Idaho Certification for Idaho's Small Employer Tax Incentives
Extracted from PDF file 2019-idaho-form-89se.pdf, last modified October 2019
Certification for Idaho's Small Employer Tax IncentivesForm 89SE Certification for Idaho’s Small Employer Tax Incentives Business name Federal Employer Identification Number (EIN) Current business mailing address Contact person and title City State ZIP Code Phone number of contact person Qualifying for the Incentives To claim the Idaho small employer incentives, you must certify that you’ve met or will meet all of the following tax incentive criteria at the project site during the project period: • Capital investment in new plant and building facilities of at least $500,000 • Increased employment by at least 10 new employees who each earn at least $19.23 per hour worked and receive health benefits • For new employment increases above the 10 new employees, the average wages of the additional new employees is at least $15.50 per hour worked. See instructions for who’s included in this calculation. The following information is required to certify that the proposed project will meet the small employer tax incentive criteria during the project period. If you don’t provide the requested information, the Tax Commission may disallow any tax incentives claimed under the Idaho Small Employer Incentive Act. 1. Description of qualifying project. 2. Estimated/actual start date of project. The start date is the earlier of the date the first physical change to the project site occurs or the date new employees related to the project site are first employed in Idaho. The start date can’t be earlier than January 1, 2006. 3. Estimated/actual end date of project. The project period can’t be longer than 10 years or end later than December 31, 2020. 4. Location of the project sites. Identify the street address for each site. If more than one location, identify the percent of the investment projected at each site once the project is completed. 5. Estimated/actual number of new jobs created during the project period. For each year in the project period, enter the tax year followed by the number of new jobs created during that year. Yr # of jobs Yr # of jobs Yr # of jobs Yr # of jobs Yr # of jobs Yr # of jobs Yr # of jobs Yr # of jobs Yr # of jobs Yr # of jobs Total # of jobs EFO00044 07-15-2019 Page 1 of 2 Form 89SE 6. (continued) Estimated/actual cost of capital investments in new plant and building facilities. For each year in the project period, list the actual or projected cost of capital investments in new plant and building facilities. a. Qualified investment. This is property that generally qualifies for the Idaho investment tax credit, including computers, equipment, furniture, etc. Enter the tax year followed by the cost of qualified investments placed in service during that year. Yr Amount Yr Amount Yr Amount Yr Amount Yr Amount Yr Amount Yr Amount Yr Amount Yr Amount Yr Amount Total Amount b. Buildings and their structural components, including parking garages. Enter the tax year followed by the cost of buildings and structural components placed in service during that year. Yr Amount Yr Amount Yr Amount Yr Amount Yr Amount Yr Amount Yr Amount Yr Amount Yr Amount Yr Amount Total Amount 7. Total plant and building facilities cost by location. Certification by Taxpayer Under penalties of perjury, I declare that to the best of my knowledge and belief this information is true, correct and complete. Signature of officer Date Title Phone number of officer Mail to: Tax Policy Idaho State tax Commission PO Box 36 Boise ID 83722 or Fax to: EFO00044 Tax Policy (208) 334-7844 07-15-2019 Page 2 of 2 Form 89SE — Instructions Certification for Idaho’s Small Employer Tax Incentives General Instructions File Form 89SE before claiming any incentives allowed by the Idaho Small Employer Incentive Act. Include a copy of Form 89SE with your Idaho income tax return for each tax year that you’re claiming or carrying over the incentives. Tax Incentive Criteria To qualify, you must certify that you’ve met or will meet all of the following tax incentive criteria at the project site during the project period: • Invest at least $500,000 in new plant and building facilities • Increase employment at the project site by at least 10 new employees who each earn at least $19.23 per hour worked • If your new employment increased by more than the 10 new employees, these additional new employees must on average earn at least $15.50 per hour worked during your tax year. Don’t include the wages of employees earning more than $48.08 per hour. Project Site This is the location of new plant and building facilities owned or leased by the taxpayer. The project site can be one or more geographic areas in Idaho but only if 80% or more of the investment required is located at one of the areas. Project Period This is the period of time that begins at the earlier of: • A physical change to the project site or • The first employment of new employees in Idaho who are related to the activities at the project site. The project period can’t begin before January 1, 2006. The project period ends when all of the project’s facilities are placed in service but no longer than 10 years or later than December 31, 2020. New Plant and Building Facilities This includes property that meets either the definition of qualifed investment for purposes of the investment tax credit (ITC) or is a building or a structural component of a building. The property must be new property. Used property doesn’t qualify. New property is property acquired or constructed by the taxpayer whose original use begins with the taxpayer after acquisition or construction. Original use means the first use of the EIN00093 07-15-2019 property, whether or not that corresponds to the use of the property by the taxpayer. Property used by the taxpayer before its acquisition doesn’t qualify. New Employees To qualify as a new employee for the tax incentive criteria an employee must: • Be employed primarily at the project site by the taxpayer • Have wages subject to Idaho income tax withholding • Be covered for Idaho unemployment insurance purposes • Be eligible to receive employer-provided coverage under a health plan described in Idaho Code section 41-4703 • Be employed on a regular full-time basis • Meet the applicable wage requirements For this purpose, earnings include income subject to Idaho income tax withholding but don’t include stock options or restricted stock grants. An existing employee of the taxpayer or a related taxpayer who’s transferred to a new position at the project site won’t qualify as a new employee unless the transfer results in a net new job in Idaho. Once reached, you must maintain the net increase in employment at the project site for the rest of the project period. Tax Incentives If you’ve met or will meet the tax incentive criteria, you’re eligible to claim the tax incentives listed in the table on page 2. Recapture If you certify you’ll meet the tax incentive criteria and then don’t meet that criteria, you’ll be required to recapture the full amount of any incentives claimed. You may need to recapture all or a portion of the incentives if you: • Dispose of an investment in new plant or building facilities or it no longer qualifies before being held for five years from the date placed in service • Don’t maintain the required level of employment for five years from the date the project period ends or • Don’t use, store or otherwise consume property that was allowed a sales tax exemption within the project site for a period of five full years from the date the property was placed in service. Page 1 of 2 Form 89SE — Instructions (continued) Small Employer Incentive Act – Idaho Code, Title 63, Chapter 44 and Chapter 6, Section 606A Incentive Credit Rate Limitations Carryover Can’t exceed 62.5% of tax Can’t exceed $750,000 in any tax year 14 years Investment Tax Credit (SE-ITC) Form 83 3.75% on qualified investment that’s placed in service during the project period anywhere in Idaho. Credit is instead of earning the 3% ITC. Real Property Improvement Tax Credit (SE-RPITC) Form 84 2.5% on investments in new plant and buildings and structural Can’t exceed $125,000 in components of buildings that don’t qualify for the ITC and are any tax year placed in service during the project period at the project site. 14 years New Jobs Tax Credit (SE-NJTC) Form 85 Varying credit rate from $1,500 to $3,000 per qualifying new Can’t exceed 62.5% of tax employee. Employee must earn a minimum of $24.04 per hour to qualify, be employed primarily within the project site on a full-time basis and work a minimum of nine months during the tax year. (See other requirements under New Employees.) 10 years Sales Tax Rebate Form TCR 25% rebate of all sales and use taxes that the taxpayer or its contractors actually paid on new plant and building facilities property constructed, located or installed within the project site during the project period. Growth Incentive Exemption County Board of Equalization of county where property that qualifies for the ITC or RPITC is located can exempt all or part of the value of the property from property tax. Specific Instructions Instructions are for lines not fully explained on the form. Write your business name, address, federal Employer Identification Number, contact person and title and the contact person’s phone number in the space at the top of the form. Line 1. Provide a detailed description of the project that qualifies for the incentives. Include additional sheets as necessary. Line 2. Enter the date the project started or will start. The start date can’t be earlier than January 1, 2006. The start date is the earlier of the date the first physical change to the project site is scheduled to occur or the date new employees related to the project site will be first employed in Idaho. Line 3. Enter the date the project ended or is scheduled to end. This date can’t be longer than 10 years or later than December 31, 2020. Line 5. For each year in the project period, enter the actual or estimated number of new jobs that have been or will be created within the project site. If a year listed on the form doesn’t fall within the project period, leave it blank. Line 6. For each year in the project period, enter the actual or estimated costs of capital investment in new plant and building facilities located within the project site. If a year listed on the form doesn’t fall within the project period, leave it blank. List the cost of property that qualifies for the ITC in 6a. List the cost of buildings and their structural components that don’t qualify for the ITC in 6b. Line 7. For each location in your project site, identify the total actual or projected cost of new plant and building facilities. The total of these amounts should match the sum of the totals for lines 6a and 6b. Line 4. For each project site, provide the street address. Include the percent of the the new plant and building facilities invested in the project that will be located at each separate location. The total of these percents must equal 100%. Contact us: In the Boise area: (208) 334-7660 | Toll free: (800) 972-7660 Hearing impaired (TDD) (800) 377-3529 tax.idaho.gov/contact EIN00093 07-15-2019 Page 2 of 2
Form 89SE, Certification for Idaho's Small Employer Tax Incentives
More about the Idaho FORM 89SE Corporate Income Tax
We last updated the Certification for Idaho's Small Employer Tax Incentives in March 2020, and the latest form we have available is for tax year 2019. This means that we don't yet have the updated form for the current tax year. Please check this page regularly, as we will post the updated form as soon as it is released by the Idaho State Tax Commission. You can print other Idaho tax forms here.
Other Idaho Corporate Income Tax Forms:
|Form Code||Form Name|
|FORM 42||Idaho Apportionment And Combined Reporting Adjustments|
|FORM 41||Idaho Corporation Income Tax Return|
|FORM 56||Idaho Net Operating Loss|
|FORM PTE-12||Idaho Schedule For Pass-Through Owners with Instructions|
|FORM 41ES||Quarterly Estimated Tax/Extension of Time Payment|
Idaho usually releases forms for the current tax year between January and April. We last updated Idaho FORM 89SE from the State Tax Commission in March 2020.
About the Corporate Income Tax
The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.
Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).
Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.
Historical Past-Year Versions of Idaho FORM 89SE
We have a total of six past-year versions of FORM 89SE in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
Form 89SE, Certification for Idaho's Small Employer Tax Incentives
Form 89SE, Certification for Idaho's Small Employer Tax Incentives
While we do our best to keep our list of Idaho Income Tax Forms up to date and complete, we cannot be held liable for errors or omissions. Is the form on this page out-of-date or not working? Please let us know and we will fix it ASAP.