Form 67 2022 Credit for Idaho Research Activities Names as shown on return Social Security number or EIN Start-up Companies: If you’re treated as a start-up company for purposes of the federal research credit, check the box. If you elect to be treated as a start-up company for purposes of the Idaho research credit, check the box. You can’t revoke the election once you make it. Credit Available Subject to Limitation • 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. Basic Research Payments. Only corporations complete lines 1 through 3. 1. Basic research payments paid or incurred during the tax year to qualified organizations ......... 1 2. Qualified organization base period amount ................................................................................ 2 3. Subtract line 2 from line 1. If less than zero, enter zero ............................................................. 3 Qualified Research Expenses Paid or Incurred for Research Conducted in Idaho 4. Wages for qualified services performed in Idaho ........................................................................ 4 5. Cost of supplies used in Idaho .................................................................................................... 5 6. Rental or lease costs of computers used in Idaho ...................................................................... 6 7. Enter the applicable percentage of contract research expenses ................................................ 7 8. Total qualified research expenses for research conducted in Idaho. Add lines 4 through 7 ....... 8 9. Enter fixed-base percentage, but not more than 16%, from page 2, Part A or B ........................ 9 % 10. Enter average annual Idaho gross receipts from page 2, Part C ................................................ 10 11. Base amount. Multiply line 10 by the percentage on line 9 ........................................................ 11 12. Subtract line 11 from line 8. If zero or less, enter zero ................................................................ 12 13. Multiply line 8 by 50% ................................................................................................................. 13 14. Enter the smaller amount from line 12 or line 13 ........................................................................ 14 15. Add lines 3 and 14 ...................................................................................................................... 15 16. Credit earned. Multiply line 15 by 5% ......................................................................................... 16 17. Pass-through share of credit from an S corporation, partnership, trust, or estate ...................... 17 18. Credit received through unitary sharing. Include a schedule ...................................................... 18 19. Carryover of credit for Idaho research activities from prior years ............................................... 19 20. Credit distributed to shareholders, partners, or beneficiaries ..................................................... 20 21. Credit shared with unitary affiliates ............................................................................................. 21 22. Total credit available subject to limitations. Add lines 16 through 19, then subtract lines 20 and 21 ..................................................................................................... 22 23. Enter the Idaho income tax from your tax return ........................................................................ 23 24. a. Credit for income tax paid to other states .............................................. 24a b. Credit for contributions to Idaho educational entities ............................. 24b c. Investment tax credit .............................................................................. 24c d. Credit for contributions to Idaho youth and rehabilitation facilities ......... 24d e. Credit for production equipment using post-consumer waste ................ 24e f. Promoter-sponsored event credit ........................................................... 24f g. Add lines 24a through 24f .................................................................................................... 24g 25. Net income tax after allowance of other credits. Subtract line 24g from line 23 ......................... 25 26. Total credit available subject to limitations. Enter the amount from line 22 ................................ 26 27. Credit for Idaho research activities allowed. Enter the smaller amount from line 25 or line 26 here and on Form 44, Part I, line 4 ................ 27 Credit Carryover 28. Total credit available subject to limitations. Enter the amount from line 22 ................................ 28 29. Credit allowed. Enter the amount from line 27...................................................... ............................. 29 30. Credit carryover to future years. Subtract line 29 from line 28. Enter the amount here and on Form 44, Part I, line 4 ...................................................................................................... 30 EFO00037 07-25-2022 Page 1 of 2 |
Form 67 2022 (continued) Use Part A or Part B to compute the fixed-base percentage. If the company meets the federal definition of a start-up company or has elected to be treated as a start-up company, skip Part A and use Part B. Enter the fixed-base percentage on page 1, line 9. Use Part C to compute the average annual gross receipts attributable to sources in Idaho. Enter this amount on page 1, line 10. For Parts A, B and C, determine Idaho gross receipts using the multistate apportionment rules. Part A — Fixed-base Percentage Column A Column B Idaho Qualified Idaho Gross 1. Enter the amounts for each year Research Expenses Receipts a. 1984 ............................................................................................................ 1a b. 1985 ............................................................................................................ 1b c. 1986 ............................................................................................................ 1c d. 1987 ............................................................................................................ 1d e. 1988 ............................................................................................................ 1e f. Total Idaho qualified research expenses. Add lines 1a through 1e in Column A ................................................................................................. 1f g. Total Idaho gross receipts. Add lines 1a through 1e in Column B ................................................ 1g 2. Fixed-base Percentage. Divide line 1f by line 1g. Enter the amount here and on page 1, line 9. Don’t enter more than 16% .................................................................................... 2 % Part B — Fixed-base Percentage for Start-up Companies For the first five tax years beginning after 1993 that you have qualified research expenses for research conducted in Idaho, enter on line 1 which year after 1993 this tax year is (for example 3rd tax year) and on line 5 enter 3%. You don’t need to complete any other lines in Schedule B. If this is the 6th year or later beginning after 1993 that you have qualified research expenses for research conducted in Idaho, use the table in the instructions on page 3 to determine the years that you need to enter the Idaho qualified research expenses and Idaho gross receipts for. For example, if this is the 6th tax year beginning after 1993, you’ll enter the Idaho qualified research expenses and Idaho gross receipts for the 4th and 5th tax years. 1. Identify the year beginning after 1993 (1st, 2nd, 3rd...). See instructions .......................................... 1 Column A Column B 2. Enter the qualified research expenses for research conducted in Idaho Qualified Research and the Idaho gross receipts for the applicable years. The applicable Expenses for Research Idaho Gross years can be found in the table in the instructions on page 4. Conducted in Idaho Receipts (Column A of table) (Column B of table) a. 4th Year ............................................................................................................. 2a b. 5th Year ............................................................................................................. 2b c. 6th Year ............................................................................................................. 2c d. 7th Year ............................................................................................................. 2d e. 8th Year ............................................................................................................. 2e f. 9th Year ............................................................................................................. 2f g. 10th Year ..................................................................................................... 2g h. Total qualified research expenses for research conducted in Idaho for applicable years. Add the amounts in Column A ................................... 2h i. Total Idaho gross receipts for the same tax years. Add the amounts in Column B ............................ 2i 3. Divide Line 2h by line 2i ...................................................................................................................... 3 4. Percent for applicable year as indicated in the table in the instructions on page 4, Column C ................ 4 5. Fixed-based percentage for start-up companies. Multiply line 3 by line 4. Enter the amount here and on page 1, line 9. Don’t enter more than 16% .................................................................... 5 Part C — Average Annual Idaho Gross Receipts for the Previous Four Tax Years 1. Enter the Idaho gross receipts for each of the years indicated. a. 1st preceding tax year ................................................................................. 1a b. 2nd preceding tax year ................................................................................ 1b c. 3rd preceding tax year ................................................................................. 1c d. 4th preceding tax year ................................................................................. 1d e. Total annual Idaho gross receipts for the previous four tax years. Add lines 1a through 1d ........ 1e 2. Total average annual Idaho gross receipts for the previous four tax years. Divide the amount on line 1e by 4. Enter the amount here and on page 1, line 10 ........................... 2 EFO00037 07-25-2022 Page 2 of 2 |
Form 67 — Instructions Credit for Idaho Research Activities 2022 General Instructions Carryover Periods Use Form 67 to calculate the credit for Idaho The credit carryover is limited to 14 tax years. research activities (Idaho research credit) earned or allowed. The credit is earned by increasing Special Rules If you have a short tax year, see IRC Sections 41(f)(4) research activities in Idaho. Each member of a and 41(h). unitary group that earns or is allowed the credit must complete a separate Form 67. Specific Instructions Qualified Research Instructions are for lines not fully explained on the form. The Idaho research credit conforms to the Internal Revenue Code (IRC) Section 41 definitions of Start-up Companies basic research payments, basic research, qualified If you’re a start-up company for the federal research research expenses, and qualified research, credit, mark the applicable box. You’ll be treated as a except that only the amounts related to research start-up company for the Idaho research credit. conducted in Idaho qualify for the Idaho research You can elect to be treated as a start-up company credit. for the Idaho research credit even though you don’t In general, for an activity to qualify for the research qualify as a start-up company for the federal research credit, “qualified research” must meet all four of credit. To make the election, check the applicable box. these criteria: Once you make this election, you can’t change it. • Expenditures may be treated as expenses If you’re treated as a start-up company, use the federal under IRC Section 174 rules under IRC Section 41 for start-up companies to • Activities are undertaken for the purpose of determine the fixed-base percentage. The calculation discovering information that’s technological in will be different from the federal calculation in the nature following ways: • The application must be useful in the • Qualified research expenses will include only development of a new or improved business qualified research expenses for research component of the taxpayer conducted in Idaho, and • Substantially all activities constitute elements • Aggregate gross receipts will include only Idaho of a process of experimentation for a qualified gross receipts purpose If you aren’t a start-up company for the federal research credit and you don’t want to make the Qualified research involves only technological election for the Idaho research credit, leave both activities and doesn’t include research in boxes blank. economics, business management, behavioral sciences, arts, or humanities. Credit Available Subject to Limitation Gross receipt calculations include only those gross Like the federal research credit, corporations that receipts attributable to Idaho using the multistate aren’t S corporations, personal holding companies, corporation apportionment rules. or service organizations can only claim the portion of the credit that’s computed on the excess of The Idaho credit doesn’t include the calculation qualified research payments over the base amount. of the alternative simplified credit that’s allowed in All taxpayers other than these qualifying corporations computing the federal credit. should begin on line 4. Unitary Sharing Line 1. If you’re a qualifying corporation as discussed A corporation included as a member of a unitary above, enter the amount of your payments to a group of corporations can share the Idaho research qualified university or scientific research organization credit it earns but doesn’t use with other members that are paid under a written contract for basic of the unitary group. The corporation must claim research conducted in Idaho. the Idaho research credit to the extent allowable against its Idaho income tax before it can share the credit. EIN00084 07-25-2022 Page 1 of 4 |
Form 67 — Instructions 2022 (continued) Line 2. Enter the qualified organization base period Line 10. Enter the average annual Idaho gross amount as defined in IRC Section 41(e) that relates receipts for the previous four tax years from page 2, to research conducted in Idaho. Part C. The instructions for Part C begin on page 4 of these instructions. Line 4. Enter the amount of wages paid to an employee for qualified services performed by the Line 11. Multiply the amount on line 10 by the employee in Idaho. Qualified services consist percentage on line 9. If the tax year is a short tax year, of engaging in qualified research or the direct prorate the base amount based on the number of supervision or direct support of research activities months in the short tax year. that constitute qualified research. Line 17. Enter the amount of Idaho research credit Line 5. Enter the amount of supplies used in Idaho that’s being passed to you from S corporations, to conduct qualified research. Supplies mean any partnerships, trusts, or estates, that you have an tangible property other than land or improvements interest in. This amount is from Form ID K-1, Part VII, to land and property subject to the allowance for line 45. depreciation. Line 18. If you’re a member of a unitary group of Line 6. Enter the amount you paid or incurred for corporations, enter the amount of credit you received the rental or lease of computers used in qualified from another member of the unitary group. research conducted in Idaho. The computer must be located off your premises, and you can’t be the Line 19. Enter the carryover from your 2021 Form 67, operator or primary user of the computer. Reduce line 30. this amount by the amount that you or any member If you’re an S corporation, partnership, trust, Line 20. of a controlled group of corporations or businesses or estate, enter the amount of credit that passed under common control received or accrued for the through to shareholders, partners, or beneficiaries. right to use substantially identical property. Line 21. If you’re a member of a unitary group of Line 7. Enter 65% of the amount you paid or corporations, enter the amount of credit you earned incurred for qualified research conducted in Idaho that you elect to share with other members of your that was performed on your behalf. Prepaid contract unitary group. Before you can share your credit you research expenses are considered paid in the year must use the credit up to the allowable limitation of the research is actually done. Also, include 65% of your Idaho income tax. that portion of the line 1 basic research payments that doesn’t exceed the line 2 base amount. Corporations claiming the Idaho research credit must provide a calculation of the credit earned and used by If the payments were made to a qualified research each member of the combined group. The schedule consortium that conducted research in Idaho, must clearly identify shared credit and the computation use 75% instead of 65%. A qualified research of any credit carryovers. consortium is a tax-exempt organization described in IRC Section 501(c)(3) or 501(c)(6) that’s Credit Ordering and Limitation organized and operated primarily to conduct The Idaho research credit is limited to the Idaho scientific research and isn’t a private foundation. income tax after allowing all other tax credits that can Line 9. Enter the applicable percentage from be claimed before it. The following credits must be page 2, Part A or Part B. If you’re a start-up applied to the tax before the Idaho research credit: company, compute your fixed-based percentage 1. Credit for income tax paid to other states on page 2, Part B. If you didn’t meet the federal 2. Credit for contributions to Idaho educational entities definition of a start-up company or make the Idaho 3. Investment tax credit election to be treated as a start-up company, use Part A to compute your fixed-base percentage. The 4. Credit for contributions to Idaho youth and instructions for Parts A and B begin on page 3 of rehabilitation facilities these instructions. 5. Credit for production equipment using post-consumer waste 6. Promoter-sponsored event credit EIN00084 07-25-2022 Page 2 of 4 |
Form 67 — Instructions 2022 (continued) Line 23. Enter the amount of your Idaho income trade or business. Amounts attributable to Idaho tax. This is the computed tax before subtracting any include receipts from property that’s delivered or credits or adding the permanent building fund tax or shipped to a purchaser in Idaho. Sales to the U.S. other taxes. government are Idaho gross receipts if the property is shipped from an office, store, warehouse, factory, Line 24a. Enter the credit for income tax paid or other place of storage in Idaho. to other states from Form 39R, Form 39NR, or Form 66, page 2. This credit is available only to Line 2. Divide line 1f by line 1g. Round the percentage individuals, trusts or estates. to four digits to the right of the decimal point. For example, .06666 is rounded to .0667 and is entered as Line 24b. Enter the credit for contributions to Idaho 6.67%. The percentage can’t be more than 16%. Enter educational entities from the appropriate Idaho the percentage here and on page 1, line 9. income tax return. Part B Line 24c. Enter the investment tax credit allowed from Form 49, Part II, line 8. Line 1. Enter on this line which year after 1993 this credit year is. For example, if this is the first tax year Line 24d. Enter the credit for contributions to after 1993 that you had qualified research expenses Idaho youth and rehabilitation facilities from the for research conducted in Idaho, enter 1st. If it’s the appropriate Idaho income tax return. 7th tax year after 1993 that you had qualified research expenses for research conducted in Idaho, enter 7th. Line 24e. Enter the credit for production equipment Don’t enter the tax year. using post-consumer waste from the appropriate Consider only the tax years that you had qualified Idaho income tax return. research expenses for research conducted in Idaho. Line 24f. Enter the promoter-sponsored event If this year is one of the 1st through 5th tax years after credit from the appropriate Idaho income tax return. 1993 that you had qualified research expenses for research conducted in Idaho, skip lines 2a through 4 Line 27. Enter the smaller amount from lines 25 or and enter 3% on line 5. This percent is also entered on 26. Enter this amount on Form 44, Part I, line 4, in page 1, line 9. the Credit Allowed column. Lines 2a through 2g. If this year is the 6th or later Credit Carryover tax year after 1993 that you had qualified research Line 30. The amount of credit available that expenses for research conducted in Idaho, use the exceeds the total credit allowed on the current year table on page 4 to complete Columns A and B for tax return can be carried forward up to 14 tax years. lines 2a through 2g. Column A identifies which years Enter this amount on Form 44, Part I, line 4 in the you need to enter the qualified research expenses for Carryover column. research conducted in Idaho. Depending on which year this is, you may not enter an amount on each line. Fixed-base Percentage — Parts A and B For example, if this is the 8th tax year, enter amounts If you’re computing the credit for a start-up for the 5th through 7th tax years only, lines 2b through company, skip Part A and use Part B to compute 2d. Enter the Idaho gross receipts in Column B for the your fixed-base percentage. If you aren’t a start-up same tax years. company, use Part A and skip Part B. Line 4. If this year is the 6th or later tax year after Part A 1993 that you had qualified research expenses Line 1. For each of the years 1984 through 1988, for research conducted in Idaho, use Column C of enter the total Idaho qualified research expenses the table on page 4 and enter the percent for the for the year in Column A and the total Idaho applicable year. For example, if this is the 8th tax year, gross receipts in Column B. Use the multistate enter 50%. apportionment rules to determine the amount of gross receipts attributable to Idaho. Gross receipts Line 5. If this year is one of the 1st through 5th tax include receipts minus returns and allowances from years after 1993 that you had qualified research the sale of real, tangible, or intangible property held expenses for research conducted in Idaho, enter for sale to customers in the ordinary course of your 3%. For all other years, multiply line 3 by line 4. EIN00084 07-25-2022 Page 3 of 4 |
Form 67 — Instructions 2022 (continued) Round the percentage to four digits to the right of A taxpayer who hasn’t been transacting business the decimal point. For example, .06666 is rounded in Idaho before the credit year is considered to to .0667 and is entered as 6.67%. The percentage have average annual gross receipts for the four can’t be more than 16%. Enter the percentage here preceding tax years equal to zero. and on page 1, line 9. Line 2. Divide the amount on line 1e by 4. Part C If the taxpayer has been transacting business in Lines 1a through 1d. For each of the 1st through Idaho for at least one but less than four previous tax 4th tax years before this tax year, enter the Idaho years, the taxpayer’s average annual gross receipts gross receipts for each applicable year. Use the for the four preceding tax years is equal to its annual multistate apportionment rules to determine the average gross receipts for the number of years that amount of gross receipts attributable to Idaho. the taxpayer has been transacting business in Idaho. Don’t include returns and allowances. If one or Divide line 1e by the applicable number of tax years. more of the four preceding tax years is a short tax Enter the amount here and on page 1, line 10. year, the Idaho gross receipts for the short year are annualized. Tax years beginning after 1993 that you have Calculation Idaho qualified research expenses First 5 tax years Use 3% for these years – Enter 3% on Form 67, page 2, Part B, line 5. A B C Enter the % Aggregate Qualified Research Aggregate on Form 67, Expenses for Research Idaho Gross Receipts Page 2, Part B, Conducted in Idaho for: line 4 6th tax year The 4th and 5th such tax years 16.67% 7th tax year The 5th and 6th such tax years 33.33% 8th tax year The 5th, 6th and 7th such tax years Enter the aggregate Idaho gross 50% receipts for the same tax years 9th tax year The 5th through 8th such tax years as indicated in Column A 66.67% 10th tax year The 5th through 9th such tax years 83.33% Tax years beginning after Any 5 of the 5th through 10th such 100% the 10th tax year tax years Contact us: In the Boise area: (208) 334-7660 |Toll free: (800) 972-7660 Hearing impaired (TDD) (800) 377-3529 tax.idaho.gov/contact EIN00084 07-25-2022 Page 4 of 4 |