83R: Recapture of Idaho Small Employer Investment Tax Credit and Instructions 2025 (2025)
Idaho · Idaho Tax Commission · Used for tax years 2025
Idaho Form 83R calculates the increase in tax and reduction in credit carryover from recapturing the small employer investment tax credit. It reports property that no longer qualifies, the original credit, and any recapture received from or distributed to pass-through owners or b
Who files this form
Use Form 83R to figure the tax increase 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 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 partnership profits or particular property, 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 of recapture 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, the cost or other basis used to compute the original credit, and the date it stopped qualifying.
- Form ID K-1 if you received recapture from a pass-through entity. The recapture amount appears in Part VII, line 47, or Part XI, line 72 for Composite/ABE reporting.
- A separate sheet computing any unused portion of the original credit entered on line 13.
- An additional Form 83R or a schedule with the same required information if more than five properties are subject to recapture.
Pass-through entities must provide Form ID K-1 showing the recapture amount and details in Part XII, Supplemental Information, about the years the credit was originally earned.
Common mistakes
- Counting partial years on line 6. Enter only full years. Enter zero if the property was held less than 12 months or if you did not meet the tax incentive criteria.
- Leaving out recapture from extra schedules. Include those amounts in line 9. Write “Tax from attached” and the total tax from the separate sheets to the left of the entry space.
- Including certain owners’ recapture 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. Do not enter more than line 11. Line 13 reduces the credit carryover available to the current year.
- Using recapture to reduce the current year’s credit. Enter line 15 on Form 44, Part II, line 3. Do not use it to reduce the current year’s SE-ITC computed on Form 83.
Questions people ask
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.
How is the recapture percentage determined?
Use the number of full years on line 6. The percentages are 100% for zero years, 80% for one year, 60% for two years, 40% for three years, 20% for four years, and 0% for five or more years.
Do I pay recapture tax on credit I never used?
No. If you did not use the credit in the year earned or in a carryover year, you do not pay recapture tax on that unused amount. Compute it on a separate sheet and enter it on line 13, up to the amount on line 11. It reduces the credit carryover available to the current year.
What if I have more than five properties to report?
Use an additional Form 83R or another schedule containing the same information required on Form 83R. Use a separate column for each property.