IDAPA 35.01.01.715 — IDAHO INVESTMENT TAX CREDIT: RECAPTURE (RULE 715)

Section 63-3029B, Idaho Code
01.
In General. If a taxpayer is claiming or has claimed the investment tax credit for property sold or
otherwise disposed of, or that ceases to qualify pursuant to Section 63-3029B, Idaho Code, prior to being held five (5)
full years, a recomputation of the credit will be made.
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02.
Recomputation of the Investment Tax Credit.
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a.
The recomputation of the credit and any recapture of prior credits is made pursuant to the Internal
Revenue Code and Treasury Regulations for the taxable year in which the property is disposed of or ceases to qualify.
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IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.01
Idaho State Tax Commission
Income Tax Administrative Rules
Section 716
Page 101
b.
The recapture is computed by multiplying the credit by the applicable recapture percentage in
Subsection 715.04.
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c.
The recapture of credit previously claimed against tax in prior taxable years is an addition to tax in
the taxable year in which the property is disposed of or ceases to qualify. The addition to tax does not affect the
computation of limitations used to determine the amount of investment tax credit or any other Idaho credit that may
be claimed in the year of the recapture.
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03.
Unitary Taxpayers. The corporation that earned the credit is responsible for the recapture or
recomputation of the credit when the property ceases to qualify.
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04.
Applicable Recapture Percentages. For qualified business property placed in service after
December 31, 1990, the recapture amount is computed by multiplying the credit earned by the applicable recapture
percentage. The length of time the asset qualifies determines the recapture percentage as follows:
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a.
If less than one (1) year, use one hundred percent (100%);
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b.
If more than one (1) year but less than two (2) years, use eighty percent (80%);
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c.
If more than two (2) years but less than three (3) years, use sixty percent (60%);
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d.
If more than three (3) years but less than four (4) years, use forty percent (40%);
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e.
If more than four (4) years but less than five (5) years, use twenty percent (20%).
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