83: Small Employer Investment Tax Credit and Instructions 2025 (2025)
Idaho · Idaho Tax Commission · Used for tax years 2025
Idaho Form 83 calculates the small employer investment tax credit earned or allowed for 2025. It reports qualified investments, credits received or shared, prior-year carryovers, and the credit allowed against current-year Idaho income tax.
Who files this form
Use Form 83 to calculate the Idaho small employer investment tax credit (SE-ITC) earned or allowed for 2025. 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 have filed Form 89SE certifying that you will meet these requirements 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 eligible for benefits under a qualifying health benefit plan.
- For new employees above those 10, pay average wages of at least $15.50 per hour worked.
You cannot claim the credit if you have not filed Form 89SE or have been notified that you do not qualify for the small employer incentives.
What you'll need
Have your name as shown on your tax return and your Social Security number or EIN ready, along with:
- A complete list of qualifying property acquired and placed in service during the tax year. Include each item's location, basis, whether it is new or used, and the date placed in service. Attach this list.
- Your income tax return information, including Idaho income tax and other applicable credits.
- Your filed Form 89SE certification.
Depending on your situation, you may also need:
- Applicable Forms 49E for investments for which you claimed the property tax exemption. Include these forms.
- Form ID K-1 showing credit received from a pass-through entity.
- Your 2024 Form 83 for the credit carryover.
- Form 83R if a carryover was eliminated due to recapture in 2025. Include the form.
- Form 49 if you claim the regular investment tax credit. Include the form.
- A schedule for unitary sharing. Corporations claiming the credit must provide calculations showing credit earned and used by each combined-group member, shared credit, and carryovers.
Common mistakes
- Claiming two investment credits on the same property. You cannot claim both the SE-ITC and the regular investment tax credit on the same property.
- Including property exempted from property tax. You cannot claim the SE-ITC for property you elect to exempt from property tax.
- Including property placed in service too early. Do not include property placed in service before the project period began.
- Missing recapture. Compute recapture if you dispose of property or it stops qualifying before five full years in service. Recapture also applies if you claimed the credit in an earlier year but did not meet the criteria certified on Form 89SE.
- Sharing credit before using it against your own tax. Before sharing credit with unitary-group members, you must use it up to the allowable limit of your tax liability.
Questions people ask
How much credit can I earn?
The credit earned is 3.75% of qualifying investments after subtracting investments for which you claimed the property tax exemption. The credit is limited to the smallest of $750,000, 62.5% of tax liability, or Idaho income tax remaining after other credits that must be applied first.
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.
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.
Do buildings qualify for this credit?
No. Buildings and their structural components do not qualify for the SE-ITC. They may qualify for the small employer real property improvement tax credit described on Idaho Form 84.