Idaho Business Income Tax Credits and Credit Recapture

Business Income Tax Credits and Credit Recapture
Form 44, Business Income Tax Credits and Credit Recapture and Instructions 2023
Form 44
Business Income Tax Credits, Credit Recapture,
and Nonrefundable Credit From a Prior Year Return
Names as shown on return

2023

Social Security number or EIN

Part I — Business Income Tax Credits
Credit Allowed

Carryover

1.Investment tax credit. Include Form 49 ........................................... ▪

1

▪
▪

2.Credit for production equipment using post-consumer waste ......... ▪

2

3.Promoter-sponsored event credit .................................................... ▪

3

4.Credit for Idaho research activities. Include Form 67 ...................... ▪

4

5.Broadband equipment investment credit. Include Form 68 ............. ▪

5

6.Small employer investment tax credit. Include Form 83 .................. ▪

6

7.Small employer real property improvement tax credit.
Include Form 84 ............................................................................... ▪

7

8.Small employer new jobs tax credit. Include Form 85 ..................... ▪

8

▪
▪

9.Credit for employer contributions to employee’s Idaho college
savings account. Include Form ID-529 ............................................ ▪

9

▪

▪
▪
▪

10. Total business income tax credits allowed. Add lines 1 through 9 ... ▪ 10

Part II — Tax from Recapture of Business Income Tax Credits
Tax from recapture of:
1.Investment tax credit. Include Form 49R ......................................................................... ▪

1

2.Broadband equipment investment credit. Include Form 68R ........................................... ▪

2

3.Small employer investment tax credit. Include Form 83R ................................................ ▪

3

4.Small employer real property improvement tax credit. Include Form 84R ....................... ▪

4

5.Small employer new jobs tax credit. Include Form 85R ................................................... ▪

5

6.Total tax from recapture of business income tax credits. Add lines 1 through 5 .............. ▪

6

Part III — Nonrefundable Credit From a Prior Year Return
By completing this section, I am filing my claim for credit.
A
B
C
Year
Nonrefundable
Credit

D

E

F

G

▪
▪

1.Total nonrefundable credit. Add columns A through G ..................................................... ▪

1

2.Carryover from prior year ................................................................................................. ▪

2

3.Add lines 1 and 2. This is your total credit ....................................................................... ▪

3

4.Enter tax due, plus penalty and interest from applicable form ......................................... ▪

4

5.Credit allowed. If line 4 is less than line 3, this is your allowed credit.
If line 4 is more than line 3, enter the amount from line 3 ................................................ ▪

5

6.Credit remaining for future years. Subtract line 5 from line 3.
If the result is less than zero, enter zero........................................................................... ▪

6

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Form 44 — Instructions
Business Income Tax Credits, Credit Recapture,
and Nonrefundable Credit From a Prior Year Return
Part I of Form 44 provides a list of the Idaho
business credits allowed and the credit carryover
amounts.
Part II of Form 44 provides a list of the tax from
recapture of income tax credits.
You must include Form 44 with your return if
you’re claiming any business income tax credits
or have any tax from recapture of income tax
credits.
Forms 41 and 41S
Carry the total of the business income tax credits
allowed and the tax from recapture of income tax
credits to Form 41.
If the S corporation pays the tax for one or
more nonresident individual shareholders, carry
those shareholders’ proportionate share of the
total business income tax credits and tax from
recapture of income tax credits to Form 41S.
Don’t enter the total credit or tax from recapture
if the S corporation isn’t paying the tax for all the
shareholders.
You can use credits earned by a C corporation
before becoming an S corporation to offset
any tax on excess net passive income or net
recognized built-in gains, subject to the credit
limitations. Include a schedule showing the
application of the credit carryovers to the S
corporation’s tax.
Form 65
If the partnership pays the tax for one or more
nonresident individual partners, those partners’
distributive share of the total business credits and
tax from recapture of income tax credits is carried
to Form 65. Don’t include the total credit or tax
from recapture if the partnership isn’t paying the
tax for all the partners.

Part I — Business Income Tax Credits
Part I has two columns: the Credit Allowed
column for the amount of credit allowed for
the tax year and the Carryover column for the
amount of carryover that exists at the end of the
tax year.

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2023

If the corporation files a combined return, the
following credits can be shared with members of
the combined group rather than carried forward
to future years:
•	 Investment tax credit
•	 Credit for Idaho research activities
•	 Broadband equipment investment credit
•	 Small employer income tax credits
The corporation that earned the credit must
claim the credit to the extent allowable against
its tax liability before sharing the credit with other
members. A corporation that receives the credit
through unitary sharing computes the applicable
limitations based on its tax. Any unused credit
remains with the member that earned the credit.
Include a schedule identifying the member earning
the credit and the members using the credit.
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 Form 70, Statement of Credit
Transfer, with each return on which you’re claiming
a transferred credit.
Line 1 Investment Tax Credit (ITC)
If you acquire an asset for use in your business, you
may have earned an ITC.
Credit Allowed. Enter the credit allowed from
Form 49, Part II, line 9.
Carryover. Enter the credit available minus the
credit allowed: Form 49, Part II, line 7 plus line 8,
minus line 9 or Form 49ABE, Part II, line 5 minus
line 6.
Line 2 Credit for Production Equipment Using
Post-consumer Waste
If you bought equipment that manufactures a
product from post-consumer or post-industrial
waste, you may be eligible for a tax credit.
The credit is 20% of your cost to buy qualified
equipment.
Qualified equipment is machinery or equipment
in Idaho with a useful life of three years or more.
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Form 44 — Instructions

2023

(continued)

In addition, 90% of the equipment’s production
must result in products using post-consumer or
post-industrial waste.

swap meets, flea markets, gun shows and fairs.
You must have filed Form ST-124 with the Tax
Commission to qualify for the credit.

Product is any manufactured material that’s
composed of at least 50% of post-consumer
or post-industrial waste and offered for sale.
Product doesn’t include shredded material unless
it’s incorporated directly into the manufacturing
process.

Credit allowed. Enter the smaller of:
•	 $1 for each temporary permit issued during
the tax year, or

Post-consumer or post-industrial waste includes
only glass, paper, or plastic that has been or
would have been disposed of as solid waste. It
doesn’t include radioactive or hazardous waste.
Include a schedule showing your computations,
listing the qualified equipment, identifying the
post-consumer or post-industrial waste products,
and identifying the newly manufactured products.
Credit Allowed. Enter the smallest of:
•	 $30,000
•	 20% of the cost to purchase qualified
equipment plus the amount of credit carried
forward, or
•	 Tax available:
‚	 If filing Form 41, the tax on line 38 minus
the amounts on lines 39, 40, and Form
44, Part I, line 1
‚	 If filing Form 41S, the tax on line 44
minus the amounts on lines 45, 46, and
Form 44, Part I, line 1
‚	 If filing Form 65, the tax on line 42 minus
the amounts on lines 43, 44, and Form
44, Part I, line 1
‚	 If filing Form 66, the tax on line 11 minus
the amounts on Schedule B, lines 2, 3,
and 4 and Form 44, Part I, line 1
Carryover. Enter the amount of credit available
minus the amount allowed. Include a schedule
showing your computations. You may carry
forward the unused portion of the credit up to
seven years.
Line 3 Promoter-sponsored Event Credit
If you issued temporary sales tax permits to
participants of a promoter-sponsored event on
behalf of the Tax Commission, you can claim a
$1 credit for each temporary permit issued during
the tax year. Promoter-sponsored events include
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•	 Tax available:
‚	 If filing Form 41, the tax on line 38 minus
the amounts on lines 39, 40, and Form
44, Part I, lines 1 and 2
‚	 If filing Form 41S, the tax on line 44
minus the amounts on lines 45, 46, and
Form 44, Part I, lines 1 and 2
‚	 If filing Form 65, the tax on line 42 minus
the amounts on lines 43, 44, and Form
44, Part I, lines 1 and 2
‚	 If filing Form 66, the tax on line 11 minus
the amounts on Schedule B, lines 2, 3,
and 4 and Form 44, Part I, lines 1 and 2
Line 4 Credit for Idaho Research Activities
If you incurred expenses for research conducted
in Idaho, you may have earned the credit for Idaho
research activities.
Credit Allowed. Enter the credit allowed from
Form 67, line 27. Include Form 67.
Carryover. Enter the amount of credit carryover to
future years from Form 67, line 30.
Line 5 Broadband Equipment Investment Credit
If you acquired qualified broadband equipment to
use in your Idaho business, you may qualify for
the broadband equipment investment credit. You
also may claim this credit if you acquired the credit
through a transfer.
Credit Allowed. Enter the credit allowed from Form
68, line 16. Include Form 68.
Carryover. Enter the amount of credit carryover to
future years from Form 68, line 19.
Line 6 Small Employer Investment Tax Credit
You can claim this credit if you’ve certified by filing
Form 89SE that you’ve met or will meet the tax
incentive criteria for this credit, and you’ve acquired
an asset for use in your business that otherwise
qualifies for the ITC.

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Form 44 — Instructions

Credit Allowed. Enter the credit allowed from
Form 83, line 26. Include Form 83.
Carryover. Enter the amount of credit carryover to
future years from Form 83, line 29.
Line 7 Small Employer Real Property
Improvement Tax Credit
You can claim this credit if you’ve certified by
filing Form 89SE that you’ve met or will meet the
tax incentive criteria for this credit, and you’ve
acquired real property improvements for use in
your business at the project site during the project
period.
Credit Allowed. Enter the credit allowed from
Form 84, line 24. Include Form 84.
Carryover. Enter the amount of credit carryover
to future years from Form 84, line 27.
Line 8 Small Employer New Jobs Tax Credit
You can claim this credit if you’ve certified by
filing Form 89SE that you’ve met or will meet the
tax incentive criteria for this credit, and you have
qualified new employees at the project site during
the project period.
Credit Allowed. Enter the credit allowed from
Form 85, line 33. Include Form 85.
Carryover. Enter the amount of credit carryover
to future years from Form 85, line 36.
Line 9 Employer Contributions to Employee’s
Idaho College Savings Account
If you contributed to an employee’s Idaho college
savings account, you may qualify for the credit for
employer contributions to an employee’s Idaho
college savings account.
Credit Allowed. Enter the credit allowed from
Form ID-529, line 17. Include Form ID-529.
Carryover. Enter the amount of credit carryover
to future years from Form ID-529, Part III, line 3.

2023

(continued)

Part II — Tax From Recapture of Income
Tax Credits
Line 1 Tax From Recapture of ITC
If you’ve claimed an ITC on property that no
longer qualifies before the end of the five-year
recapture period, you must compute the ITC
recapture. This includes property moved outside
of Idaho.
Enter the amount from Form 49R, Part III, line 15.
Include Form 49R.
Line 2 Tax From Recapture of Broadband
Equipment Investment Credit
If you’ve claimed a broadband equipment
investment credit on property that no longer
qualifies before the end of the five-year recapture
period, you must compute the broadband equipment
investment credit recapture. This includes property
that no longer qualifies for the ITC.
Enter the amount from Form 68R, Part III, line 15.
Include Form 68R.
Line 3 Tax From Recapture of Small Employer
Investment Tax Credit
If you’ve claimed a small employer investment tax
credit on property that no longer qualifies before
the end of the five-year recapture period, you must
compute the small employer investment tax credit
recapture. This includes property moved outside
of Idaho.
You also must compute recapture if you didn’t meet
the tax incentive criteria required to qualify for this
credit at the project site during the project period.
Enter the amount from Form 83R, Part III, line 15.
Include Form 83R.
Line 4 Tax From Recapture of Small Employer
Real Property Improvement Tax Credit
If you’ve claimed a small employer real property
improvement tax credit on property that no longer
qualifies before the end of the five-year recapture
period, you must compute the small employer real
property improvement tax credit recapture.
You also must compute recapture if you didn’t meet
the tax incentive criteria required to qualify for this
credit at the project site during the project period.
Enter the amount from Form 84R, Part III, line 15.
Include Form 84R.

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Form 44 — Instructions

Line 5 Tax From Recapture of Small Employer
New Jobs Tax Credit
If you’ve claimed a small employer new jobs tax
credit and you didn’t maintain the required level of
new employees for the entire five-year recapture
period, you must compute the small employer new
jobs tax credit recapture.
You also must compute recapture if you didn’t meet
the tax incentive criteria required to qualify for this
credit at the project site during the project period.
Enter the amount from Form 85R, line 13. Include
Form 85R.

Part III — 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 that amount. Use this
form to calculate the credit and include it with
your return.

2023

(continued)

Enter the year of the denied refund in the year row
and the amount in the nonrefundable credit row.
Generally, you have 10 years from the original due
date of the tax return to file a claim for credit.
The credit allowed is limited to tax due on a timely
filed return or tax due plus penalty and interest on
a late filed return.
Report the credit allowed on one of the following
forms:
•	 Form 40, line 53
•	 Form 43, line 73
•	 Form 41, line 60
•	 Form 41S, line 67
•	 Form 65, line 63
•	 Form 66, line 32
The remaining credit is the nonrefundable credit
amount minus the credit allowed. The remaining
credit may be used in subsequent years against
tax due.

Claiming a credit on this form is treated as filing
a claim for credit in lieu of filing an amended
return. The credits claimed in this section can
be reviewed as if they were being claimed on an
amended return.

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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