49ABE: Affected Business Entity Investment Tax Credit Schedule and Instructions 2025 (2025)
Idaho · Idaho Tax Commission · Used for tax years 2025
Form 49ABE is Idaho’s 2025 Affected Business Entity Investment Tax Credit Schedule. It calculates the entity’s available and allowable investment tax credit using qualified investments, prior-year carryovers, pass-through amounts, and Idaho income tax limitations.
Who files this form
Affected business entities (ABEs) use Form 49ABE to calculate their earned or allowable investment tax credit (ITC) for tax year 2025.
What you'll need
Have the entity’s name as shown on its return and its EIN ready. Include these supporting documents, as applicable:
- Qualified property list: List property acquired and placed in service during the tax year. Identify each item, its location, the entity’s basis, whether it is new or used, and the date placed in service.
- Forms 49E: Include applicable forms for investments on which the entity claimed the property tax exemption.
- Carryover schedule: Include Form 49C or a separate schedule computing ITC carried over from prior years.
- Pass-through investment list: For Part I, line 2, identify each S corporation, partnership, trust, or estate by name and EIN, and list the share of new and used qualified investments passed through. These amounts are reported on Form ID K-1, Part X. Do not include S corporations or partnerships that are ABEs on this line.
- Pass-through credit list: For Part I, line 6, identify each ABE or co-op by name and EIN, and list the share of credit passed through. The instructions identify Form ID K-1, Part XI, as the source for credits passed through by other ABEs.
You will also need the entity’s Idaho income tax amount and its credit for contributions to Idaho educational entities to calculate the credit limitation.
Common mistakes
- Including section 179 investments: Do not include investments the entity is expensing under IRC section 179.
- Using bonus depreciation in the basis: Use the Idaho adjusted basis of qualified property computed without bonus depreciation.
- Claiming both benefits on the same investment: The property tax exemption is allowed instead of earning the ITC. Report exempt investments on Part I, line 1b, and include applicable Forms 49E.
- Exceeding the used-property limit: Part I, line 3, Column B is limited to $150,000.
- Putting ABE investments on the wrong line: Do not include S corporations or partnerships that are ABEs on Part I, line 2.
- Using the wrong tax amount: For Part II, line 1, use the entity’s computed Idaho income tax before adding the permanent building fund tax or other taxes, and before subtracting credits.
Questions people ask
How is the earned credit calculated?
Multiply the sum of Part I, line 3, Columns A and B by 3%. Column B, for used property, is limited to $150,000.
How much credit can the entity use for 2025?
The allowed credit is the smallest of three amounts: 50% of the entity’s Idaho income tax, tax available after the credit for contributions to Idaho educational entities, or ITC available. Enter the allowed amount on Part II, line 6, and on Form 49, Part II, line 9.
Can unused credit be carried forward?
Credit available that exceeds the total credit allowed on the current-year return can be carried forward up to 14 tax years. Enter that amount on Form 44, Part I, line 1, in the Carryover column.
Where can I find the rules for qualifying property?
The instructions direct you to Form 49 for the definition of qualifying property and examples of qualifying and nonqualifying property.