Idaho Idaho Broadband Equipment Investment Credit

Idaho Broadband Equipment Investment Credit
Form 68, Broadband Equipment Investment Credit and Instructions 2023
Form 68
Broadband Equipment Investment Credit
Names as shown on return

2023

Social Security number or EIN

Credit Available Subject to Limitation
1. Amount of qualified investments in broadband equipment acquired during the tax year
and approved by the Idaho Public Utilities Commission (PUC). Include a complete list and
approval from the Idaho PUC .....................................................................................................

1

2. Credit earned. Multiply line 1 by 3% .........................................................................................

2

3. Pass-through share of credit from an S corporation, partnership, trust, or estate ......................

3

4. Credit received through unitary sharing. Include a schedule ......................................................

4

5. Credit received by transfer. Include Form 70, Statement of Credit Transfer ...............................

5

6. Carryover of broadband equipment investment credit from prior years ......................................

6

7. Carryover eliminated due to recapture in 2023. Enter the amount from Form 68R, line 13.
Include Form 68R .......................................................................................................................

7

8. Credit distributed to shareholders, partners, or beneficiaries .....................................................

8

9. Credit shared with unitary affiliates .............................................................................................

9

10. Credit transferred to another taxpayer. Include Form 70 ............................................................ 10
11. Total credit available subject to limitations. Add lines 2 through 6,
then subtract lines 7 through 10 .................................................................................................. 11

Credit Limitation
12. Enter the Idaho income tax from your tax return ......................................................................... 12
13. a. Credit for income tax paid to other states .............................................. 13a
b. Credit for contributions to Idaho educational entities ............................. 13b
c. Investment tax credit .............................................................................. 13c
d. Credit for contributions to Idaho youth and rehabilitation facilities ......... 13d
e. Credit for production equipment using post-consumer waste ................ 13e
f. Promoter-sponsored event credit ........................................................... 13f
g. Credit for Idaho research activities ......................................................... 13g
h. Add lines 13a through 13g .................................................................................................... 13h
14. Net income tax after other credits. Subtract line 13h from line 12 .............................................. 14
15. Credit allowable subject to limitation of tax. Enter the smaller of:
a. The amount from line 11 or
b. $750,000 ............................................................................................................................... 15
16. Broadband equipment investment credit allowed. Enter the smaller amount from
line 14 or line 15 here and on Form 44, Part I, line 5 .................................................................. 16

Credit Carryover
17. Total credit available subject to limitations. Enter the amount from line 11 ................................ 17
18. Broadband equipment investment credit allowed. Enter the amount from line 16 ............................. 18
19. Credit carryover to future years. Subtract line 18 from line 17. Enter the amount here
and on Form 44, Part I, line 5 ..................................................................................................... 19
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Form 68 — Instructions
Broadband Equipment Investment Credit
General Instructions
Use Form 68 to calculate the broadband equipment
investment credit earned or allowed. Each member
of a unitary group who earns or is allowed the credit
must complete a separate Form 68.
Qualifying Property
You must obtain an order from the Idaho Public
Utilities Commission (PUC) confirming that
your installed equipment is qualified broadband
equipment.
Qualified broadband equipment is equipment that
qualifies for the investment tax credit and is capable
of transmitting signals at a rate of at least 200,000
bits per second to a subscriber and at least 125,000
bits per second from a subscriber. Also, specific
requirements must be met by:
•	 Telecommunications carriers
•	 Commercial mobile service carriers
•	 Cable or open video system operators
•	 Satellite or wireless carriers
•	 Packet switching equipment
•	 Multiplexing and demultiplexing equipment
The equipment must be used primarily to provide
services to public subscribers in Idaho.
Unitary Sharing
A corporation included as a member of a unitary
group of corporations may elect to share the
broadband equipment investment credit it earns
but doesn’t use with other members of the unitary
group. The corporation must claim the broadband
equipment investment credit to the extent allowable
against its Idaho income tax before it can share the
credit.
Transfer of Credit
A taxpayer who earns the broadband equipment
investment credit and an intermediary may transfer
the credit to another taxpayer. The transferor must
submit Form 70, Statement of Credit Transfer, to the
Tax Commission at least 60 days before the date of
transfer. The Tax Commission will verify the amount
of credit available for transfer and the number of
carryover years.
The transferee may first claim the transferred credit
on the income tax return originally filed during the
calendar year the transfer takes place. However, the
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credit can’t be claimed on a tax return that begins
before January 1, 2001.
The transferee must include a copy of Form 70 with
each income tax return the credit is claimed or carried
over on.
Carryover Periods
The credit carryover is limited to 14 tax years. A
transferee is entitled to the same carryover period that
would have been allowed to the transferor.

Specific Instructions
Instructions are for lines not fully explained on the form.
Credit Available Subject to Limitation
Line 1. Include a list of all property you acquired
during the tax year you’re claiming the broadband
equipment investment credit for. The list should
identify each piece of equipment, your basis in the
item, and the date placed in service. Don’t include
any equipment that was disposed of, that ceased to
qualify, or that was moved from Idaho before the end
of the year.
Also include the approval from the Idaho PUC
that confirms the installed equipment is qualified
broadband equipment.
Line 3. Enter the amount of broadband equipment
investment credit that’s being passed to you from
partnerships, S corporations, estates, or trusts you
have an interest in. This amount is from Form ID
K-1, Part VII, line 41 or Form ID K-1, Part XI, line 65
(Composite/ABE).
Line 4. If you’re a member of a unitary group of
corporations, enter the amount of credit you received
from another member of the unitary group.
Line 5. If you received credit as a result of a transfer
from another taxpayer, enter the amount of credit you
received. Include a copy of Form 70.
Line 6. Enter the carryover from your 2022 Form 68,
line 19.
Line 8. If you’re an S corporation, partnership, trust, or
estate, enter the amount of credit that passed through
to partners, shareholders, or beneficiaries.

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Form 68 — Instructions

Line 9. If you’re a member of a unitary group of
corporations, enter the amount of credit you earned
that you elect to share with other members of your
unitary group. Before you can share your credit, you
must use the credit up to the allowable limitation of
your Idaho income tax.
Corporations claiming the broadband equipment
investment credit must provide a calculation of the
credit earned and used by each member of the
combined group. The schedule must clearly identify
shared credit and the computation of any credit
carryovers.
Line 10. If you transferred credit to another
taxpayer, enter the amount of credit you transferred.
You can only transfer credit that you originally
earned, unless you’re an intermediary.
Credit Limitations
The Idaho broadband equipment credit is limited
to the smaller of $750,000 or the Idaho income
tax after allowing all other tax credits that can be
claimed before it.

2023

(continued)

Line 13a. Enter the credit for income tax paid to
other states from Form 39R, Form 39NR, or Form
66, page 2. This credit is available only to individuals,
estates, and trusts.
Line 13b. Enter the credit for contributions to Idaho
educational entities from the appropriate Idaho income
tax return.
Line 13c. Enter the investment tax credit allowed from
Form 49, Part II, line 9.
Line 13d. Enter the credit for contributions to Idaho
youth and rehabilitation facilities from the appropriate
Idaho income tax return.
Line 13e. Enter the credit for production equipment
using post-consumer waste from the appropriate Idaho
income tax return.
Line 13f. Enter the promoter-sponsored event credit
from the appropriate Idaho income tax return.

The following credits must be applied to the tax
before the broadband equipment investment credit:
1.	 Credit for income tax paid to other states
2.	 Credit for contributions to Idaho educational
entities

Line 13g. Enter the credit allowed for Idaho research
activities from Form 67, line 29.
Line 16. Enter the smaller amount from lines 14 or
15 on line 16. Enter this amount on Form 44, Part I,
line 5, in the Credit Allowed column.
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.

3.	 Investment tax credit
4.	 Credit for contributions to Idaho youth and
rehabilitation facilities

Credit Carryover

5.	 Credit for production equipment using
post-consumer waste
6.	 Promoter-sponsored event credit
7.	 Credit for Idaho research activities
Line 12. Enter the amount of your Idaho income
tax. This is the computed tax before subtracting any
credits or adding the permanent building fund tax or
any other taxes.

Line 19. The amount of credit available that exceeds
the total credit allowed on the current year tax return
may be carried forward up to 14 tax years. Enter this
amount on Form 44, Part I, line 5 in the Carryover
column.

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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