propane, or natural gas) tax
refund is available to those who use the fuel for heating
or in off-highway equipment and have paid the tax on
the special fuels purchased. Enter the amount from
Form 75, Section IV, line 2. Include Form 75.
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Form 41S — Instructions
The gasoline tax refund is available to those who buy
and use gasoline in off-highway equipment or auxiliary
engines. Enter the amount from Form 75, Section IV,
line 1. Include Form 75.
Line 63 Tax Reimbursement Incentive Credit
Enter the total credit allowed from the Idaho
Reimbursement Incentive Certificate. Include a copy
of the certificate with the return.

Refund or Payment Due
Line 66 Penalty and Interest
Penalty and interest are computed on the tax on
line 65 minus the underpayment interest on line 57
and the donation amount on line 58.
Penalty: Idaho law provides penalties for not filing
tax returns by the due date, not paying tax due
on time, and not prepaying enough on extension
returns. For more information or to calculate a
penalty, see our Penalties and Interest page at
tax.idaho.gov/penalties.
Interest: We charge interest on the amount of tax
due from the due date until paid in full. The rate for
2024 is 6%.

Line 67 Nonrefundable Credit From a Prior Year
Return
If you were denied a refund from an overpayment of
tax on a prior year return because of the three-year
statute of limitations, you may be eligible to take
a credit for the amount. See Idaho Form 44 for
calculation of your credit and include it with your
return.
Line 70 Refund/Apply to 2024
Refund
Enter the amount of your overpayment from line 69
that you want refunded to you. Refunds of less than
$1 won’t be issued. You have three years from the
return’s due date (not including extensions) to claim a
refund. Refunds will be reduced by unpaid Idaho tax
liabilities and can be applied to unpaid liabilities owed
to other agencies.
The agency or party seizing the refund must send you
notice of the action. Questions about a refund seizure
should be directed to the agency or party that initiated
the claim for seizure.
Apply to 2024
If you’re filing an original return, subtract the amount
you want to refund from line 69. Any difference will
be applied to your 2024 tax and won’t be refunded.

2023 (continued)

Amended Return Only
Complete lines 71 through 74 only if you’re filing this
return as an amended return.
Line 71 Total Due or Overpayment on This Return
If the total due shown on line 68 is greater than zero,
enter the amount here as a positive amount.
If line 68 is zero, enter the amount of overpayment from
line 69 here as a negative amount.
Line 72 Refund from Original Return Plus Additional
Refunds
Enter the total refund amount from previous returns for
this tax year here as a positive amount.
Line 73 Tax Paid with Original Return Plus
Additional Tax Paid
Enter the total due paid from previous returns for this tax
year here as a positive amount. Don’t include penalty,
interest, Form 51 estimated payments, withholding, or
unpaid tax.
Line 74 Amended Tax Due or Refund
Add lines 71 and 72 then subtract line 73. A positive
amount is your amended tax due. A negative amount is
your amended refund.

Signature
An authorized individual must sign the return on behalf
of the corporation.

Tax Preparer
Check this box if you paid a tax preparer to complete
your return, and you’re authorizing the Tax Commission
to discuss your return with the paid preparer identified
on your return.
You’re also authorizing the paid preparer to:
•	 Give the Tax Commission any information that’s
missing from your return, and
•	 Call the Tax Commission for information about
the processing of your return or the status of your
refund or payments
You’re not authorizing the paid preparer to receive
any refund check, bind you to anything including any
additional tax liability or otherwise represent you before
the Tax Commission. This authorization is valid for
up to 180 days from the date the Tax Commission
receives the return. If you want the Tax Commission
to contact you instead of your preparer, leave the box
blank.

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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