Idaho Research Activities Credit
The Idaho Research Activities Credit is designed to encourage businesses to conduct research and development (R&D) activities within the state. This credit is aligned with federal guidelines under Internal Revenue Code (IRC) Section 41, but only includes expenses related to research conducted in Idaho.
Eligibility and Qualifying Expenses
- Qualified research expenses must be incurred for research conducted in Idaho.
- Expenses must meet the definitions of "basic research," "qualified research," and "qualified research expenses" as defined in IRC Section 41.
- Startups may elect to be treated as such for the Idaho research credit, and this election cannot be revoked once made.
Claiming the Credit
Individuals and businesses claiming the credit must complete Form 67, which includes:
- Line 17: Amount of Idaho research credit passed from S corporations, partnerships, trusts, or estates (from Form ID K-1, Part VII, line 40 or Part XI, line 64).
- Line 18: Credit received from unitary group affiliates.
- Line 19: Carryover from previous year’s Form 67, line 30.
- Line 29: Total credit available after applying limitations.
The credit is applied in a specific order before other credits, including:
- Credit for income tax paid to other states
- Part-year resident Food Tax Credit
- Credit for contributions to Idaho educational entities
- Investment tax credit
- Credit for contributions to Idaho youth and rehabilitation facilities
Special Rules
- If you have a short tax year, refer to IRC Sections 41(f)(4) and 41(h).
- The credit is subject to limitations and must be calculated based on the total qualified expenses.
- For startups, if this is one of the first five tax years after 1993 with qualified research expenses, enter 3% on line 5 of Form 67.
Source:
Form 67 — Credit for Idaho Research Activities
Form ID K-1 — Instructions
Disclaimer: Always verify details with the official forms and instructions from the Idaho State Tax Commission or the Federal Department of Revenue. OLT (Online Taxes) provides guidance based on retrieved information but does not guarantee accuracy for all individual circumstances.