49ER: Recapture of Qualified Investment Exemption from Property Tax and Instructions 2025 (2025)
Idaho · Idaho Tax Commission · Used for tax years 2025
Idaho Form 49ER calculates and reports the property tax benefit you must repay when property covered by the qualified investment exemption no longer qualifies as Idaho investment tax credit property. It lists the affected assets, calculates recapture for each asset, and reports t
Who files this form
Use Form 49ER to report recapture of the property tax benefit from a qualified investment exemption (QIE) elected instead of earning the Idaho investment tax credit (ITC).
You must compute recapture if you claimed the QIE on property you disposed of before the end of the five-year recapture period. Recapture also applies to property that no longer qualifies as ITC property, including property moved out of Idaho within the first five years.
What you'll need
Have the following information available:
- Names 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 the asset was placed in service for each exemption year.
- Your Form 49E for the first exemption year, so the county entry matches. If the asset moved for the second exemption year, the county entry should match your required notice to the relocation county.
- The applicable county or state average urban property tax levy from page 2 of the instructions.
If you do not 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 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 separate schedules containing the same required information. Include all Forms 49ER and separate sheets with your return.
When using additional forms or sheets, write “Tax from attached” and the total tax from those sheets to the left of the line 18 entry space. Include that amount in the line 18 total.
The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Counting partial years on line 15. Enter only full years between the service date and the date the asset stopped qualifying. Enter zero if the property was held less than 12 months.
- Completing second-year lines when no exemption was claimed. If you did not claim the exemption for an asset in year 2, skip lines 8 through 12 for that column.
- Using the wrong levy year or type. Use the rates for the years you claimed the exemption. For centrally assessed property, leave lines 5 and 10 blank and use lines 6 and 11. Property used in more than one county also uses the state average urban levy.
- Entering inconsistent county information. Line 3 should match the first-year Form 49E. If the asset moved for the second exemption year, line 8 should match the required notice to the relocation county.
- Leaving out additional recapture amounts or attachments. Include amounts from additional forms or sheets in line 18, and include those forms and sheets with your return.
Questions people ask
What happens if I move the property out of Idaho?
Property moved out of Idaho within the first five years no longer qualifies as ITC property and is subject to recapture.
How much of the property tax benefit is recaptured?
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%; and 5 or more years, 0%. Multiply the property tax benefit on line 13 by that percentage on line 17.
What if I claimed the exemption for only one year?
Skip lines 8 through 12 for that asset and go to line 13.
Where can I get the exempted value of my asset?
Contact the applicable county assessor if you do not have the exempted value for the first or second year you claimed the exemption.