Idaho Recapture of Idaho Small Employer New Jobs Tax Credit

Recapture of Idaho Small Employer New Jobs Tax Credit
Form 85R, Recapture of Idaho Small Employer New Jobs Tax Credit and Instructions 2023
Form 85R
Recapture of Idaho Small Employer
New Jobs Tax Credit
Names as shown on return

Social Security number or EIN

You must report recapture if one or both of the following occurred:
1. You didn’t meet the following tax incentive criteria:
•	 Capital investment in new plant and building facilities of at least $500,000,
•	 Increased employment by at least 10 new employees, each earning at least $19.23 per hour and receiving
health benefits, and
•	 For new employment increases above the 10 new employees, the average wages of the additional new
employees are at least $15.50 per hour worked. See the instructions for who’s included in this calculation.
2. You didn’t maintain the level of qualifying employees for which you earned the credit for five full years after the end
of the project period.

Computation of Recaptured Credit
1.Year that small employer new
jobs tax credit was earned ................
2.Average number of qualifying
employees for the year the
credit was earned ...........................
3.Idaho small employer new
jobs tax credit earned ...................
4.If you didn’t meet the tax
incentive criteria, enter
100% and go to line 6 .....................
5.From the Recapture Worksheet
below, enter the recapture
percentage for the earliest year
during the recapture period that the
average number of qualifying
employees fell below the average
number of employees listed
on line 2 .............................................
6.Tentative recaptured credit.
Multiply line 3 by line 4 or 5 .............

A

B

C

D

E

1
2
3
4

5
6

7.Add line 6, columns A through E ...............................................................................................................

7

8.Pass-through share of credit recapture from S corporations, partnerships, trusts, or estates ..................

8

9.Add lines 7 and 8 ......................................................................................................................................

9

10.Credit recapture distributed to shareholders, partners, or beneficiaries ................................................... 10
11.Enter the portion of original credit not used to offset any tax. Don’t enter more than line 9.
The amount on this line reduces the carryover available to the current year ........................................... 11
12.Add lines 10 and 11 .................................................................................................................................. 12
13.Recapture of small employer new jobs tax credit. Subtract line 12 from line 9.
Enter here and on Form 44, Part II, line 5. Don’t use this amount to reduce current
year’s small employer new jobs tax credit computed on Form 85 ............................................................ 13

Recapture Worksheet – If you didn’t meet the tax incentive criteria, don’t use this section.

Date project period ended

Recapture Period - Five years
after the end of the project period

Tax
Year

Average number of qualifying employees working
primarily within the project site during the year

Recapture
percentage

First year after the end of the project period

100%

Second year after the end of the project period

80%

Third year after the end of the project period

60%

Fourth year after the end of the project period

40%

Fifth year after the end of the project period

20%

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Form 85R — Instructions
Recapture of Idaho Small Employer New Jobs Tax Credit
General Instructions
Use Form 85R to compute the increase in tax and
reduction to credit carryover for the recapture of the
small employer new jobs tax credit (SE-NJTC).
If you claimed the SE-NJTC in an earlier year and
don’t meet the tax incentive criteria, recapture all the
SE-NJTC claimed in the earlier years.
Also, compute recapture if you don’t maintain the
level of qualifying employees for which you earned
the credit for five full years from the date the project
period ends.
S corporations, partnerships, trusts, and estates that
pass through SE-NJTC to shareholders, partners,
or beneficiaries must provide Form ID K-1 reporting
the recapture amount and including 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 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.

Line 3. Enter the amount of SE-NJTC credit earned for
the year listed on line 1. This amount is on Form 85,
line 10 for the applicable year.
Line 4. If recapture is required because you didn’t
meet the tax incentive criteria, enter 100% on line 4.
Leave line 5 blank and continue with line 6.
Line 5. If recapture is required because you didn’t
maintain the required number of qualifying employees
for five full years from the date the project period
ended, you’ll need to complete the Recapture
Worksheet at the bottom of the form. Enter on line 5
the recapture percentage for the earliest tax year from
the Recapture Worksheet that the average number of
qualified employees working primarily in the project
site fell below the average number of qualifying
employees listed on line 2.
Line 6. Multiply line 3 by the larger of the percentages
listed on line 4 or 5. If there’s no percentage listed on
line 5, multiply line 3 by the percentage on line 4.

Instructions are for lines not fully explained on the form.

Line 8. Enter the amount of recapture of SE-NJTC
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 49 or Form ID
K-1, Part XI, line 74 (Composite/ABE).

Idaho Small Employer New Jobs Tax Credit
Earned in Prior Years

Line 9. Add lines 7 and 8 to determine the amount of
credit subject to recapture.

Specific Instructions

S corporations, partnerships, trusts, and estates that
have SE-NJTC subject to recapture must complete
lines 1 through 7 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 8. If the only recapture you’re reporting is
from a pass-through entity, skip lines 1 through 7
and begin on line 8.
Computation of Recaptured Credit
Line 1. Starting with the earliest tax year in
Column A, enter each tax year that the SE-NJTC
was earned.
Line 2. Enter the average number of qualifying
employees for the year listed on line 1. This amount
is on Form 85, line 1 for the applicable year.

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Line 10. 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.
Line 11. 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.
Compute the unused portion of the original credit from
Form 85R, line 3 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 9.
Line 13. This is the total increase in tax. Enter it on
this line and on Form 44, Part II, line 5. Don’t use this
amount to reduce your current year’s SE-NJTC from
Form 85.
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Form 85R — Instructions

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.
Recapture Worksheet
Complete the recapture worksheet only if you’re
reporting recapture because you didn’t maintain the
level of qualifying employees on which you earned
the credit for five full years after the end of the
project period. If you must report recapture because
you didn’t meet the tax incentive criteria, don’t
complete the worksheet but instead enter 100% on
line 4 of the form.

(continued)

Recapture period. For each year of the recapture
period, enter the tax year in the first column and the
average number of employees who worked primarily
at the project site in the second column. List this for
each year until the average number of employees
reported for a year falls below the qualifying level of
employment reported on line 2. The first year in the
recapture period that the average number of qualifying
employees falls below the average number of
qualifying employees listed on line 2 is the year when
recapture is required and determines the recapture
percentage.

Project period end date. The project period ends
when the new plant and building facilities for the
project are placed in service, but no later than
December 31, 2030. Enter the earlier of the two
dates.

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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