IDAPA 35.01.01.720 — CREDIT FOR IDAHO RESEARCH ACTIVITIES: IN GENERAL (RULE 720)

Section 63-3029G, Idaho Code
01.
Definitions. The Idaho credit is computed using the same definitions of qualified research
expenses, qualified research, basic research payments, and basic research as are found in Section 41, Internal
Revenue Code, except only the amounts related to research conducted in Idaho qualify for the Idaho credit. If an
expense does not qualify for the federal credit under Section 41, Internal Revenue Code, it will not qualify for
purposes of the Idaho credit.
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IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.01
Idaho State Tax Commission
Income Tax Administrative Rules
Section 721
Page 104
02.
Limitations. The credit for Idaho research activities allowable in any taxable year is limited as
follows:
(4-6-23)
a.
Tax Liability. The total amount of any credit for Idaho research activities claimed during a taxable
year may not exceed one hundred percent (100%) of the tax, after allowing all other income tax credits that may be
claimed before the credit for Idaho research activities, regardless of whether the credit for Idaho research activities
results from a carryover earned in prior years, the current year, or both. See Rule 799 of these rules for the priority
order for nonrefundable credits.
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b.
Unitary Taxpayers. Limitations apply to each taxpayer according to its own tax liability. Each
corporation in a unitary group is a separate taxpayer.
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03.
Short Taxable Year Calculations. Short taxable year calculations provided in Section 41, Internal
Revenue Code, and related regulations are used to compute the Idaho credit if the taxpayer must use short taxable
year calculations for purposes of computing the federal credit.
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