Idaho Certification for Idaho's Small Employer Tax Incentives

Certification for Idaho's Small Employer Tax Incentives
Form 89SE, Certification for Idaho's Small Employer Tax Incentives
Form 89SE
Certification for Idaho’s Small Employer Tax Incentives
Business name

Federal Employer Identification Number (EIN)

Current business mailing address

Contact person and title

City

State

ZIP code

Phone number of contact person

Qualifying for the Incentives
To claim the Idaho small employer tax incentives, you must certify that you’ve met or will meet all of the following tax
incentive criteria at the project site during the project period:
•	 Capital investment in new plant and building facilities of at least $500,000
•	 Increased employment by at least 10 new employees who each earn at least $19.23 per hour worked and receive
health benefits
•	 For new employment increases above the 10 new employees, the average wages of the additional new
employees is at least $15.50 per hour worked. See instructions for who’s included in this calculation.
The following information is required to certify that the proposed project will meet the small employer tax incentive
criteria during the project period. If you don’t provide the requested information, the Tax Commission may disallow any
tax incentives claimed under the Idaho Small Employer Incentive Act.
1. Description of qualifying project.

2. Estimated/actual start date of project. The start date is the earlier of the date the first physical change to the
project site occurs or the date new employees related to the project site are first employed in Idaho. The start date
can’t be earlier than January 1, 2006.

3. Estimated/actual end date of project. The project period can’t be longer than 10 years or end later than
December 31, 2030.

4. Location of the project sites. Identify the street address for each site. If more than one location, identify the
percent of the investment projected at each site once the project is completed.

5. Estimated/actual number of new jobs created during the project period. For each year in the project period,
enter the tax year followed by the number of new jobs created during that year.
Yr

# of jobs

Yr

# of jobs

Yr

# of jobs

Yr

# of jobs

Yr

# of jobs

Yr

# of jobs

Yr

# of jobs

Yr

# of jobs

Yr

# of jobs

Yr

# of jobs

Total # of jobs
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Form 89SE

(continued)

6. Estimated/actual cost of capital investments in new plant and building facilities. For each year in the project
period, list the actual or projected cost of capital investments in new plant and building facilities.
a. Qualified investment. This is property that generally qualifies for the Idaho investment tax credit, including
computers, equipment, furniture, etc. Enter the tax year followed by the cost of qualified investments placed in
service during that year.
Yr

Amount

Yr

Amount

Yr

Amount

Yr

Amount

Yr

Amount

Yr

Amount

Yr

Amount

Yr

Amount

Yr

Amount

Yr

Amount

Total Amount
b. Buildings and their structural components, including parking garages. Enter the tax year followed by the cost
of buildings and structural components placed in service during that year.
Yr

Amount

Yr

Amount

Yr

Amount

Yr

Amount

Yr

Amount

Yr

Amount

Yr

Amount

Yr

Amount

Yr

Amount

Yr

Amount

Total Amount
7. Total plant and building facilities cost by location.

Certification by Taxpayer
Under penalties of perjury, I declare that to the best of my knowledge and belief this information is true, correct, and complete.
Signature of officer

Date

Title

Phone number of officer

Mail to: Tax Research
Idaho State Tax Commission
PO Box 36
Boise ID 83722

Mail copy to: Idaho Department of Commerce
700 W State St
PO Box 83720
Boise ID 83720-0093

or
Fax to: Tax Research
(208) 334-7690

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07-07-2022

Fax copy to:

Idaho Commerce
(208) 334-2631

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Form 89SE — Instructions
Certification for Idaho’s Small Employer Tax Incentives
General Instructions
File Form 89SE before claiming any incentives
allowed by the Idaho Small Employer Incentive
Act. Include a copy of Form 89SE with your Idaho
income tax return for each tax year that you’re
claiming or carrying over the incentives.
Tax Incentive Criteria
To qualify, you must certify that you’ve met or will
meet all of the following tax incentive criteria at the
project site during the project period:
•	 Invest at least $500,000 in new plant and
building facilities
•	 Increase employment at the project site by
at least 10 new employees who each earn at
least $19.23 per hour worked
•	 If your new employment increased by more
than the 10 new employees, these additional
employees must earn an average of at least
$15.50 per hour worked during your tax year.
Don’t include the wages of employees earning
more than $48.08 per hour.
Project Site
This is the location of new plant and building
facilities owned or leased by the taxpayer. The
project site can be one or more geographic areas
in Idaho but only if 80% or more of the investment
required is located at one of the areas.
Project Period
This is the period of time that begins at the earlier of:
•	 A physical change to the project site or
•	 The first employment of new employees in
Idaho who are related to the activities at the
project site.
The project period can’t begin before January 1, 2006.
The project period ends when all of the project’s
facilities are placed in service but no longer than
10 years or later than December 31, 2030.
New Plant and Building Facilities
This includes property that meets either the
definition of qualifed investment for purposes of
the investment tax credit (ITC) or is a building or a
structural component of a building.
The property must be new property. Used property
doesn’t qualify. New property is property acquired
or constructed by the taxpayer whose original
use begins with the taxpayer after acquisition or
construction. Original use means the first use of the
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property, whether or not that corresponds to the use
of the property by the taxpayer. Property used by the
taxpayer before its acquisition doesn’t qualify.
New Employees
To qualify as a new employee for the tax incentive
criteria an employee must:
•	 Be employed primarily at the project site by the
taxpayer
•	 Have wages subject to Idaho income tax
withholding
•	 Be covered for Idaho unemployment insurance
purposes
•	 Be eligible to receive employer-provided
coverage under a health plan described in Idaho
Code section 41-4703
•	 Be employed on a regular full-time basis
•	 Meet the applicable wage requirements
For this purpose, earnings include income subject to
Idaho income tax withholding but don’t include stock
options or restricted stock grants.
An existing employee of the taxpayer or a related
taxpayer who’s transferred to a new position at the
project site won’t qualify as a new employee unless
the transfer results in a net new job in Idaho.
Once reached, you must maintain the net increase
in employment at the project site for the rest of the
project period.
Tax Incentives
If you’ve met or will meet the tax incentive criteria,
you’re eligible to claim the tax incentives listed in the
table on page 2.
Recapture
If you certify you’ll meet the tax incentive criteria and
then don’t meet that criteria, you’ll be required to
recapture the full amount of any incentives claimed.
You may need to recapture all or a portion of the
incentives if you:
•	 Dispose of an investment in new plant or building
facilities or it no longer qualifies before being held
for five years from the date placed in service
•	 Don’t maintain the required level of employment
for five years from the date the project period
ends or
•	 Don’t use, store or otherwise consume property
that was allowed a sales tax exemption within the
project site for a period of five full years from the
date the property was placed in service.
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Form 89SE — Instructions

(continued)

Small Employer Incentive Act – Idaho Code, Title 63, Chapter 44 and Chapter 6, Section 606A
Incentive

Credit Rate

Limitations

Carryover

Can’t exceed 62.5% of tax
Can’t exceed $750,000 in
any tax year

14 years

Investment Tax Credit (SE-ITC)
Form 83

3.75% on qualified investment that’s placed in service during
the project period anywhere in Idaho. Credit is instead of
earning the 3% ITC.

Real Property Improvement Tax
Credit (SE-RPITC)
Form 84

2.5% on investments in new plant and buildings and structural Can’t exceed $125,000 in
components of buildings that don’t qualify for the ITC and are any tax year
placed in service during the project period at the project site.

14 years

New Jobs Tax Credit (SE-NJTC)
Form 85

Varying credit rate from $1,500 to $3,000 per qualifying new
Can’t exceed 62.5% of tax
employee. Employee must earn a minimum of $24.04 per
hour to qualify, be employed primarily within the project site on
a full-time basis and work a minimum of nine months during
the tax year. (See other requirements under New Employees.)

10 years

Sales Tax Rebate
Form TCR

25% rebate of all sales and use taxes that the taxpayer or its
contractors actually paid on new plant and building facilities
property constructed, located or installed within the project site
during the project period.

Growth Incentive Exemption

County Board of Equalization of county where property that
qualifies for the ITC or RPITC is located can exempt all or part
of the value of the property from property tax.

Specific Instructions
Instructions are for lines not fully explained on the form.
Write your business name, address, federal Employer
Identification Number, contact person and title and the
contact person’s phone number in the space at the top
of the form.
Line 1. Provide a detailed description of the project
that qualifies for the incentives. Include additional
sheets as necessary.
Line 2. Enter the date the project started or will start.
The start date can’t be earlier than January 1, 2006.
The start date is the earlier of the date the first
physical change to the project site is scheduled
to occur or the date new employees related to the
project site will be first employed in Idaho.
Line 3. Enter the date the project ended or is
scheduled to end. This date can’t be longer than
10 years or later than December 31, 2030.
Line 4. For each project site, provide the street
address. Include the percent of the new plant and
building facilities invested in the project that will be
located at each separate location. The total of these
percents must equal 100%.
Line 5. For each year in the project period, enter the
actual or estimated number of new jobs that have
been or will be created within the project site. If a

year listed on the form doesn’t fall within the project
period, leave it blank.
Line 6. For each year in the project period, enter the
actual or estimated costs of capital investment in new
plant and building facilities located within the project
site. If a year listed on the form doesn’t fall within the
project period, leave it blank.
List the cost of property that qualifies for the ITC
in 6a. List the cost of buildings and their structural
components that don’t qualify for the ITC in 6b.
Line 7. For each location in your project site, identify
the total actual or projected cost of new plant and
building facilities. The total of these amounts should
match the sum of the totals for lines 6a and 6b.
Mail original to:
Tax Research
Idaho State Tax Commission
PO Box 36
Boise ID 83722-0410
Or fax original to: (208) 334-7690
Mail copy to:
Idaho Department of Commerce
700 W State St
PO Box 83720
Boise ID 83720-0093
Or fax copy to: (208) 334-2631

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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