Instructions For Research And Development Small Business Tax Credit Claim Form Rpd-41298

RPD-41298

State of New Mexico - Taxation and Revenue Department

Rev. 03/2007

RESEARCH AND DEVELOPMENT SMALL BUSINESS TAX CREDIT CLAIM FORM

INSTRUCTIONS

ABOUT THIS CREDIT: The Research and Development Small

related to style, taste, cosmetic or seasonal design factors.

Business Tax Credit is available for a qualified research and

development small business for reporting periods beginning

"Qualified research expenditure" means an expenditure di-

July 1, 2005, and ending June 30, 2009, but for no more than

rectly related to qualified research, but does not include any

35 consecutive calendar months after the first month for which

expenditure on research funded by any grant, contract or

a claim for the credit is made by a taxpayer or by a person to

similar mechanism by another person or governmental entity,

whom the taxpayer is a successor, pursuant to Section 7-1-61

and does not include any expenditure on property that is owned

NMSA 1978.

by a municipality or county in connection with an industrial

revenue bond project or expenditures for which the taxpayer

The amount of the credit is equal to the sum of all gross receipts

has received any credit pursuant to the Capital Equipment Tax

taxes, compensating taxes and withholding taxes due to the

Credit Act, the Investment Credit Act or the Technology Jobs

state or payable by the qualifying small business for the

Tax Credit Act.

calendar month in which the small business qualifies.

A taxpayer is not eligible for the credit with respect to

CLAIMING THE RESEARCH AND DEVELOPMENT SMALL

a calendar month:

BUSINESS TAX CREDIT: The taxpayer may claim the credit

•

before July 2005, or after June 2009

within one year after the end of the report period. To claim the

•

that is more than 35 consecutive calendar months after the

credit attach Form RPD-41298, Research and Development

first month for which a claim for the credit is made by the

Small Business Tax Credit Claim Form, to the CRS-1 return.

taxpayer or by the successor in business as defined in

Claiming the credit against a report period renders the taxpayer

Section 7-1-61 NMSA 1978,

ineligible to claim the investment credit or technology jobs tax

•

credit against the same report period.

after which the qualified research and development small

business employs more than 25 employees on a full-time-

A report period is a calendar month, quarter or semiannual

equivalent basis,

period, according to the filing frequency listed on your Regis-

•

in a fiscal year of the qualified research and development*

tration Certificate. If the taxpayer determines that it does not

small business after the first fiscal year in which that

qualify for a calendar month during the report period, the

business has total revenues in excess of $5 million,

taxpayer may not claim the credit for that calendar month, but

•

after the calendar month in which more than 50% of the

may qualify during other months within the reporting period.

qualified research and development small business' voting

securities or other equity interests having the right to

DEFINITIONS:

designate or elect the board of directors or other governing

*"Qualified research and development small business" means

body of that business are owned directly or indirectly by

a business including a corporation, general partnership,

another business,

limited partnership, limited liability company, sole propri-

•

if the business was not a qualified research development

etorship or other similar entity, that:

small business in the 12-month calendar period ending

(1) employed no more than 25 employees on a full-time-

with that calendar month,

equivalent basis in any prior calendar month;

•

during which the taxpayer is the beneficiary of an industrial

(2) had total revenues of no more than $5 million in any prior

fiscal year;

revenue bond issued by a municipality or county, or

•

(3) did not in any prior calendar month have more than 50% of

during which the taxpayer sold any goods of which the

its voting securities or other equity interest with the right

taxpayer is not a manufacturer, unless the taxpayer has

to designate or elect the board of directors or other

received an appropriate NTTC for such sale or sales.

governing body of the qualified business owned directly or

indirectly by another business; and

FORM INSTRUCTIONS: Complete all information requested

(4) has made qualified research expenditures for the period of

in the address block. Complete Sections I and I. To qualify you

12 calendar months ending with the month for which the

must be able to answer yes to all questions in Section II. In

credit is sought of at least 20% of its total expenditures for

Section III, indicate the report period of the CRS-1 return and the

those 12 calendar months.

amount of credit to be applied to this CRS-1 return. If applicable,

attach a description of the qualified research and development

"Qualified research" means research that is undertaken for the

performed by the business. Sign and date the application.

purpose of discovering information that is technological in

nature and the application of which is intended to be useful in

Mail to the CRS-1 return and Form RPD-41298 to:

the development of a new or improved business component of

Taxation and Revenue Department

the taxpayer, and in which substantially all activities constitute

Administrative Resolution and Services Bureau

elements of a process of experimentation related to new or

P.O. Box 630

improved function, performance, reliability or qualify, but not

Santa Fe, NM 87504-0630

Instructions For Research And Development Small Business Tax Credit Claim Form Rpd-41298 - 2007

Related Articles

Related forms

Related Categories