GENERAL INSTRUCTIONS
Complete this form if an investment tax credit (ITC) carryover is included in the current year's available credit. Once the Form 49C is completed, the carryover will be carried to Form 49.
Carryover Period
ITC earned in tax years beginning on or after January 1, 2000, can be carried forward up to 14 succeeding tax years. Credit earned in tax years beginning before 2000 can also be carried forward up to 14 tax years if the 7-year carryover allowed for these years didn't expire before the first tax year beginning in 2000. For purposes of the carryover period, a short tax year counts as one tax year.
Application of Credit
The oldest available credit must be used before credit earned in the current year is used. Property moved from Idaho within the first five years ceases to qualify as ITC property and is subject to recapture.
Unitary Taxpayers
Credit carried forward may be claimed by any member of a unitary combined group of corporations as long as the member who earned the credit is still in the combined group for the year the credit is being claimed.
Conversion of a C Corporation to S Corporation
An investment tax credit carryover earned by a C corporation that has converted to an S corporation is allowed against the S corporation's tax on net recognized built-in gains and excess net passive income. The credit is not allowed against the tax paid by an S corporation for nonresident shareholders. A separate Form 49C should be used to account for this credit carryover.
Use of Other Schedules
If this form does not allow you to properly reflect the application of carryovers and recapture, you may provide the information on a separate schedule.
SPECIFIC INSTRUCTIONS
Line 1. For each year, enter the credit earned that tax year. Don't include any carryover amounts.
Lines 2, 4, 6, 8, 10, 12, 14, 16, 18, 20, 22, 24, 26, and 28.
For each year, enter the amount of credit allowed against tax, the amount of credit you earned that was shared with another member of the unitary group, and the amount of credit that passed through to an owner or beneficiary.
Lines 3, 5, 7, 9, 11, 13, 15, 17, 19, 21, 23, 25, 27, 29, and 30.
For each year, enter the total of the following amounts:
● Credit recaptured. The credit must be recomputed if you disposed of the property before the end of the 5-year recapture period. This includes 100% of the credit for property used less than a full year.