Credit for Idaho Research Activities

Article ID: 33985  

Question
Credit for Idaho Research Activities

Answer

Qualified Research
The Idaho research credit conforms to the Internal Revenue Code (IRC) definitions of basic research payments, basic research, qualified research expenses, and qualified research, except that only the amounts related to research conducted in Idaho qualify for the Idaho research credit.

Gross receipt calculations include only those gross receipts that are attributable to Idaho using the multistate corporation apportionment rules. These are referred to in the instructions as Idaho gross receipts. The Idaho credit does not include the calculation of the alternative incremental credit, which is allowed in computing the federal credit.

Unitary Sharing
A corporation included as a member of a unitary group of corporations may elect to share the Idaho research credit it earns but does not use with other members of the unitary group.The corporation must claim the Idaho research credit to the extent allowable against its Idaho income tax before it can share the credit.

Carry-Over Periods
The credit carryover is limited to 14 tax years.

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


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