Qualifying Property
Qualified broadband equipment is equipment that qualifies for the investment tax credit and is capable of transmitting signals at a rate of at least 200,000 bits per second to a subscriber and at least 125,000 bits per second from a subscriber. In addition, specific requirements must be met by telecommunications carriers, commercial mobile service carriers, cable or open video system operators, satellite or wireless carriers, packet switching equipment, and multiplexing and demultiplexing equipment. The equipment must be used primarily to provide services to public subscribers in Idaho.
Transfer of Credit
A taxpayer who earns the broadband equipment investment credit and an intermediary may transfer the credit to another taxpayer. The transferor must submit Form 70, Idaho Statement of Credit Transfer, to the Tax Commission at least 60 days prior to the date of transfer. The Tax Commission will verify the amount of credit available for transfer and the number of carryover years. The transferee may first claim the transferred credit on his income tax return originally filed during the calendar year in which the transfer takes place. However, the credit may not be claimed on a tax return that begins prior to January 1, 2001.The transferee must attach a copy of Form 70 to each income tax return in which the credit is claimed or carried over.
Carry-Over Periods
The credit carry-over is limited to 14 tax years. A transferee is entitled to the same carry-over period that would have been allowed to the transferor.
For more information, see Form 68 instructions.