Fillable Form Ia 128 - Iowa Research Activities Credit

2012 IA 128 Line Instructions

PART I -

PART II -

Computation of Credit

Percentage of Research Activities

for Increasing Research Activities

Occurring within Iowa

Line 1. Enter the amounts you paid or incurred to

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

energy research consortia. In general, an energy

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

research consortium is any organization described in

that are for qualified expenses occurring in Iowa.

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

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

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

to Iowa sources. For purposes of apportionment, the

organized and operated primarily to conduct energy

amount on line 3 should be prorated by the amount on

research, and not a private foundation.

line 18 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

personal holding companies, service organizations,

to Iowa sources. For purposes of apportionment, the

limited liability companies, and partnerships enter cash

amount on line 8 should be prorated by the ratio of

payments to a qualified university or scientific research

contract services performed in Iowa to total qualified

organization pursuant to a written contract.

contract expenses. Do not include any expenses that

Line 3. Enter the base period amount as defined in

are already reflected in line 2 or line 18.

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

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

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

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

Research Activities Credit from a partnership, LLC, S

Line 5. Enter any wages paid or incurred to an

corporation, estate, or trust, indicate that amount on

employee for qualified services performed by such

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

employee.

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

the IA 148 Tax Credits Schedule. If the taxpayer has

Line 7. Enter the amount paid or incurred to another

received multiple pass-through Research Activities

person for the right to use computers in the conduct of

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

qualified research. This entry must be reduced by any

the claims separately on Part II of the IA 148 Tax

amount you receive or accrue from any other person

Credits Schedule, providing each pass-through name

for the right to use substantially identical personal

and FEIN in Part IV.

property.

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

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

Supplemental Research Activities Credit from a

for qualified research performed on your behalf. Also,

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

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

indicate that amount on this line. Also enter the

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

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

made to a qualified research consortium.

Schedule using tax credit code 59, and provide the

Line 10. Enter the fixed-base percentage rounding to

pass-through name and FEIN in Part IV of the IA 148

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

Tax Credits Schedule. If the taxpayer has received

multiple pass-through Supplemental Research

Line 11. Enter the average annual gross receipts for

Activities Credit(s), sum all credits and enter on this

the four tax years preceding the tax year for which the

line, but list the claims separately on Part II of the IA

credit is being determined. For any short year you may

148 Tax Credits Schedule, providing each pass-

be required to annualize gross receipts. See IRC

through name and FEIN in Part IV.

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

The IA 148 Tax Credits Schedule must be completed.

41-128c (11/20/12)

Form Ia 128 - Iowa Research Activities Credit - 2012 Page 3

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