Form 49 is used to calculate the Idaho investment tax credit (ITC) earned or allowed. Each member of a unitary group of corporations that earns or is allowed the credit must complete
a separate Form 49.
Property Used Both In and Outside Idaho
If property is used both in and outside Idaho, compute the qualified investment for all such property using one of the following methods:
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Percentage-of-use method: Multiply the investment in each asset by a fraction where Idaho use is the numerator and total use is the denominator. Usage can be measured by machine hours, mileage or any other method that accurately reflects the usage, or
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Property factor numerator method: Use the amount included in the Idaho property numerator
for each property.
Carry-Over Periods -
The credit carry-over for property acquired prior to 1990 is limited to five tax years.
- For property acquired after 1989 but prior to tax years beginning in 2000, the credit carry-over is limited to seven tax years unless the credit has not been carried over seven tax years before 2000. If the credit has been carried forward less than seven tax years, and is eligible for carry-over to tax years beginning on or after 2000, the carry-over period is limited to 14 tax years.
- For credit earned in tax years beginning on or after January
1, 2000, the credit carryover is limited to 14 tax years. For purposes of the carryover period, a short tax year counts as one tax year.
Election to Claim Two-Year Property Tax Exemption and Forego Investment Tax Credit
If in 2003 or after, you placed personal property in service that qualifies for the ITC, you may elect to exempt this property from your property tax. You are not eligible for the election if your rate of charge or rate of return is regulated or limited by federal or state law. The exemption from the property tax is for two years. After that time, you must pay any applicable property tax. You cannot claim the ITC for any property that you elect to
exempt from property tax.
The election is available if you had negative Idaho taxable income in the second preceding tax year from the tax year in which the property was placed in service. Negative Idaho
taxable income must have been computed without regard to any carry-over or carry-back of net operating losses.
The election must be made on Form 49E and filed with the operator's statement or personal property declaration. A copy of the election form must be attached to the original income tax return(s) for the tax year(s) in which the property was placed in service.
Recapture
You will be subject to recapture if you sell or otherwise dispose of the property or it ceases to qualify for the ITC before it has been in service for five full years. File Form 49ER if you
claimed the property tax exemption. File Form 49R if you claimed the ITC.
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