84: Small Employer Real Property Improvement Tax Credit and Instructions 2024 (2024)
Idaho · Idaho Tax Commission · Used for tax years 2024
Idaho Form 84 calculates the small employer real property improvement tax credit earned or allowed for 2024. It reports qualifying investments, credits received or shared, the credit allowed against current-year tax, and unused credit carried forward.
Who files this form
Use Form 84 to calculate the Idaho small employer real property improvement tax credit earned or allowed. Each member of a unitary group of corporations that earns or is allowed the credit must complete a separate Form 84.
To qualify, you must file Form 89SE certifying that you’ll meet all 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 employment increases beyond those 10 employees, pay the additional new employees average wages of at least $15.50 per hour worked.
You can’t claim this credit if you haven’t filed Form 89SE with the Tax Commission or have been notified that you don’t qualify for the small employer incentives.
What you'll need
Have these forms and records available, as applicable:
- Qualifying property list: Include each item acquired and placed in service during the tax year, its location, your basis in the item, and its placed-in-service date.
- Form 89SE: You must have filed this certification with the Tax Commission to qualify.
- Idaho income tax return and credit forms: You’ll need your Idaho income tax and the amounts of other credits applied before this credit.
- Form ID K-1: For a pass-through credit, use Part VII, line 43, or Part XI, line 67 for Composite/ABE.
- 2023 Form 84: The instructions say to use line 27 for the prior-year carryover entered on line 5.
- Form 84R: Include it if you report carryover eliminated due to recapture in 2024 on line 6.
- Unitary-group schedule: Include a schedule for credit received through unitary sharing. Corporations claiming the credit must provide calculations of credit earned and used by each combined-group member, clearly identifying shared credit and carryovers.
- Form 44: Report the allowed credit and carryover in Part I, line 7, in their respective columns.
Common mistakes
- Including used property: Only new property qualifies.
- Including property outside the qualifying project requirements: Buildings and structural components must be at the project site and placed in service during the project period. Don’t include property placed in service before the project period began.
- Counting the same investment on Form 83 and Form 84: Don’t include qualified investments reported on Form 83 in Form 84, line 1.
- Using the wrong tax amount on line 10: Enter computed Idaho income tax before subtracting credits or adding permanent building fund tax or any other taxes.
- Sharing credit too soon: Before sharing credit with unitary-group members, you must use it up to the allowable tax-liability limitation.
- Missing recapture: Compute recapture if property is sold, otherwise disposed of, or stops qualifying before five full years in service. Recapture also applies if you claimed the credit in an earlier year and don’t meet the criteria certified on Form 89SE. File Form 84R when recapture is required.
Questions people ask
How much credit can I earn and use?
The credit earned is 2.5% of qualifying investments on line 1. The amount allowed on the current-year return cannot exceed the available credit, $125,000, or Idaho income tax remaining after the other credits that must be applied first.
What property qualifies?
New buildings and structural components that don’t qualify for the investment tax credit may qualify. They must be at the project site and placed in service during the project period. Examples of structural components include walls, floors, windows, doors, plumbing, electrical wiring, and central heating or air-conditioning components.
Can I carry unused credit forward?
Yes. Credit earned but not used against tax may be carried forward for up to 14 tax years. A short tax year counts as one tax year.
Can I receive this credit through another entity?
Yes. Line 3 reports credit passed through by an S corporation, partnership, trust, or estate in which you have an interest. Use the amount shown on Form ID K-1, Part VII, line 43, or Part XI, line 67 for Composite/ABE.
Where do I report the allowed credit and carryover?
Enter the allowed credit from Form 84, line 25, on Form 44, Part I, line 7, in the Credit Allowed column. Enter the carryover from Form 84, line 28, on the same line in the Carryover column. An S corporation or partnership that elected to be an ABE must also distribute the line 25 amount to shareholders or partners on Form ID K-1.