83: Small Employer Investment Tax Credit and Instructions 2024 (2024)
Idaho · Idaho Tax Commission · Used for tax years 2024
Idaho Form 83 calculates the small employer investment tax credit earned or allowed for 2024. It reports qualified investments, credits received or distributed, prior-year carryovers, and the credit allowed against current-year income tax.
Who files this form
Use Form 83 to calculate the Idaho small employer investment tax credit you earned or are allowed to claim. Each member of a unitary group of corporations that earns or is allowed the credit must complete a separate Form 83.
To qualify, you must file Form 89SE certifying that you will meet these criteria at the project site during the project period:
- Invest at least $500,000 in new plant and building facilities.
- Increase employment by at least 10 new employees, each earning at least $19.23 per hour and receiving health benefits.
- For new employees above those first 10, meet an average wage of at least $15.50 per hour worked.
You cannot claim this credit if you have not filed Form 89SE with the Tax Commission or have been notified that you do not qualify for the small employer incentives. You may instead qualify for the regular investment tax credit on Form 49.
What you'll need
Have your name as shown on your return, Social Security number or EIN, and Idaho income tax return information ready.
Include or use these records as applicable:
- Qualified investment list: Include each property's location, basis, whether it is new or used, and the date it was placed in service.
- Form 89SE: This certification must have been filed with the Tax Commission to qualify.
- Form 49E: Include applicable forms for investments for which you claimed the property tax exemption.
- Form ID K-1: Use it to report credit passed through from an S corporation, partnership, trust, or estate.
- Prior-year Form 83: Use it to determine your credit carryover.
- Form 83R: Include it for carryover eliminated due to recapture in 2024.
- Unitary sharing schedule: Include a schedule for credit received through unitary sharing. Corporations claiming the credit must provide calculations showing credit earned and used by each combined-group member, shared credit, and carryovers.
- Form 49: Include it if reporting the regular investment tax credit on line 16.
Common mistakes
- Claiming both investment credits for the same property. You cannot claim the small employer investment tax credit and the regular investment tax credit on the same property.
- Claiming this credit on property elected for the property tax exemption. The exemption is allowed instead of earning this credit.
- Including property placed in service too early. Do not include property placed in service before the project period began.
- Using the wrong tax amount on line 12. Enter Idaho income tax before subtracting credits or adding permanent building fund tax or other taxes.
- Sharing credit before using it yourself. A unitary-group member must first use the credit up to the allowable limitation of its own tax liability.
- Overlooking recapture. Compute recapture if property is sold, disposed of, or stops qualifying before five full years in service, or if you fail to meet the incentive criteria certified on Form 89SE.
Questions people ask
How much credit can I earn?
The credit earned is 3.75% of qualified investments after subtracting investments for which you claimed the property tax exemption.
How much can I use against my tax?
The credit is limited to the smallest of $750,000, 62.5% of your tax liability, or Idaho income tax remaining after other credits that must be applied before this credit. You also cannot use more credit than you have available.
Does the property have to be at the project site?
No. Qualifying property does not have to be located at the project site, but it must be placed in service during the project period. Property not used in Idaho does not qualify. Special calculation methods apply to property used both inside and outside Idaho.
Can I carry unused credit forward?
Yes. Credit earned but not used against tax may be carried forward for 14 tax years. A short tax year counts as one tax year.