Form Srdtc-1 - Strategic Research And Development Tax Credit Page 4
Download a blank fillable Form Srdtc-1 - Strategic Research And Development Tax Credit 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 Srdtc-1 - Strategic Research And Development Tax Credit 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
3
4
5
6be considered qualified property for purposes of the tax credit.
property purchased for use in an eligible research and development
project, plus the amount of qualified research expenses deducted by
INELIGIBLE PROPERTY
the taxpayer for federal income tax purposes.
Property purchased for research and development shall not include
Property Investment
the following:
To determine the amount of property investment eligible for the
1. Land and improvements thereto;
Strategic Research and Development Tax Credit, the net cost of
each property purchased is multiplied by the applicable percentage
2. Repair costs, including materials used in making the repair;
shown below according to the useful life of the property. In order
3. Motor vehicles licensed by the Department of Motor
to be eligible for the credit, the property must have been placed
Vehicles;
into use in West Virginia during the taxable year.
4. Airplanes;
If useful life is:
The applicable percentage is:
5. Property located or primarily used outside this State;
Less than 4 years
33⅓ %
6. Property acquired incident to the purchase of the stock or
assets of an industrial taxpayer which was or had been used
4 years or more but less than 6 years
66⅔ %
by the seller in its industrial business in this State, or which
6 years or more
100 %
was previously designated property purchased for either
the business investment and jobs expansion credit or the
EXAMPLE
economic opportunity tax credit, property purchased for
If a taxpayer purchases $30,000 of machinery with a useful life of
either the industrial expansion and revitalization credit or
four years for use in an eligible research and development project,
the manufacturing investment tax credit, property purchased
the eligible investment is equal to $20,000. The eligible investment
for the research and development project credit, or property
is calculated by multiplying the cost of machinery, $30,000 times
purchased for the coal-loading facility credit.
the applicable percentage according to the useful life, 66 ⅔%, to
7. Property purchased or placed into service prior to January
arrive at $20,000.
1, 2003.
QUALIFIED RESEARCH EXPENSES
NET COST
Qualified research expenses means the sum of in-house and
Net cost is the net monetary consideration provided for acquisition
contract research expenses paid or incurred for qualified research
of title and/or ownership to the subject property. Net cost shall
allocated to West Virginia by an eligible taxpayer. Qualified research
not include the value of any property given in trade or exchange
expenses do not include any expense that must be capitalized and
for property purchased for an eligible research and development
depreciated for federal income tax purposes, or any expenditure
project. If property is damaged or destroyed by fire, flood, storm or
paid or incurred for the purpose of ascertaining the existence,
other casualty or is stolen, the cost of replacement shall not include
location, extent or quality of any deposit of coal, limestone, or other
any insurance proceeds received in compensation for the loss.
natural resource, including oil or gas.
In the case of leased property, net cost is the rent reserved for the
In-House Research Expenses
primary term of the lease, not to exceed 20 years.
In-house research expenses include:
In the case of self-constructed property, the cost thereof is the
amount of property charged to the capital account for purposes of
A. Wages paid or incurred to an employee for qualified services
depreciation.
performed in this State by such employee;
B. Amounts paid or incurred for supplies used in the conduct
PROPERTY PURCHASED FOR
of qualified research in this State; and
MULTIPLE BUSINESS USE
C. Amounts paid or incurred to another person for the right
If property is purchased for multiple business use, including use as
to use personal property in the conduct of qualified research
a component part of an eligible research and development project
in this State.
together with some other business or occupation not qualifying (for
Qualified services include services consisting of:
example, retailing), the cost of the property must be apportioned.
The apportionment of multiple-use properties must be thoroughly
A. Engaging in qualified research in this State; or
supported and explained by separate documents submitted with
the application.
B. Engaging in the direct supervision or direct support of
research activities in this State, which constitute qualified
ELIGIBLE INVESTMENT
research.
If substantially all of the services performed by an individual for
The eligible investment in a research and development project is
the taxpayer during the taxable year consist of services meeting
the sum of the applicable percentage of the cost of depreciable
2
2
t
t
Rev. 9/12
Rev. 9/12
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial