44: Business Income Tax Credits and Credit Recapture and Instructions 2024 (2024)
Idaho · Idaho Tax Commission · Used for tax years 2024
Idaho Form 44 reports business income tax credits allowed, credit carryovers, and tax from recapture of business income tax credits for 2024. It also includes a section to claim nonrefundable credit from a prior year return and calculate any credit remaining for future years.
Who files this form
Include Form 44 with your 2024 return if you’re claiming any business income tax credits or have tax from recapture of income tax credits.
You may also use Part III if a refund of a prior-year tax overpayment was denied because of the three-year statute of limitations. If you qualify, use Form 44 to calculate the credit and include it with your return.
What you'll need
Enter your name as shown on your return and your Social Security number or EIN.
Include the forms that apply to your credits:
- Investment tax credit: Form 49.
- Idaho research activities credit: Form 67.
- Broadband equipment investment credit: Form 68.
- Small employer investment tax credit: Form 83.
- Small employer real property improvement tax credit: Form 84.
- Small employer new jobs tax credit: Form 85.
- Employer contributions to an employee’s Idaho college savings account: Form ID-529.
For recapture, include the applicable Form 49R, 68R, 83R, 84R, or 85R.
Additional schedules or forms may be needed:
- Transferred credit: Include a copy of Form 70 with each return claiming a transferred credit.
- Post-consumer waste production equipment credit: Include a schedule showing your calculations, qualified equipment, waste products, and newly manufactured products. Include calculations for any carryover.
- Credits shared within a combined group: Include a schedule identifying the member that earned the credit and the members using it.
- C corporation credit carryovers applied to an S corporation’s tax: Include a schedule showing how the carryovers apply.
How to file
Include Form 44 and the applicable supporting forms and schedules with your tax return. The supplied text does not give a mailing address or e-file directions.
- Part I: Enter the credit allowed for the tax year and the carryover remaining at year-end. Add the allowed credits on lines 1 through 9 and enter the total on line 10.
- Part II: Enter tax from credit recapture. Add lines 1 through 5 and enter the total on line 6.
- Part III: Enter the year and amount of each denied refund, add any prior-year carryover, and calculate the allowed credit and remaining credit.
Carry the business credit and recapture totals to Form 41. For Forms 41S and 65, follow the instructions for the affected shareholders’ or partners’ shares when the entity makes the ABE election or pays tax for nonresident individuals.
Report the Part III credit allowed on the applicable return: Form 40, line 53; Form 43, line 73; Form 41, line 60; Form 41S, line 67; Form 65, line 63; or Form 66, line 32.
Common mistakes
- Reporting the full entity credit when only some owners’ tax is being paid. Don’t enter the total credit or recapture on Form 41S or Form 65 if the entity isn’t paying tax for all shareholders or partners.
- Sharing credits before using them against the earning corporation’s tax. The corporation that earned a credit must first claim it to the extent allowed against its own tax liability. Any unused credit stays with that corporation.
- Claiming the promoter-sponsored event credit without filing Form ST-124. You must have filed that form with the Tax Commission to qualify.
- Overlooking recapture. Certain credits require recapture if property stops qualifying before the five-year recapture period ends. Small employer credits also require recapture if the required tax incentive criteria were not met. The new jobs credit requires recapture if the required employee level was not maintained for the full five-year period.
Questions people ask
What is the difference between “Credit Allowed” and “Carryover”?
“Credit Allowed” is the amount allowed for the tax year. “Carryover” is the amount remaining at the end of the tax year.
Can I claim a broadband equipment credit transferred to me?
Yes. The instructions allow a taxpayer who acquired the credit through a transfer to claim it. Include Form 68 and a copy of Form 70 with each return claiming the transferred credit.
Do I need an amended return to claim the Part III credit?
Claiming the credit on Form 44 is treated as filing a claim for credit instead of filing an amended return. The credit can still be reviewed as if it were claimed on an amended return.
How much of the Part III credit can I use?
The allowed credit is limited to tax due on a timely filed return, or tax due plus penalty and interest on a late-filed return. Remaining credit may be used against tax due in later years.
How long do I generally have to claim the Part III credit?
Generally, you have 10 years from the tax return’s original due date to file a claim for credit.