44: Business Income Tax Credits and Credit Recapture and Instructions 2025 (2025)
Idaho · Idaho Tax Commission · Used for tax years 2025
Idaho Form 44 reports business income tax credits allowed, credit carryovers, and tax from recapture of business income tax credits. It also includes a section to claim a nonrefundable credit from a prior year return.
Who files this form
Include Form 44 with your 2025 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 and you qualify to claim that amount as a nonrefundable credit.
What you'll need
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 credits: Forms 83, 84, or 85, as applicable.
- Employer contributions to an employee’s Idaho college savings account: Form ID-529.
- Credit recapture: Forms 49R, 68R, 83R, 84R, or 85R, as applicable.
For a transferred credit, include a copy of Form 70 with each return claiming the credit.
For the production equipment credit, include a schedule showing your calculations, qualified equipment, waste products, and newly manufactured products. Include a schedule showing carryover calculations as well.
If sharing credits within a combined group, include a schedule identifying the member that earned the credit and the members using it. If applying credits earned as a C corporation against the S corporation’s tax, include a schedule showing that application.
How to file
Complete the applicable parts of Form 44 and include it with your return:
- Part I: Enter credits allowed for the tax year and carryovers remaining at year-end. Add the allowed credits on lines 1 through 9.
- Part II: Enter tax from credit recapture and add lines 1 through 5.
- Part III: Enter the year and amount of each denied refund, any prior-year carryover, and the allowed credit. Completing this section is treated as filing a claim for credit instead of an amended return.
Carry business credit and recapture totals to Form 41. For Forms 41S and 65, follow the instructions for the applicable 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.
The supplied text does not give a mailing address or e-file directions.
Common mistakes
- Reporting the full entity credit when only some owners’ tax is being paid. Don’t enter the total credit or recapture tax on Form 41S or Form 65 if the entity isn’t paying tax for all shareholders or partners.
- Claiming a transferred credit without Form 70. Include a copy with every return claiming the transferred credit.
- Sharing a combined-group credit before using it against the earning corporation’s tax. The corporation that earned the credit must first claim it to the extent allowed against its own tax liability.
- Claiming the promoter-sponsored event credit without the required filing. You must have filed Form ST-124 with the Tax Commission to qualify.
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 acquired through a transfer?
Yes. Include Form 68 and a copy of Form 70 with each return claiming the transferred credit.
When can investment tax credit recapture apply?
If property for which you claimed an investment tax credit stops qualifying before the five-year recapture period ends, you must calculate recapture. This includes property moved outside Idaho. Include Form 49R.
How much prior-year nonrefundable credit can I use?
The Part III credit is limited to tax due on a timely filed return, or tax due plus penalty and interest on a late-filed return. Any remaining credit may be used against tax due in later years.