67: Credit for Idaho Research Activities and Instructions 2025 (2025)
Idaho · Idaho Tax Commission · Used for tax years 2025
Idaho Form 67 calculates the 2025 credit for Idaho research activities using qualified research expenses and, for corporations, basic research payments. It also reports credits received, distributed, or shared, the credit allowed against Idaho income tax, and any carryover to fut
Who files this form
Use Form 67 to calculate the credit for Idaho research activities earned or allowed for tax year 2025. 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 information and forms that apply to your credit:
- Your name as shown on your return and your Social Security number or EIN.
- Amounts for qualified Idaho research wages, supplies, computer rental or lease costs, and contract research expenses.
- For qualifying corporations claiming basic research payments, payment amounts under written contracts with qualified universities or scientific research organizations, plus the qualified organization base period amount.
- Idaho research expense and gross receipt amounts for the years required by Part A or Part B, and Idaho gross receipts for the preceding years used in Part C.
- Form ID K-1 if you received a pass-through credit.
- Your 2024 Form 67, line 30, if you have a credit carryover.
- Your Idaho income tax return and applicable credit forms for the tax and other credits entered on lines 23 and 24.
For unitary sharing, include a schedule. Corporations claiming the credit must provide a calculation showing the credit earned and used by each combined-group member, clearly identifying shared credits and carryovers.
Common mistakes
- Taking both the research deduction and the Idaho credit. To claim the Idaho research credit, add back the federal research and experimentation deduction taken under IRC Section 174 or 174A on your Idaho return. Both benefits are not allowed on the Idaho return.
- Treating the Idaho startup election as reversible. Once made, the election cannot be changed.
- Using the federal alternative simplified credit calculation. Idaho does not include that calculation.
- Entering more than 16% as the fixed-base percentage. The percentage cannot exceed 16%.
- Entering a calendar tax year in Part B, line 1. Enter the qualifying year's position, such as “1st” or “7th,” not the tax year. Count only years with qualified research expenses for research conducted in Idaho.
- Sharing credit before using it. A unitary-group member must first use the credit against its own Idaho income tax up to the allowable limit.
Questions people ask
What research qualifies for the credit?
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 involve 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 startup treatment if I am not a federal startup?
Yes. Check the applicable Idaho startup election box. The election cannot be changed once made. Startup companies use Part B to calculate their fixed-base percentage.
How much credit can I use this year?
The credit is limited to Idaho income tax remaining after the other credits listed on the form are allowed. On line 27, enter the smaller of line 25 or line 26, then report it on Form 44, Part I, line 4, in the Credit Allowed column.
Can unused credit be carried forward?
Yes. Credit exceeding 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.