Fillable Form Ia 128 - Iowa Research Activities Credit

2013 IA 128 Line Instructions

PART II -

PART I -

Percentage of Research Activities

Computation of Iowa

Occurring within Iowa

Research Activities Credit

Lines 17, 18, 21, 22, and 23. For these lines, enter only

Line 1. Enter the amounts you paid or incurred to

that portion of lines 1, 2, 5, 6, and 7 respectively that are

energy research consortia. In general, an energy

for qualified expenses occurring in Iowa.

research consortium is any organization described in

section 501(c)(3) of the Internal Revenue Code (IRC)

Line 19. Enter the amount on line 3 that is attributable to

exempt from tax under section 501(a) of the IRC,

Iowa sources. For purposes of apportionment, the amount

organized and operated primarily to conduct energy

on line 3 should be prorated by the amount on line 18

research, and not a private foundation.

divided by the amount on line 2.

Line 2. Corporations other than S corporations,

Line 24. Enter the amount on line 8 that is attributable to

personal holding companies, service organizations,

Iowa sources. For purposes of apportionment, the amount

limited liability companies, and partnerships enter cash

on line 8 should be prorated by the ratio of contract

payments to a qualified university or scientific research

services performed in Iowa to total qualified contract

organization pursuant to a written contract.

expenses. Do not include any expenses that are already

reflected in line 2 or line 18.

Line 3. Enter the base period amount as defined in

section 41(c) of the Internal Revenue Code. A portion

Line 30. Enter this figure on the IA 148 Tax Credits

of this amount not to exceed the amount on line 2 can

Schedule under Part II using tax credit code 58.

also be treated as a contract research expense on line 8

Line 31. Enter this figure on the IA 148 Tax Credits

of this form subject to the 65% or 75% limitation.

Schedule under Part II using tax credit code 59 and

Line 4. If line 2 is greater than line 3, enter the

include your certificate number.

difference. If line 3 is greater than line 2, enter zero.

Line 32. If the taxpayer has received any pass-through

Line 5. Enter any wages paid or incurred to an

Research Activities Credit from a partnership, LLC, S

employee for qualified services performed by such

corporation, estate, or trust, indicate that amount on

employee.

this line. Also enter the amount of line 32 on Part II of

the IA 148 Tax Credits Schedule using tax credit code

Line 6. Enter the amounts paid or incurred for supplies

58, and provide the pass-through name and Federal

used in the conduct of qualified research.

Employer Identification Number (FEIN) in Part IV of

Line 7. Enter the amount paid or incurred to another

the IA 148 Tax Credits Schedule. If the taxpayer has

person for the right to use computers in the conduct of

received multiple pass-through Research Activities

qualified research. This entry must be reduced by any

Credit(s), sum all credits and enter on this line, but list

amount you receive or accrue from any other person

the claims separately on Part II of the IA 148 Tax

for the right to use substantially identical personal

Credits Schedule, providing each pass-through name

property.

and FEIN in Part IV.

Line 8. Include 65% of any amount paid or incurred

Line 33. If the taxpayer has received any pass-through

for qualified research performed on your behalf. Also,

Supplemental Research Activities Credit from a

include 65% of that portion of line 3 that does not

partnership, LLC, S corporation, estate, or trust,

exceed line 2. Use 75% in place of 65% for payments

indicate that amount on this line. Also enter the

made to a qualified research consortium.

amount of line 33 on Part II of the IA 148 Tax Credits

Line 10. Enter the fixed-base percentage rounding to

Schedule using tax credit code 59, include your

four decimal places, not to exceed 16%. See section 41

certificate number. and provide the pass-through name

and FEIN in Part IV of the IA 148 Tax Credits Schedule.

Line 11. Enter the average annual gross receipts for

If the taxpayer has received multiple pass-through

the four tax years preceding the tax year for which the

Supplemental Research Activities Credit(s), sum all

credit is being determined. For any short year you may

credits and enter on this line, but list the claims

be required to annualize gross receipts. See IRC

separately on Part II of the IA 148 Tax Credits Schedule,

sections 41(c)(1)(b) and 41(f)(4) for details.

providing each pass-through name and FEIN in Part IV.

The IA 148 Tax Credits Schedule must be completed.

41-128c (07/15/13)

Form Ia 128 - Iowa Research Activities Credit - 2013 Page 3

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