67: Credit for Idaho Research Activities and Instructions 2024 (2024)
Idaho · Idaho Tax Commission · Used for tax years 2024
Idaho Form 67 calculates the credit for Idaho research activities for 2024. It reports qualified research expenses, basic research payments, credits received or shared, and the amounts allowed for the year or carried forward.
Who files this form
Use Form 67 to calculate the credit for Idaho research activities earned or allowed. The credit is earned by increasing research activities in Idaho. Only amounts related to research conducted in Idaho qualify.
- Each member of a unitary group that earns or is allowed the credit must complete a separate Form 67.
- Corporations other than S corporations, personal holding companies, and service organizations begin on line 1.
- Individuals, S corporations, partnerships, trusts, estates, personal holding companies, and service organizations begin on line 4.
What you'll need
Have the following information and forms available, as applicable:
- Your name as shown on your return and your Social Security number or EIN.
- Amounts for Idaho qualified research wages, supplies, computer rental or lease costs, and contract research expenses.
- Idaho research expense and gross receipt amounts for the years required by Part A or Part B, plus Idaho gross receipts for the preceding four tax years for Part C.
- For qualifying corporations, basic research payments made under written contracts and the qualified organization base period amount.
- Form ID K-1 if you received a pass-through credit. The instructions identify Part VII, line 40, or Part XI, line 64 for Composite/ABE.
- Your prior-year Form 67 for the credit carryover amount.
- Your Idaho income tax return and applicable credit forms to complete the credit limitation calculation.
- Form 44 to report the credit allowed and the carryover.
If you receive credit through unitary sharing, include a schedule. Corporations claiming the credit must provide a calculation of the credit earned and used by each member of the combined group, clearly identifying shared credit and credit carryovers.
Common mistakes
- Making the Idaho start-up election without considering its permanence. Once made, the election cannot be changed.
- Using the wrong fixed-base section. Start-up companies use Part B and skip Part A. Other companies use Part A and skip Part B.
- Entering a calendar year in Part B, line 1. Enter the numbered year, such as “1st” or “7th,” counting only tax years after 1993 with qualified research expenses for research conducted in Idaho.
- Exceeding the fixed-base percentage limit. The percentage cannot be more than 16%.
- Including returns and allowances in Part C gross receipts. The instructions say not to include them.
- Sharing credit before using it against your own tax. A corporation must first use the credit up to its allowable Idaho income tax limitation before sharing it with unitary affiliates.
Questions people ask
What kinds of research qualify?
Qualified research must meet all four criteria listed in the instructions: expenditures may be treated as expenses under IRC Section 174; activities seek technological information; the application is useful in developing a new or improved business component; and substantially all activities are part of a process of experimentation for a qualified purpose. Only research conducted in Idaho qualifies. Research in economics, business management, behavioral sciences, arts, or humanities does not qualify.
Can I elect Idaho start-up treatment if I am not a federal start-up company?
Yes. Check the applicable Idaho election box. Once you make the election, you cannot change it. If you are a start-up company for the federal research credit, check the federal start-up box and you will also be treated as a start-up company for Idaho purposes.
How much credit can I use this year?
The credit is limited to your Idaho income tax remaining after the credits that must be applied first. On line 27, enter the smaller of line 25 or line 26, and report it on Form 44, Part I, line 4, in the Credit Allowed column.
Can unused credit be carried forward?
Yes. Credit available that exceeds the amount allowed on the current-year return can be carried forward for up to 14 tax years. Report the carryover from line 30 on Form 44, Part I, line 4, in the Carryover column.