49R: Recapture of Idaho Investment Tax Credit and Instructions 2025 (2025)
Idaho · Idaho Tax Commission · Used for tax years 2025
Form 49R calculates the increase in tax and reduction in credit carryover from recapturing Idaho investment tax credit. It reports property that no longer qualifies, the original credit, and any recapture amounts passed through to or from shareholders, partners, or beneficiaries.
Who files this form
Use Form 49R to calculate additional tax and a reduction in credit carryover when Idaho investment tax credit (ITC) must be recaptured.
You must recalculate the credit if you:
- Earned it in an earlier year but disposed of the property before the end of the five-year recapture period.
- Have property that no longer qualifies for ITC, including property moved out of Idaho within the first five years.
Recapture may also be necessary when a shareholder’s interest in an S corporation, a partner’s interest in partnership profits or property, or an interest in trust or estate income is reduced.
S corporations, partnerships, trusts, and estates with credit subject to recapture must complete lines 1 through 9. Shareholders, partners, and beneficiaries report their pass-through recapture on line 10. If pass-through recapture is all you are reporting, skip lines 1 through 9.
What you'll need
Have the following information and schedules ready:
- Your name as shown on your return and your Social Security number or EIN.
- A detailed schedule describing each property that no longer qualifies for ITC.
- For each property, the date it was first available for service, the cost or other basis used to calculate the original credit, and the date it stopped qualifying.
- Form ID K-1 if recapture was passed through to you. The amount is reported in Part X, line 56, or Part XI, line 70 (ABE).
- A separate sheet calculating any unused portion of the original credit claimed on line 13.
If you have more than five properties, use an additional Form 49R or another schedule with the same required information.
Pass-through entities must provide Form ID K-1 showing the recapture amount and include details about the years the credit was originally earned in Part XII, Supplemental Information.
Common mistakes
- Counting partial years on line 6. Enter only full years. If you held the property for less than 12 months, enter zero.
- Leaving additional schedules out of line 9. Include recapture calculated on additional forms or sheets. Write “tax from attached” and the total tax from those sheets to the left of the entry space.
- Including composite-return recapture on line 12. Do not include recapture for shareholders, partners, or beneficiaries whose tax you are paying on a composite return.
- Entering too much unused credit on line 13. Do not enter more than line 11. Report the line 13 amount on Form 49C to reduce the credit carryover available to the current year.
- Using recapture tax to reduce current-year ITC. Report line 15 on Form 44, Part II, line 1. Do not use it to reduce the current-year credit calculated on Form 49.
Questions people ask
What percentage of the original credit is recaptured?
The percentage depends on the number of full years between the date the property was placed in service and the date it stopped qualifying:
- 0 full years: 100%
- 1 full year: 80%
- 2 full years: 60%
- 3 full years: 40%
- 4 full years: 20%
- 5 or more full years: 0%
Do I owe recapture tax on credit I never used?
You do not have to pay recapture tax on the portion you did not use in the year earned or in a carryover year. Calculate that unused portion on a separate sheet and enter it on line 13, limited to line 11. This amount reduces the credit carryover available to the current year and must also be reported on Form 49C.
What if my only recapture comes from a pass-through entity?
Skip lines 1 through 9 and begin on line 10. Use the recapture information provided by the S corporation, partnership, trust, or estate on Form ID K-1.
What if I have more than five properties to report?
Use an additional Form 49R or another schedule containing the same information required on Form 49R. Use a separate column for each property and include all line 8 amounts in the total on line 9.