68: Broadband Equipment Investment Credit and Instructions 2024 (2024)
Idaho · Idaho Tax Commission · Used for tax years 2024
Idaho Form 68 calculates the broadband equipment investment credit earned or allowed for 2024. It reports qualified investments, credits received or distributed, the credit allowed against Idaho income tax, and any carryover to future years.
Who files this form
Use Form 68 to calculate the broadband equipment investment credit earned or allowed for 2024. This includes credit you earned, received through a pass-through entity, received through unitary sharing or transfer, or carried over from a prior year.
Each member of a unitary group that earns or is allowed the credit must complete a separate Form 68.
To claim credit for equipment investments, you must obtain an Idaho Public Utilities Commission (PUC) order confirming that the installed equipment qualifies. The equipment must be used primarily to provide services to public subscribers in Idaho.
What you'll need
Have these records and forms ready, as applicable:
- Equipment list and PUC approval: Include a complete list identifying each piece of equipment, your basis in it, and the date it was placed in service. Include the PUC approval confirming that the installed equipment qualifies.
- Idaho income tax return and other credit information: You need these to calculate the credit limitation.
- Form ID K-1: For pass-through credit, use Part VII, line 41, or Part XI, line 65 for Composite/ABE reporting.
- 2023 Form 68: Use line 19 to enter your carryover on line 6 of the 2024 form.
- Form 68R: Include it if you report carryover eliminated due to recapture in 2024.
- Form 70, Statement of Credit Transfer: Include it for credit received or transferred. A recipient must include a copy with each income tax return on which the transferred credit is claimed or carried over.
- Unitary-group schedule: Include the required sharing schedule. It must show credit earned and used by each member, identify shared credit, and calculate carryovers.
How to file
Complete Form 68 to calculate the credit available, the amount allowed, and any carryover.
- Enter the allowed credit from line 16 on Form 44, Part I, line 5, in the Credit Allowed column.
- Enter the carryover from line 19 on Form 44, Part I, line 5, in the Carryover column.
- Include the equipment list, PUC approval, and any other required attachments that apply.
If you transfer credit, submit Form 70 to the Tax Commission at least 60 days before the transfer date.
The supplied text does not give a mailing address or e-filing directions for Form 68.
Common mistakes
- Including equipment that no longer qualifies: Do not include equipment disposed of, moved out of Idaho, or no longer qualifying before year-end.
- Sharing credit before using it: A unitary-group member must first use its credit up to the allowable Idaho income tax limitation before sharing it.
- Transferring credit you did not earn: You may transfer only credit you originally earned, unless you are an intermediary.
- Using the wrong tax amount on line 12: Enter computed Idaho income tax before credits and before adding permanent building fund tax or other taxes.
- Skipping credits that come first: Apply the other credits listed on lines 13a through 13h before calculating the broadband credit limitation.
- Missing ABE distributions: An S corporation or partnership that elected to be an ABE must also distribute the line 16 amount to shareholders or partners on Form ID K-1.
Questions people ask
How much credit can I earn?
Line 2 calculates the credit earned as 3% of the qualified investments reported on line 1. Those investments must be approved by the Idaho PUC.
How much credit can I use for 2024?
The allowed credit cannot exceed your available credit, $750,000, or your Idaho income tax remaining after the credits that must be applied first. Form 68 calculates these limits on lines 11 through 16.
Can I carry unused credit forward?
Yes. Credit exceeding the amount allowed on the current-year return may be carried forward for up to 14 tax years. A recipient of transferred credit gets the same carryover period that would have been available to the transferor.
What equipment qualifies?
The equipment must qualify for the investment tax credit and be capable of transmitting at least 200,000 bits per second to a subscriber and at least 125,000 bits per second from a subscriber. It must be used primarily to serve public subscribers in Idaho. The instructions also identify carrier and equipment categories with specific requirements, and you must obtain PUC confirmation that the installed equipment qualifies.