49ER: Recapture of Qualified Investment Exemption from Property Tax and Instructions 2024 (2024)
Idaho · Idaho Tax Commission · Used for tax years 2024
Idaho Form 49ER calculates and reports the property tax benefit to be recaptured from a qualified investment exemption claimed instead of the Idaho investment tax credit. It lists property that no longer qualifies and calculates the total recapture amount to include on your Idaho
Who files this form
Use Form 49ER to report recapture of a property tax benefit from the qualified investment exemption (QIE), which you elected instead of earning the Idaho investment tax credit (ITC).
Recapture applies if you claimed the exemption on property that:
- You disposed of before the end of the five-year recapture period.
- No longer qualifies as ITC property, including property moved out of Idaho within the first five years.
What you'll need
Have these records and details available:
- Your name as shown on your return and your Social Security number or EIN.
- Each asset’s number, description, date placed in service, and date it stopped qualifying as ITC property.
- The first year you claimed the exemption and the exempted value for each year claimed.
- The Idaho county where each asset was placed in service, including any second-year relocation.
- Your Form 49E for the first exemption year, so the county information matches.
- The applicable property tax levy rates from page 2 of the instructions.
If you don’t have an asset’s exempted value, contact the applicable county assessor.
How to file
Include Form 49ER with your Idaho income tax return. Enter the total recapture amount from line 18 on the appropriate line of that return.
Use a separate column for each asset. If you have more than five assets, use additional Forms 49ER or schedules containing the same required information. Include all Forms 49ER and separate sheets with your return.
Common mistakes
- Counting partial years on line 15. Enter only full years between the date the asset was placed in service and the date it stopped qualifying. Enter zero if it was held less than 12 months.
- Completing second-year lines when no exemption was claimed. If you didn’t claim the exemption for an asset in year 2, skip lines 8 through 12 for that column.
- Using county levy lines for centrally assessed property. Leave lines 5 and 10 blank for centrally assessed assets and use the state average urban levy on lines 6 and 11, as applicable.
- Using county information that doesn’t match your records. Line 3 should match your first-year Form 49E. If the asset moved for the second exemption year, line 8 should match your required notice to the relocation county.
- Leaving out recapture from additional sheets. Include it in line 18, write “Tax from attached” and the total tax from those sheets to the left of the entry space, and include the sheets with your return.
Questions people ask
How is the property tax benefit calculated?
For each exemption year, multiply the asset’s exempted value by the applicable property tax levy. Add the first- and second-year amounts on line 13. Skip the second-year calculation if no exemption was claimed for that year.
What recapture percentage applies?
The percentage depends on the number of full years between the date the asset was placed in service and the date it stopped qualifying:
- 0 years: 100%
- 1 year: 80%
- 2 years: 60%
- 3 years: 40%
- 4 years: 20%
- 5 or more years: 0%
Multiply the property tax benefit on line 13 by this percentage to calculate recapture for each asset.
Which property tax levy should I use?
For locally assessed property, use the county’s average property tax levy for the year you claimed the exemption. For centrally assessed property or property used in more than one county, use the state average urban property tax levy. The rates are listed on page 2 of the instructions.
Where can I get help?
Call (208) 334-7660 in the Boise area or (800) 972-7660 toll free. The hearing-impaired TDD number is (800) 377-3529. Contact information is also available at tax.idaho.gov/contact.