49: Investment Tax Credit and Instructions 2024 (2024)
Idaho · Idaho Tax Commission · Used for tax years 2024
Idaho Form 49 calculates the investment tax credit earned or allowed for 2024. It reports qualified investments, pass-through amounts, credit carryovers, and the limit on the credit allowed against Idaho income tax.
Who files this form
Use Form 49 to calculate the Idaho investment tax credit (ITC) earned or allowed for tax year 2024.
Each member of a unitary group of corporations that earns or is allowed the credit must complete a separate Form 49.
Qualifying property must have a useful life of at least three years and be property you’re allowed to depreciate or amortize. Eligible property includes certain machinery, equipment, and other property used in a trade or business.
What you'll need
Gather these records and include the applicable attachments:
- Detailed property list: Identify each qualifying item acquired and placed in service during the tax year, its location, your basis, whether it is new or used, and the date placed in service. Use the Idaho adjusted basis without bonus depreciation.
- Form 49E: Include applicable forms for investments on which you claimed the property tax exemption.
- Pass-through information: Use Form ID K-1, Part X, and include a list showing each entity’s name, EIN, and your share of new and used qualified investments.
- Carryover calculation: For Part I, line 8a, include Form 49C or a separate schedule computing the carryover.
- Sharing schedules: Include applicable schedules for credit received through unitary sharing or from a co-op, and for amounts shared with unitary affiliates. Corporations claiming ITC must provide a detailed schedule showing each combined-group member’s name, EIN, and ITC used, along with shared investments and carryover calculations.
- Tax return information: Have your Idaho income tax and applicable credits available. The credit for income tax paid to other states comes from Form 39R or Form 39NR.
- Form 49ABE: Include this form if reporting ABE investment tax credit on Part II, line 9.
Common mistakes
- Claiming both benefits for the same property: You can’t claim ITC on property you elected to exempt from property tax.
- Including section 179 expenses: Don’t include property you’re expensing under IRC section 179.
- Exceeding the used-property limit: Part I, line 3, Column B is limited to $150,000.
- Including nonqualifying property: Exclusions include personal-use portions, property not used in Idaho, vehicles under 8,000 pounds GVW, and property previously used by you or an affiliate.
- Sharing credit too soon: Before sharing credit with unitary-group members, you must use it up to the allowable limitation of your tax liability.
- Missing recapture: Compute recapture if property is sold, otherwise disposed of, or stops qualifying before five full years in service. File Form 49R if you claimed ITC, or Form 49ER if you claimed the property tax exemption.
Questions people ask
How is the credit earned calculated?
Multiply the total available qualifying investments in Part I, line 5, Columns A and B by 3%. The credit allowed is subject to the Part II limitation.
Can I carry unused credit forward?
Yes. Credit available that exceeds the credit allowed on the current-year return can be carried forward up to 14 tax years. A short tax year counts as one tax year.
What if I use property both inside and outside Idaho?
Compute the qualified investment using either the percentage-of-use method or the property factor numerator method. For percentage of use, multiply the investment by Idaho use divided by total use. Use may be measured by mileage, machine hours, or another method that accurately reflects use.
Where do I report the allowed credit?
In Part II, line 10, add line 9 to the smallest amount from lines 6, 7, or 8. Carry the result to Form 44, Part I, line 1, in the Credit Allowed column.