You Deserve the Credit
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CONTENTS
Federal Individual Tax Credits...1-3
Foreign Tax Credit...1
Child & Dependent Care Credit
Federal Tax on Fuels
Residential Energy Credits
Residential Energy Effi cient Property Credit
Nonbusiness Energy Property Credit
Alcohol & Cellulosic Biofuel Fuels Credit
Mortgage Interest Credit
Prior Year Minimum Tax Credit (Prior Year AMT)
Child Tax Credit...2
Orphan Drug Credit
Qualifi ed Plug-In Electric Drive Motor Vehicle Credit
Adoption Credit
American Opportunity Education Credit
Lifetime Learning Credit
Biodiesel & Renewal Diesel Fuels Credit
Earned Income Credit
Retirement Savings Contributions Credit...3
Health Coverage Tax Credit
Nonconventional Source Fuel Credit
Alternative Fuel Vehicle Refueling Property Credit
Federal Business Tax Credits...3-6
Fuel Tax Credit...3
Alternative Motor Vehicle (Hybrid, Lean Burn, Alternative)
Alternative Vehicle Refueling Property
New Qualifi ed Plug-In Electric Drive Vehicles...4
Small Business Health Care Credit
Increasing Research Activities
Low Income Housing
Disabled Access Credit
Indian Employment Credit
Tip Credit for Employers...5
Small Employer Pension Plan Startup
Employer Provided Child Care
Energy Effi cient Home-Builders
Agricultural Chemicals Security
Employer Wage Credit for Employees who are Active Duty Uniformed Services...6
Work Opportunity
Empowerment Zone Employment Credit
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CONTENTS
Continued...
Utah Credits & Exclusions...6-10
Agricultural Off-Highway Gas or Undyed Diesel Fuel Credit...6
At-Home Parent Tax Credit
Capital Gain Transactions Tax Credit...7
Clean Fuel Vehicle Tax Credit
Combat Related Death Credit
Enterprise Zone Tax Credit
Farm Operations Hand Tools Tax Credit
Gold & Silver Coin Sale Credit
Health Benefit Plan Tax Credit...8
Historic Preservation Credit
Live Organ Donation Expenses Credit
Low-Income Housing Credit
Medical Care Savings Account (MSA) Credit
Recycling Market Development Zones Tax Credit
Renewable Energy Systems Credit...9
Renewable Residential Energy Systems Credit
Renewable Commercial Energy Systems Credit
Research Activities Credit
Retirement Income Tax Credit
Retirement Credit for Taxpayers Age 65 and Over
Retirement Credit for Taxpayers Under Age 65
Qualified Sheltered Workshop Cash Contribution Credit
Solar Project Credit
Special Needs Adoption Credit...10
Targeted Business Income Tax Credit
Taxes Paid to Another State Credit
Utah Educational Saving Plan (UESP)
Recycling Market Development Zones Tax Credit
Idaho Credits & Exclusions...10-11
Investment Tax Credit...10
Idaho Hire One Act Credit
Small Employer Real Property Improvement Taxt Credit...11
Small Employer New Jobs Tax Credit
Research Activity Credit
Capital Gain Exclusion
Foreign Tax Credit
Federal Tax on Fuels
Alcohol & Cellulosic Biofuel Fuels Credit
Prior Year Minimum Tax Credit (Prior Year AMT)
Residential Energy Credits
Residential Energy Efficient Property Credit
Nonbusiness Energy Property Credit
Child & Dependent Care Credit
Mortgage Interest Credit
Federal Individual Tax Credits
Form # 1116
Form # 4136 Pub # 510
Form # 6478
Form # 8801
Form # 5695
Form # 2441 Pub # 503
Form # 8396
Credit for taxes paid to a foreign country
Non-refundable credit, cannot be carried back or carried forward
Foreign sourced passive category income may not require form 1116 (includes most interest and dividends)
Credit for certain nontaxable uses (or sales) of fuel
Credit amount based on number of gallons and rate on Form 4136
Definitions of nontaxable qualifications on type of use table (instructions for Form 4136)
Credit for producers and buyers of cellulosic biofuels
All producers of cellulosic or second generation biofuel must be registered with the IRS Credit is calculated by multiplying the number of gallons sold or used by $1.01
Non-refundable credit for AMT paid in prior tax years Can only be claimed in a year when you don’t owe AMT Credit can be carried forward
Credit for energy saving improvements made to your home
The credit is 30% of the cost of certain solar, wind, geothermal and fuel cell property (including installation)
Credit for qualified energy efficiency improvements
The credit is 10% of the amount paid for energy saving property
Improvements include insulation, windows, exterior doors, certain heat pumps, water heaters, boilers, and furnaces Non-refundable credit of up to 35% of expenses paid to care for your child or dependent
Dependent must be age 13 or younger or be unable to care for himself or herself Expenses must be paid so that you (and spouse if filing jointly) can work or look for work
You must have earned income (spouse is treated as having earned income if he/she is a full-time student or disabled) Payments cannot be paid to your spouse or someone you claim as a dependent
Filing status must not be married filing separately
Credit for interest paid on qualified mortgage - must have received a Mortgage Credit Certificate (MCC) Non-refundable - can be carried forward up to 3 years
Mortgage interest deduction on Schedule A must be reduced by credit on line 3 of form 8396 Credit may have to be recaptured if home is sold within 9 years of claiming credit
You can refinance without losing the credit if a new MCC is issued
Child Tax Credit
Orphan Drug Credit
Qualified Plug-In Electric Drive Motor Vehicle Credit
Adoption Credit
American Opportunity Education Credit
Lifetime Learning Credit
Earned Income Credit
Biodiesel & Renewal Diesel Fuels Credit
Form # 8812 Pub # 972
Form # 8834 Pub # IRC 30D
Form # 8839
Form # 8863 Pub # 970
Form # 8863 Pub # 970
Form # 8867 Pub # 596
Form # 8864
Form # 8820
Credit of up to $1,000 for each qualifying child Child must be under age 17
Use form 8812 if child has ITIN instead of SSN
Credit for 50% of qualified clinical testing expenses for rare diseases
Expenses would be described as qualified research expenses under section 41
Must coordinate credit expenses with expenses used to calculate the increasing research activities credit
Non-refundable credit of up to $7,500 ($2,500 minimum) for purchase of new qualified electric vehicle Credit will begin to be phased out after 200,000 vehicles have been sold by US manufacturers Applies to vehicles acquired after December 31, 2009
Credit of up to $12,650 per child for qualified adoption expenses Non-refundable credit after 2011 - can be carried forward to future years Paper filing of return required when claiming credit
Phase-out begins when AGI exceeds $189,710
Credit of up to $2,500 per student for qualified education expenses ($4,000 total expense) 40% Refundable - 60% Non-refundable
Available for first fours years of post-secondary education (can be claimed for only 4 tax years) Student must be at least half-time and be pursuing a degree
Non-refundable credit of up to $2,000 per return for qualified education expenses (20% of up to $10,000 of expenses) Available for all years of post-secondary education and for courses to acquire or improve job skills
Student does not need to be pursuing a degree Available for one or more courses
Refundable credit based on AGI, filing status, and dependents (max credit $5,891) Must have earned income below AGI limits and investment income of less than $3,200 Filing status cannot be Married Filing Separately
Cannot qualify for credit if filing form 2555 (Foreign Earned Income)
Credit of $1.00 /gallon for most biodiesel and renewable diesel fuels used or sold Fuel must meet requirements established by EPA
Generally must attach the Certificate for Biodiesel, and if applicable, Statement of Biodiesel Reseller
Retirement Savings Contributions Credit
Fuel Tax Credit
Alternative Motor Vehicle (Hybrid, Lean Burn, Alternative)
Alternative Vehicle Refueling Property
Nonconventional Source Fuel Credit
Alternative Fuel Vehicle Refueling Property Credit
Health Coverage Tax Credit
Federal Individual Tax Credits Continued...
Federal Business Tax Credits
Form # 8880
Form # 4136
Form # 8911
Form # 8910
Form # 8907
Form # 8911
Form # 8885
Non-refundable credit of up to $1,000 ($2,000 if MFJ) for eligible contributions to a retirement savings account Credit is 10%, 20%, or 50% of eligible contribution amount depending on AGI
Must be Age 18 or older, NOT a full-time student, NOT claimed as a dependent on another return and AGI must fall below limits
Low-speed and 2 or 3 wheel vehicles, not electric cars
Credit is 10% of the cost of the vehicle, up to maximum of $2,500 Purchases made after February 17, 2009 and before January 1, 2014 Credit is non-refundable
Fuel used on a farm for farming purposes
Fuel used in a boat engaged in commercial fishing Off-highway business use
Credit is $2.43 per gallon
Qualified property includes property other than buildings and structural components used for storing and dispensing fuels such as natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen, electricity, and certain clean-burning fuel mixtures
Credit is 30% and capped at $50,000/$30,000 for non-hydrogen-related non-depreciable business property and $2,000/$1,000 for non-hydrogen-related non-depreciable personal property
Credit expires 12/31/2014 for hydrogen refueling stations and the remainder of the credit expires 12/31/2013 Credit for coke or coke gas you produced and sold during the tax year
The original use of the facility must have begun with the taxpayer
Fuel qualifies if it is not produced in a facility that produces coke or coke gas from petroleum based products
Credit for alternative fuel vehicle refueling property
Non-refundable credit - cannot be carried back or carried forward The credit is the smaller of 30% of the property’s cost or $1,000 Pays up to 72.5% of qualified health insurance premiums Must meet specific candidate requirements
Must meet general requirements
Low Income Housing
New Qualified Plug-In Electric Drive Vehicles
Increasing Research Activities
Disabled Access Credit
Small Business Health Care Credit
Form # 8586
Form # 8936
Form # 6765
Form # 8826
Form # 8941
Credit applies to qualified low-income housing buildings placed in service after 1986
Credit rate of 30%-70% of qualified building basis available at a rate of 10% per year for 10 years
Base credit of $2,500 plus additional amount based upon battery capacity up to $5,000 for a max credit of $7,500 Non-refundable credit, but part of general business credit
Vehicles must be newly purchased, have four or more wheels, have GVW rating of less than 14,000 lbs, and draw propulsion using battery with at least four kilowatt hours that can be recharged from external source of electricity
Incremental credit for increasing research activities equal to sum of 20% of QRE’s
Credit for development of new or improved products, manufacturing processes, design and fabrication of tool and dies, development of production equipment, development of new or improved software used in production process
Expenditures include wages paid or incurred for qualified services, amounts paid for supplies used in qualified research, amounts paid or incurred to another person for right to use computers in the conduct of qualified research
50% credit ($5,000 maximum per year)
Non-refundable credit for business that pays or incurs expenses to provide access to persons who have disabilities Business must have gross receipts of less than $1,000,000 and no more than 30 full-time employees
Eligible expenses include removing barriers that prevent business from being accessible, provide qualified interpreters, provide qualified readers, taped texts, or acquire or modify equipment and devices for individuals with disabilities
Businesses with fewer than 25 employees receive credit covering up to 35% of health care premiums Credit increases to 50% for 2014-2015, but only for insurance purchased through the exchange (marketplace) Credit ends 12/31/2015
Credit phases out at 25 employees and $50,000 annual wage threshold Credit applies against AMT, but is non-refundable as a general business credit
Employer must pay equivalent of 50% or more of cost of self-only coverage for employee Only employer portion qualifies for credit
Indian Employment Credit
Form # 8845
Credit of 20% of the excess of current qualified wages and qualified employee health insurance costs (not to exceed $20,000) over the sum of corresponding amounts paid or incurred during calendar year 1993
Employee must be an enrolled member of Indian tribe or spouse of enrolled member of Indian tribe Employee must perform substantially all services for employer within an Indian reservation While performing services, employee must have main home on or near that reservation
Federal Business Tax Credits Continued...
Agricultural Chemicals Security
Form # 8931
Credit of 30% of qualified agricultural chemical security costs paid or incurred
Qualified costs include employee security training and background checks, limitation and prevention of access to controls of specified agricul-tural chemicals, tagging, locking tank valves and additives to prevent theft, perimeter protection, security lighting, cameras, etc.
Limit of $100,000 per building and $2,000,000 limit per taxpayer
Eligible businesses includes any person engaged in selling agricultural products, including agricultural chemicals, at retail to farmers and ranchers; manufacturing, formulating, distributing, or aerially applying specified agricultural chemicals
Tip Credit for Employers
Energy Efficient Homes-Builders
Employer Provided Child Care
Small Employer Pension Plan Startup
Form # 8846
Form # 8908
Form # 8882
Form # 8881
Credit is equal to employer’s portion of Social Security and Medicare taxes paid on tips where tipping is customary
Cannot get credit for the part of Social Security and Medicare tax on those tips that are used to meet federal minimum wage rate that applies to the employee under the Fair Labor Standards Act
Credit is 100% of eligible amounts. If business had employees who received tips from customers for providing, delivering, or serving food or beverages for consumption and employer paid or incurred Social Security and Medicare taxes on these tips
Credit only applies to tips received by food and beverage employees, it is not applicable to other tipped employees Credit is available without regard to whether employees reported tips to the employer
Credit can be used to offset income tax, but not employment tax
Credit available for all new homes, including manufactured homes
The home must be located in the U.S. and substantially completed after 08/08/2005 and before 01/01/2014
Home must meet statutory energy saving requirements and acquired from eligible contractor after 12/31/2005 and before 01/01/2014 for use as residence
No limit on number of homes for which a builder may claim the credit
Contractor must obtain certification from eligible certifier that home meets requirement of Section 45L Credit amount of $2,000 for homes meeting the 50% standard and $1,000 for those meeting the 30% standard
Credit of 25% of qualified childcare facility expenditures plus 10% of qualified childcare resource and referral expenditures Credit is limited to $150,000 per tax year
Qualified childcare expenditures are amounts paid to acquire, rehabilitate or expand property that is to be used as part of a qualified childcare facility, is depreciable (or amortizable) property, and is not part of principal residence of taxpayer or employee of taxpayer
Principal use of facility must be to provide childcare
Enrollment in facility must be open to employees or taxpayer during the tax year
If facility is principal trade or business of taxpayer, at least 30% of enrollees of facility must be dependents of employees of the taxpayer Basis of building is reduced by amount of credit
Credit of 50% of cost to set up and administer a new qualified employer plan and educating employees about it Maximum amount of credit is $500
Business must have no more than 100 employees during the tax year preceding the credit year who received at least $5,000 of compensation
Employer Wage Credit for Employees who are Active Duty Uniformed Services
Work Opportunity
Utah Credits & Exclusions
Form # 8932
Form # 5884
Credit for employer differential wage payments made after 2008 and before 2014
Credit is 20% of up to $20,000 of differential wage payments paid to each qualified employee during the tax year
Payment must be made by eligible small business employer to a qualified employee during which the employee is performing service in the uniformed services while on active duty for a period of more than 30 days
An eligible small employer employed on average fewer than 50 employees and has a written plan that provides eligible differential wage payments to every qualified employee of the employer
Covers employees who begin work after 2011 and before 2014 and are members of targeted groups Credit can be claimed on original or amended return
Employer must request and be issued a certification for each employee from the state employment security agency (SESA) Wages qualifying for the credit are wages subject to FUTA
Credit amount is based on wages paid and the target group each employee falls under (see Form 5884 instructions for complete list)
Empowerment Zone Employment Credit
Form # 8844
Credit of up to $3,000 for wages paid to qualified employee in an Empowerment Zone Employee must work for at least 90 days unless exceptions apply
Alternative Fuel Vehicle Refueling Property Credit
Agricultural Off-Highway Gas or Undyed Diesel Fuel Credit
At-Home Parent Tax Credit
Form # 8911
Credit for alternative fuel vehicle refueling property
Non-refundable credit - cannot be carried back or carried forward The credit is the smaller of 30% of the propery’s cost or $30,000
Credit for gasoline or undyed diesel fuel used exclusively for commercial, non-highway agricultural use Credit rate is 24.5 cents per gallon
Credit is refundable
Activities that do not qualify are golf courses, horse racing, boat operations, highway seeding, vehicles registered for highway use
$100 tax credit for full-time care of each qualifying infant by an at-home parent
“At-home parent” includes: biological mother or father, stepmother or father, adoptive parents, foster parents, legal guardian Child must be 12 months old or younger on last day of tax year for which credit is claimed
At-home parent must provide full-time care in the at-home parent’s residence Child must be claimed as a dependent on the at-home parent’s tax return
Sum of at-home parent’s total wages from W-2 and Federal Schedule C income must be $3,000 or less for the taxable year Federal adjusted gross income of all taxpayers filing the individual income tax return must be $50,000 or less
Credit is nonrefundable
There is no form for this credit, it is claimed by entering allowable credit on Utah TC-40A, Part 4, using code 01
Utah Credits & Exclusions Continued...
Farm Operations Hand Tools Tax Credit
Refundable credit for sales and use tax paid on hand tools purchased during tax year and used or consumed primarily and directly in a farming operation in Utah
Credit only applies if unit price of tool is more than $250
Credit is claimed by entering allowable credit on Utah TC-40A, part 5, code 48
Capital Gain Transactions Tax Credit
Enterprise Zone Tax Credit
Combat Related Death Credit
Clean Fuel Vehicle Tax Credit
Non-refundable credit for short-term and long-term gain on transaction Transaction must occur on or after January 1, 2008
At least 70% of gross proceeds from the transaction must be used to purchase qualifying stock in a Utah small business corporation within 12 months
Prior to the purchase of the qualifying stock, taxpayer cannot have an ownership interest in the Utah small business corporation that issued the stock
Credit is 5% of eligible short-term or long-term capital gain
Credit for certain businesses that hire new full-time employees, restore buildings, or meet certain other requirements in designated zone Credit amounts vary based on business type, number of employees, and other factors (see instructions for more detail)
Credit is reported on Utah TC40-A, using code 07
Non-refundable credit for military service member that was on active duty or in reserve component Combat related death must have occurred on or after January 1, 2010
Death must have occurred while serving in a combat zone, or be the result of a wound, disease, or injury incurred while serving in combat zone
Credit is equal to tax liability of the military service member in the year the military service member dies
Non-refundable credit for purchase of qualified new vehicles or conversion of vehicles or engines to use clean burning fuels Credit can be taken only once per vehicle and must be taken in taxable year the vehicle or engine is purchased or converted Credit amounts vary based on type of vehicle and type of fuel
Credit can be carried forward up to five years
Gold & Silver Coin Sale Credit
Non-refundable credit on capital gains recognized on sale or exchange of gold and silver coins issued by US government Capital gain transaction must result in short-term or long-term capital gain reported on Federal Schedule D
Capital gain must first be offset by any capital loss recognized for the year for federal purposes from the sale of gold and/or silver coin Transaction must be made in taxable years beginning on or after January 1, 2012
Credit is 5% of eligible capital gains
Credit is reported on TC-40A, or TC-41A, part 3, using code 26
Health Benefit Plan Tax Credit
Historic Preservation Credit
Non-refundable credit for certain health insurance premiums paid during taxable year
Credit is 5% of amount paid for health benefit plan only if you, your spouse (if a joint return), or dependent claimed on your return is not insured under health benefit plan maintained and funded in whole or part by you, your spouse’s, or your dependent’s current or former employer, or another person’s employer
You cannot claim the credit if you choose not to participate in a plan maintained and funded by a current or former employer
Non-refundable credit of 20% of qualified rehabilitation expenditures for residential certified historic buildings that are owner-occupied or rented
Credit is claimed in the year the project receives final certification from State Historic Preservation Office Project cost must exceed $10,000
Live Organ Donation Expenses Credit
Low-Income Housing Credit
Medical Care Savings Account (MSA) Credit
Recycling Market Development Zones Tax Credit
Non-refundable credit of up to $10,000 for living taxpayer who donates a qualified organ to another individual for medical transplanting Organs that qualify are: human bone marrow, any part of an intestine, kidney, liver, lung, or pancreas
Credit is based on expenses paid in connection with the donation including travel, lodging, or lost wage
Non-refundable tax credit determined by Utah Housing Corporation for owners of low-income housing project who also received part of federal low-income housing tax credit
When taxpayer is entitled to credit, the project owner will provide them with form TC-40TCAC Credit can be carried back three years or forward 5 years
Credit is claimed on Utah TC-40A, part 4, using code 08
Non-refundable credit of 5% of the greater of either the amount contributed to an MSA account (up to $2,000) or the total medical expenses paid from an MSA account
Cannot be carried back or carried forward
You must choose whether to deduct your MSA investment on your federal return, or claim the Utah credit, you cannot do both Non-qualified withdrawals from an MSA are taxable to the extent the amount was previously used to claim a credit on the Utah return
Two non-refundable credits can be claimed
5% credit on purchase of machinery and equipment used for commercial composting; or manufacturing facilities that manufacture, process, compound or produce recycled items
20% credit on expenditures up to $10,000 for rent, wages, supplies, tools, test inventory, and utilities made for establishing and operating recycling or composting technology in Utah
5% credit may be carried forward up to three years
Total credit may not exceed 40% of the Utah income tax liability
Qualifying purchases and expenditures must be certified by the Governor’s Office of Economic Development
Utah Credits & Exclusions Continued...
Renewable Energy Systems Credit
Retirement Income Tax Credit
Two credits are available
An energy system includes any active solar, passive solar, biomass, direct-use geothermal, geothermal heat pump, wind or hydro-energy system
Credits can be claimed in addition to any federal credit claimed
Two credits are available Credits are non-refundable
Credits will be phased-out by a percentage when modified gross income exceeds certain amounts (see phase-out calculation) Non-refundable credit for costs, including installation, of up to $2,000 for a residential energy system
May be carried forward up to four years Credit amount is transferrable if property is sold
Credit of up to $450 ($900 if Married Filing Jointly) Taxpayer must be age 65 as of December 31 of tax year
Refundable credit for costs, including installation, of up to $2,000 for a commercial energy system
Renewable Residential Energy Systems Credit (code 21)
Retirement Credit for Taxpayers Age 65 and Over
Renewable Commercial Energy Systems Credit (code 39)
Retirement Credit for Taxpayers Under Age 65
Research Activities Credits
Qualified Sheltered Workshop Cash Contribution Credit
Solar Project Credit
Non-refundable credit allowed for certain research expenses
5% of qualified research expenses in Utah that exceed base amount (defined under UC §59-10-1012(3))
5% of payments made to a qualified organization for basic research that exceed a base amount and 7.5% of qualified research expense Both 5% credits may be carried forward up to 14 years, 7.5% credit may not be carried forward
Credit for cash contributions made to a qualified non-profit sheltered workshop facility in Utah Non-refundable credit equal to the lesser of $200 or 50% of the total contribution
Credit cannot be carried back or carried forward
Division of Services of People with Disabilities maintains a list of qualified sheltered workshops
Non-refundable credit for purchases of units in a solar project sold by a qualifying political subdivision Credit of 25% of purchase amount up to a maximum of $2,000
Excess credit amount can be carried forward for up to 4 years Must be apportioned for nonresident and part-year individuals
Credit of up to 6% of eligible retirement income or $288 if lesser
Taxpayer must have been born before 1952 and be under age 65 as of December 31 of tax year Credit is calculated for eligible retirement income
Does not include income from 401(k) and 457 plans or social security benefits received by child of a deceased employee
Special Needs Adoption Credit
Targeted Business Income Tax Credit
Idaho Credits & Exclusions
Refundable credit of up to $1,000 for each special needs child adopted
Credit is claimed in the tax year the court issues the order granting an adoption occurring in Utah The child must be five years of age or older, under age 18 with a disability, or a member of a sibling group
Taxes Paid to Another State Credit
Investment Tax Credit
Idaho Hire One Act Credit
Utah Educational Savings Plan (UESP)
Recycling Market Development Zones Tax Credit
Refundable credit available to businesses providing a community investment project according to criteria in Utah Code Sections 63M-1-501, 63M-1-502 and 63M-1-503
Applicant must file an application with the local zone administrator by June 1 of the tax year
Credit cannot be claimed if you have claimed the Enterprise Zone Tax Credit or the Recycling Market Development Zones Tax Credit Use form TC-40TB, Targeted Business Tax Credit to claim credit
Non-refundable credit for income tax paid to another state
Must be Utah resident or part-year resident (part-year residents rarely qualify) The credit only applies to the portion of income taxed by both states
Complete and attach from TC-40S, Credit for Income Taxes Paid to Another State
Property must have useful life of three years or more
Property must be property for which you are allowed a deduction for depreciation or amortization Credit is limited to 50% of your Idaho income tax after deducting credit for tax paid to other states See form instructions for list of qualifying and nonqualifying property
Refundable credit based on employer’s unemployment insurance tax rating Credit is computed on gross wages of qualifying new employees
Credit can be claimed on qualifying new employees only if the employee: • received qualifying employer provided health care benefits
• received an average wage rate of at least $12 per hour if employed in an Idaho county with unemployment rate of 10% or more • received an average wage rate of at least $15 per hour if employed in an Idaho county with unemployment rate of less than 10% Credit cannot be claimed for an employee if the Idaho Small Employer New Jobs Tax Credit credit is claimed for same employee See form instructions for unemployment rates by county
Non-refundable credit of 5% of the actual contribution made to each beneficiary’s UESP account during tax year Maximum contribution amount for 2013 is $1,840 per beneficiary ($3,680 MFJ)
Credit cannot be carried back or carried forward
Non-refundable credit for taxpayers who hire a qualified recently deployed veteran of up to $2,400 in year 1 and $4,800 in year 2 Credit may be carried forward for up to 5 years
Qualified veteran must work at least 35 hours per week
The credit is taken in the first year in which the veteran was employed 45 consecutive weeks
Form # 49
Form # 72
w w w . c o o k m a r t i n . c o m
© D e c e m b e r 2 0 1 3 C o o k M a r t i n P o u l s o n . A l l r i g h t s r e s e r v e d .
632 North Main Street Logan, Utah 84321 Telephone: (435) 750-5566
Fax: (435) 787-4321 E-mail: info@cookmartin.com
2180 South 1300 East Suite 430 Salt Lake City, Utah 84106 Telephone: (801) 467-4450
Fax: (801) 364-4603 E-mail: info@cookmartin.com
Notes:
Idaho Credits & Exclusions Continued...
Small Employer Real Property Improvement Tax Credit
Small Employer New Jobs Tax Credit
Capital Gain Exclusion
Research Activity Credit
Must qualify by filing Form 89SE with Tax Commission to certify taxpayer qualifies for small employer incentives
SE-RPITC is allowed on buildings and structural components of buildings that do not qualify for the investment tax credit Buildings and structural components must be new property, used property does not qualify
Credit is limited to the lesser of $125,000 or Idaho income tax after allowing all other credits that may be claimed before SE-RPITC
Must qualify by filing Form 89SE with Tax Commission to certify taxpayer qualifies for small employer incentives If project period began during tax year, it must cover at least nine months or taxpayer doesn’t qualify for SE-NJTC Qualifying employees must earn more than $24.04 per hour and work a minimum of nine months during the tax year Credit is based on annual salary of qualifying employees (see Form 85 instructions for salary and credit amounts)
Deduction is 60% of capital gain net income included in federal taxable income from sale of Idaho property
Property must be real property held for at least 12 months, or tangible personal property used in a revenue-producing enterprise and held for at least 12 months
Gains from sale of stocks, easements, leasehold real properties, and other intangibles do not qualify
Capital gain from qualifying property held by S corporations, partnerships, trusts and estates, is eligible for deduction Gain or loss must be computed by pass-through entity and provided to taxpayer on Form IDK-1
Idaho conforms to the IRS definitions for the research credit, except only amounts related to research conducted in Idaho qualify for the Idaho research credit
Idaho credit doesn’t include the calculation of the alternative simplified credit Credit carryover is limited to 14 tax years
