Fillable Form 67 - Credit For Idaho Research Activities

Instructions for Idaho Form 67

EFO00037p3

08-25-11

qualified research payments over the base amount. All taxpayers

GEnERAl InSTRuCTIOnS

other than these qualifying corporations should begin on line 4.

line 1. If you are a qualifying corporation as discussed above, enter

Form 67 is used to calculate the credit for Idaho research activities

(Idaho research credit) earned or allowed. The credit is earned by

the amount of your payments to a qualified university or scientific

increasing research activities in Idaho. Each member of a unitary

research organization that are paid under a written contract for basic

group that earns or is allowed the credit must complete a separate

research conducted in Idaho.

Form 67.

line 2. Enter the qualified organization base period amount as

Qualified Research

defined in IRC Section 41(e) that relates to research conducted in

The Idaho research credit conforms to the Internal Revenue Code

Idaho.

(IRC) definitions of basic research payments, basic research, qualified

research expenses, and qualified research, except that only the

line 4. Enter the amount of wages paid to an employee for qualified

amounts related to research conducted in Idaho qualify for the Idaho

services performed by the employee in Idaho. Qualified services

research credit.

consist of engaging in qualified research or the direct supervision or

direct support of research activities that constitute qualified research.

Gross receipt calculations include only those gross receipts that are

attributable to Idaho using the multistate corporation apportionment

line 5. Enter the amount of supplies used in Idaho in the conduct of

rules. These are referred to in the instructions as Idaho gross

qualified research. Supplies mean any tangible property other than

receipts.

land or improvements to land, and property of a character subject to

the allowance for depreciation.

The Idaho credit doesn't include the calculation of the alternative

simplified credit, which is allowed in computing the federal credit.

line 6. Enter the amount you paid or incurred for the rental or lease

of computers used in qualified research conducted in Idaho. The

unitary Sharing

computer must be located off your premises and you can't be the

A corporation included as a member of a unitary group of corporations

operator or primary user of the computer. Reduce this amount by the

may elect to share the Idaho research credit it earns but does not use

amount that you or any member of a controlled group of corporations

with other members of the unitary group. The corporation must claim

or businesses under common control received or accrued for the right

the Idaho research credit to the extent allowable against its Idaho

to use substantially identical property.

income tax before it can share the credit.

line 7. Enter 65% of the amount you paid or incurred for qualified

Carryover periods

research conducted in Idaho that was performed on your behalf.

The credit carryover is limited to 14 tax years.

Prepaid contract research expenses are considered paid in the year

the research is actually done. Also, include 65% of that portion of the

Special Rules

line 1 basic research payments that doesn't exceed the line 2 base

If you have a short tax year, see IRC Sections 41(f)(4) and 41(h).

amount.

SpECIFIC InSTRuCTIOnS

If the payments were made to a qualified research consortium that

conducted research in Idaho, use 75% instead of 65%. A qualified

Instructions are for lines not fully explained on the form.

research consortium is a tax-exempt organization described in IRC

Section 501(c)(3) or 501(c)(6) that is organized and operated primarily

START-up COMpAnIES

to conduct scientific research and isn't a private foundation.

If you are a start-up company for the federal research credit, mark

the applicable box. You will be treated as a start-up company for the

line 9. Enter the applicable percentage from page 2, Part A or

Idaho research credit.

Part B. If you are a start-up company, compute your fixed-based

percentage on page 2, Part B. If you didn’t meet the federal definition

You may elect to be treated as a start-up company for the Idaho

of a start-up company or make the Idaho election to be treated as a

research credit even though you don't qualify as a start-up company

start-up company, use Part A to compute your fixed-base percentage.

for purposes of the federal research credit. To make the election,

The instructions for Parts A and B begin on page 2 of these

check the applicable box. Once you make this election, you can't

instructions.

change it.

line 10. Enter the average annual Idaho gross receipts for the

If you are treated as a start-up company, you must use the federal

previous four tax years from page 2, Part C. The instructions for Part

rules under IRC Section 41 for start-up companies to determine the

C begin on page 2 of these instructions.

fixed-base percentage. However, the calculation will be different from

the federal calculation in the following ways:

line 11. Multiply the amount on line 10 by the percentage on line 9.

If the tax year is a short tax year, prorate the base amount based on

the number of months in the short tax year.

●

Qualified research expenses will include only qualified research

expenses for research conducted in Idaho; and

line 17. Enter the amount of Idaho research credit that is being

●

Aggregate gross receipts will include only Idaho gross receipts.

passed to you from partnerships, S corporations, estates, or trusts in

which you have an interest. This amount is from Form ID K-1, Part D,

If you aren't a start-up company for the federal research credit and

line 4.

you don't want to make the election for the Idaho research credit,

leave both boxes blank.

line 18. If you are a member of a unitary group of corporations,

enter the amount of credit you received from another member of the

CREDIT AVAIlABlE SuBJECT TO lIMITATIOn

unitary group.

Like the federal research credit, corporations that aren't S corp-

orations, personal holding companies, or service organizations can

line 19. Enter the carryover from your 2010 Form 67, line 30.

only claim the portion of the credit that is computed on the excess of

Form 67 - Credit For Idaho Research Activities - 2011 Page 3

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