Idaho Recapture Of Idaho Investment Tax Credit

Recapture Of Idaho Investment Tax Credit
Form 49R, Recapture of Idaho Investment Tax Credit and Instructions 2023
Form 49R
Recapture of Idaho Investment Tax Credit
Names as shown on return

Social Security number or EIN

Part I — Identify Property That No Longer Qualifies as Idaho Investment Tax Credit Property
Properties

Property Description (Include a detailed schedule)

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

Properties
C

B

D

E

1

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

3

3%

3%

3%

3%

4.Original credit. Multiply line 2
by line 3 ...................................... 4
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 enter more than line 11. This
amount is reported on Form 49C and reduces the credit carryover available to the current year ........ 13
14.Add lines 12 and 13 ........................................................................................................................... 14
15.Tax from recapture of investment tax credit. Subtract line 14 from line 11. Enter here and on
Form 44, Part II, line 1. Don’t use this amount to reduce the current year’s investment
tax credit computed on Form 49 ........................................................................................................ 15
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3%

Form 49R — Instructions
Recapture of Idaho Investment Tax Credit
General Instructions
Use Form 49R to compute the increase in tax and
reduction to credit carryover for the recapture of
investment tax credit (ITC). 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 that no longer qualifies as ITC
property. Property moved from Idaho within the first
five years no longer qualifies 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.
S corporations, partnerships, trusts, and estates
that pass ITC through to the shareholders, partners,
or beneficiaries must provide Form ID K-1 to report
the recapture amount and include in Part XII,
Supplemental Information, details on the years the
credit being recaptured was originally earned.
Add any tax owed from recapture of credits claimed
in prior years to the tax 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 No Longer
Qualifies as Idaho Investment Tax Credit
Property
Lines A through E. Describe the property you must
recompute ITC on. 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 ITC recapture on more than five items, use
an additional Form 49R or other schedule with the
same information as required on Form 49R.
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Part II — Original Idaho Investment Tax 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 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 investment tax 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
no longer qualified 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 49R, 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 49R or separate sheets to list
additional items you computed recapture 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 49R — Instructions

Line 10. Enter the amount of ITC recapture passed
through to you from S corporations, partnerships,
trusts, and estates. This amount is reported on
Form ID K-1, Part X, line 56 or Form ID K-1,
Part XI, line 70 (ABE).
Include on this line any recapture that’s necessary
because of:
•	 A reduction of a shareholder’s proportionate
stock interest in an S corporation, or
•	 A reduction in the interest in the general profits
of a partnership, or
•	 A reduction in the proportionate interest in the
income of a trust or estate
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 on a composite return.

(continued)

Line 13. If you didn’t use all of 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.
Compute the unused portion of the original credit
from Form 49R, 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.
Line 15. This is the total increase in tax. Enter it on
this line and on Form 44, Part II, line 1. Don’t use
this amount to reduce your current year’s ITC from
Form 49.
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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