Idaho Admin. Code r. 35.01.01.716 - IDAHO INVESTMENT TAX CREDIT: RECORD-KEEPING REQUIREMENTS

Section 63-3029B, Idaho Code

01. Information Required. Each taxpayer must retain and make available, on request, records for each item of property included in the computation of the investment tax credit claimed on an income tax return subject to examination. The records must include all of the following: (4-6-23)

a. A description of the property; (4-6-23)

b. The asset number assigned to the item of property, if applicable; (4-6-23)

c. The acquisition date and date placed in service; (4-6-23)

d. The basis of the property; (4-6-23)

e. The class of the property for recovery property or the estimated useful life for nonrecovery property; (4-6-23)

f. The designation as new or used property; (4-6-23)

g. The location and utilization (the usage both in and outside Idaho) of the property; (4-6-23)

h. The retirement, disposition, or date transferred out of Idaho, or date no longer used in Idaho, if applicable; and (4-6-23)

i. The reason for acquisition if acquired prior to January 1, 1995. (4-6-23)

02. Accounting Records Subject to Examination. Accounting records that may need to be examined to document acquisition, disposition, location, and utilization of assets include the following: (4-6-23)

a. Accounting documents that contain asset and account designations and descriptions. These documents include a chart of accounts, the accounting manual, controller's manual, or other documents containing this information. (4-6-23)

b. Asset location records including asset directories, asset registers, insurance records, property tax records, or similar asset inventory documents. (4-6-23)

c. Records verifying ownership including purchase contracts and cancelled checks. (4-6-23)

d. Invoices, shipping documents, and similar documents reflecting the transfer of assets in and out of Idaho. (4-6-23)

e. Purchase orders, authorizations for expenditures or other records that identify the reason for acquisition for property acquired prior to January 1, 1995. (4-6-23)

f. Log books measuring the use of property used both in and outside Idaho. These logs must be maintained for each item of property on which investment tax credit is claimed. These logs should measure use of property in accordance with the most accurate method for measuring the extent of use in Idaho. For example, use in Idaho of trucks, trailers, locomotives, and railcars are to be calculated according to actual mileage in and outside Idaho. (4-6-23)

g. A system that verifies that property on which the investment tax credit was claimed continues to maintain its status as Idaho qualifying property throughout the recapture period. (4-6-23)

03. Failure to Maintain Adequate Records. Failure to maintain any of the records required by this rule may result in the disallowance of the credit claimed. (4-6-23)

04. Unitary Taxpayers. Corporations claiming investment tax credit must provide a calculation of the credit earned and used by each member of the combined group. The schedule must clearly identify shared credit and the computation of any credit carryovers. (4-6-23)

Notes

Idaho Admin. Code r. 35.01.01.716