84R: Recapture of Idaho Small Employer Real Property Improvement Tax Credit and Instructions 2025 (2025)
Idaho · Idaho Tax Commission · Used for tax years 2025
Idaho Form 84R calculates the increase in tax and reduction in credit carryover from recapturing the small employer real property improvement tax credit. It reports property that no longer qualifies, the original credit, and any credit recapture passed through to or from an entit
Who files this form
Use Form 84R to calculate tax increases and credit carryover reductions when the Idaho small employer real property improvement tax credit (SE-RPITC) must be recaptured.
- If you claimed the credit in an earlier year but do not meet the tax incentive criteria you certified on Form 89SE, you must recapture all SE-RPITC claimed in earlier years.
- Recalculate the credit if you disposed of the property before the five-year recapture period ended, or if the property no longer qualifies, such as property moved out of Idaho within the first five years.
- Recapture may also be necessary when a shareholder’s, partner’s, trust’s, estate’s, or beneficiary’s interest is reduced.
S corporations, partnerships, trusts, and estates with credit subject to recapture must complete lines 1 through 9. If you are reporting only recapture passed through from an entity, skip lines 1 through 9 and begin on line 10.
What you'll need
Have the following information ready:
- Names as shown on your return and your Social Security number or EIN.
- A description of each property that no longer qualifies.
- The date each property was first available for service, its cost or other basis used for the original credit, and the date it stopped qualifying.
- Form ID K-1 if recapture is passed through to you. The amount is in Part VII, line 48, or Part XI, line 73 (Composite/ABE).
- A separate sheet calculating any unused portion of the original credit for line 13.
If more than five properties are subject to recapture, use an additional Form 84R or another schedule containing the same information.
Entities passing through recapture must provide Form ID K-1 with the recapture amount and details in Part XII about the years the credit was originally earned.
Common mistakes
- Counting partial years on line 6. Enter only full years. Enter zero if you held the property less than 12 months or did not meet the tax incentive criteria.
- Leaving additional schedules out of line 9. Include their total in line 9 and write “Tax from attached” and the separate-sheet total to the left of the entry space.
- Including certain recipients’ recapture on line 12. Do not include recapture for shareholders, partners, or beneficiaries whose tax you are paying.
- Entering too much unused credit on line 13. Do not enter more than line 11. Line 13 reduces the carryover available for the current year.
- Using recapture to reduce the current year’s credit. Do not subtract line 15 from the current year’s credit on Form 84. Report it on Form 44, Part II, line 4.
Questions people ask
What does Form 84R calculate?
It calculates the increase in tax and reduction in credit carryover from recapturing the SE-RPITC. Tax resulting from recapture of credits claimed in prior years is added to the tax for the recapture year.
What recapture percentage applies?
Use the number of full years on line 6:
- 0 years: 100%
- 1 year: 80%
- 2 years: 60%
- 3 years: 40%
- 4 years: 20%
- 5 or more years: 0%
Do I pay 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 unused portion on a separate sheet and enter it on line 13, limited to line 11. It reduces the credit carryover available for the current year.
Where does the final recapture amount go?
Enter the total increase in tax on Form 84R, line 15, and Form 44, Part II, line 4. An S corporation or partnership that elected to be an ABE must distribute this amount to its shareholders or partners and report it on their Forms ID K-1.