84: Small Employer Real Property Improvement Tax Credit and Instructions 2025 (2025)
Idaho · Idaho Tax Commission · Used for tax years 2025
Idaho Form 84 calculates the small employer real property improvement tax credit earned and allowed for 2025. It reports qualifying investments, credits received or distributed, the amount allowed on the current return, 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 for 2025. Each member of a unitary group of corporations that earns or qualifies for the credit must complete a separate Form 84.
To qualify, you must file Form 89SE certifying that you’ll meet these requirements at the project site during the project period:
- Invest at least $500,000 in new plant and building facilities.
- Add 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.
You can’t claim the credit if you haven’t filed Form 89SE with the Tax Commission or if the Tax Commission has notified you that you don’t qualify for the small-employer incentives.
What you'll need
- Qualifying property list: Include each qualifying item acquired and placed in service during the tax year, its location, your basis in the item, and the date it was placed in service.
- Form 89SE: You must have filed this certification with the Tax Commission to qualify.
- Income tax return and applicable credit forms: Use these to enter your Idaho income tax and the other credits listed on Form 84.
- Form ID K-1, if applicable: Pass-through credit amounts come from Part VII, line 43, or Part XI, line 67 (Composite/ABE).
- 2024 Form 84, if applicable: The instructions direct you to use line 27 for the prior-year carryover entered on line 5.
- Form 84R, if applicable: Include it when reporting carryover eliminated because of recapture in 2025.
- Unitary-group schedules, if applicable: Include a schedule for credit received through unitary sharing. Corporations claiming the credit must provide calculations showing each combined-group member’s credit earned and used, shared credit, and carryovers.
- Form 44: Report the current-year credit allowed and carryover in Part I, line 7, in their respective columns.
Common mistakes
- Including investments already reported on Form 83. Don’t include those qualified investments on Form 84, line 1.
- Claiming used property or property placed in service too early. Used property doesn’t qualify. Don’t include property placed in service before the project period began.
- Skipping other credits when calculating the limit. Apply the other credits listed in the instructions in the required order before applying this credit.
- Using the wrong tax amount on line 10. Enter calculated Idaho income tax before subtracting credits or adding the permanent building fund tax or other taxes.
- Sharing credit before using it yourself. A unitary-group member must first use its credit up to the allowable tax-liability limit before sharing it.
- Overlooking recapture. Calculate recapture if qualifying 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
What property qualifies for the credit?
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, plumbing, electrical wiring, and central heating or air conditioning systems.
How much is the credit?
The credit earned is 2.5% of the qualifying investment amount on line 1. The amount allowed on the current-year return can’t exceed the available credit, $125,000, or Idaho income tax remaining after the other credits that must be applied first.
Can I carry unused credit forward?
Yes. You can carry forward earned but unused credit for up to 14 years. A short tax year counts as one tax year for this purpose.
Where do I report the allowed credit and carryover?
Report the allowed credit from Form 84, line 25, on Form 44, Part I, line 7, in the Credit Allowed column. Report the carryover from Form 84, line 28, on the same Form 44 line in the Carryover column.
What if an S corporation or partnership has elected to be an ABE?
The instructions say to distribute the amount on line 25 to shareholders or partners and report it on their Form ID K-1.