49C: Investment Tax Credit Carryover and Instructions 2025 (2025)
Idaho · Idaho Tax Commission · Used for tax years 2025
Idaho Form 49C calculates the investment tax credit carryover available for 2025. It tracks credits earned in prior years, amounts used or passed through, and recaptured credits to determine the carryover amount entered on Form 49.
Who files this form
Complete Form 49C for tax year 2025 if an investment tax credit (ITC) carryover is included in your available credit for the year. After completing Form 49C, transfer the carryover amount to Form 49, Part I, line 8.
What you'll need
Have the following information available to complete Form 49C:
- Credit earned in each applicable tax year, without carryover amounts.
- Credit allowed against tax, shared with another member of a unitary group, or passed through to an owner or beneficiary.
- Credit recaptured in each applicable year, including 2025.
You will also need Form 49 to report the total carryover. If Form 49C does not let you properly show how carryovers and recapture apply, provide the information on a separate schedule.
Common mistakes
- Including carryovers on line 1. Enter only the credit earned in each tax year, not carryover amounts.
- Using current-year credit first. You must use the oldest available credit before using credit earned in the current year.
- Missing required recapture. Recompute the credit if you disposed of the property or it stopped qualifying before the end of the five-year recapture period. This includes 100% of the credit for property used less than a full year.
- Overlooking property moved out of Idaho. Property moved from Idaho within the first five years no longer qualifies as ITC property and is subject to recapture.
Questions people ask
How long can I carry the credit forward?
You can carry the credit forward for up to the next 14 tax years.
Where does the total carryover go?
On page 2, add lines 33 and 34 and enter the total on line 35. Transfer that amount to Form 49, Part I, line 8.
Can another member of a unitary combined group claim the carryover?
Yes. Any member of a unitary combined group of corporations can claim the credit carried forward, as long as the member that earned it is still in the combined group for the year the credit is claimed.
What happens to the carryover when a C corporation converts to an S corporation?
The S corporation can claim the carryover against its tax on net recognized built-in gains and excess net passive income. The credit is not allowed against tax the S corporation pays for nonresident shareholders. Use a separate Form 49C for the credit carryover.