Form Rsch - Increase Research And Development Activities Credit - Montana Department Of Revenue - 2010 Page 2
Download a blank fillable Form Rsch - Increase Research And Development Activities Credit - Montana Department Of Revenue - 2010 in PDF format just by clicking the "DOWNLOAD PDF" button.
Open the file in any PDF-viewing software. Adobe Reader or any alternative for Windows or MacOS are required to access and complete fillable content.
Complete Form Rsch - Increase Research And Development Activities Credit - Montana Department Of Revenue - 2010 with your personal data - all interactive fields are highlighted in places where you should type, access drop-down lists or select multiple-choice options.
Some fillable PDF-files have the option of saving the completed form that contains your own data for later use or sending it out straight away.
ADVERTISEMENT
1
2
3Information about Form RSCH
For a small business corporation, partnership or limited
liability company that claims credit for increasing
Use Form RSCH to calculate and claim a credit for
research activities, the credit must be attributed to
increasing the research and development activities
the individual shareholders, partners, members or
of your trade or business. To compute your tax credit,
managers in the same proportion that is used to
complete Parts I through III.
report income or loss for Montana tax purposes. The
Please Note:
allocations in IRC § 41(f) do not apply.
•
You can claim a credit for only those research
My tax credit exceeds my income tax liability. Can
and development activities that are conducted in
the unused credit be carried back or forward to
Montana.
another tax year?
•
You must include a copy of federal Form 6765 and
If the research credit cannot be used because of tax
supporting documents in order to claim this credit.
liability limitations, it can be carried back two years and
•
Section references are to the Internal Revenue
carried forward up to fifteen years. The entire amount
Code unless otherwise noted.
of the credit that is not used in the year that it is earned
must be carried first to the earliest tax year in which
What are credits for Qualified Research Activities?
the credit can be applied and then to each succeeding
“Qualified research activities” means research for
year. Please attach a schedule that documents any
which your expenditures can be treated as IRC §
credit carryover.
174 expenses. Your research must be undertaken to
discover information that is technological in nature.
Instructions
Your intention for applying this research must be to
develop a new or improved business component. All of
Part I
the elements of this research must relate to a new or
Credit Calculation for Basic Research Payments
improved function, performance, reliability or quality.
Line 1. A corporation, individual, small business
For in-house research expenses, you may meet the
corporation, partnership or limited liability company is
requirement if you incurred the expenses in carrying
eligible for a “basic research” credit if the payments to
on a trade or business where your principal purpose is
a qualified university or scientific research organization
for conducting research and using the results of that
(under a written contract) exceed a base period
research to actively conduct a future trade or business.
amount (based on general university giving and certain
The following activities do not qualify for the research
other maintenance-of-effort levels for three preceding
and development tax credit:
years). Enter your payments for basic research
•
research conducted after commercial production
conducted in Montana on line 1. See IRC § 41(e) for
has already begun
details.
•
research that adapts an existing product or process
Line 2. Enter the base period amount as defined in
to a particular customer’s needs
IRC § 41(e). Line 2 cannot exceed the amount on
line 1.
•
duplication of an existing product or process
•
surveys or studies
Part II
•
research that relates to a certain internal use of
Credit Calculation for Qualified Research Expenses
computer software
Lines 4 through 7. These lines pertain to qualified
•
research that is conducted outside of the State of
research expenditures paid or incurred for research
Montana
activities that were conducted in Montana. For multi-
state taxpayers, a by-state breakdown of wages,
•
research in the social sciences, arts or humanities
supplies and qualified research expenses must be
•
research that is funded by another person (or
submitted with this form.
government entity)
Line 6. See IRC § 41(b)(2)(A) for rules on leased
See IRC § 41 for other definitions concerning this tax
property if the taxpayer received payments for the
credit.
rental or lease of substantial identical property.
Who can claim this credit?
Line 7. Include 65% (.65) of any amount that you
A corporation, individual, small business corporation,
paid or incurred for qualified research performed on
partnership, or limited liability company claiming
your behalf. Prepaid tract research expenses are
a credit for increasing research activities should
considered paid in the year that the research was
complete this form and attach it to their tax return.
actually done. Also include 65% (.65) of that portion
of line 1 basic research payments that does not
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial