83R: Recapture of Idaho Small Employer Investment Tax Credit and Instructions 2024 (2024)

Who files this form

Use Form 83R to figure the increase in tax and reduction in credit carryover from recapturing the Idaho small employer investment tax credit (SE-ITC).

You must recapture all SE-ITC claimed in earlier years if you no longer meet the tax incentive criteria you certified to on Idaho Form 89SE. You must also recompute the credit if you:

• Disposed of the property before the end of the five-year recapture period.
• Have property that no longer qualifies for the SE-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 a partnership, or a trust’s, estate’s, or beneficiary’s interest in trust or estate income is reduced.

S corporations, partnerships, trusts, and estates with credit subject to recapture complete lines 1 through 9. Shareholders, partners, and beneficiaries report their pass-through share on line 10.

What you'll need

Have the following information and schedules ready:

• Names as shown on the return and your Social Security number or EIN.
• A schedule describing each property that no longer qualifies.
• For each property, the date placed in service, cost or other basis used to calculate the original credit, and date it stopped qualifying.
• An additional Form 83R or a schedule with the same information if more than five items are subject to recapture.
• Form ID K-1 if recapture is passed through to you. The amount is reported in Part VII, line 47, or Part XI, line 72 (Composite/ABE).
• A separate sheet calculating any unused portion of the original credit entered on line 13.

Entities passing through SE-ITC must provide Form ID K-1 showing the recapture amount and identify the years the credit was originally earned in Part XII, Supplemental Information.

Common mistakes

• Counting partial years on line 6. Enter only full years. Enter zero if the property was held less than 12 months or you did not meet the tax incentive criteria.
• Leaving out additional property calculations. If you use extra forms or schedules, write “Tax from attached” and the total tax from those sheets to the left of line 9. Include that amount in the line 9 total.
• Including the wrong amounts on line 12. Do not include recapture for shareholders, partners, or beneficiaries whose tax the entity is paying.
• Entering too much unused credit on line 13. The amount cannot exceed line 11. It reduces the credit carryover available to the current year.
• Using recapture to reduce the current year’s credit. Report line 15 on Form 44, Part II, line 3. Do not use it to reduce the current year’s SE-ITC calculated on Form 83.
• Missing the ABE reporting requirement. An S corporation or partnership that elected to be an ABE must also distribute the line 15 amount to shareholders or partners on their Form ID K-1.

Questions people ask

What percentage of the credit is recaptured?

The percentage depends on the number of full years entered on line 6: zero years, 100%; one year, 80%; two years, 60%; three years, 40%; four years, 20%; and five or more years, 0%.

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.

Do I owe recapture tax on credit I never used?

You do not have to pay recapture tax on the portion of the original credit you did not use in the year earned or a carryover year. Calculate that portion on a separate sheet and enter it on line 13, up to the amount on line 11. This reduces the carryover available to the current year.

When is recapture tax added to my tax?

Tax owed from recapturing credits claimed in prior years is added to the tax otherwise determined in the year of recapture.

Official sources

• https://tax.idaho.gov/wp-content/uploads/forms/EFO00012/EFO00012_07-08-2024.pdf