IDAPA 35.01.01.723 — CREDIT FOR IDAHO RESEARCH ACTIVITIES: RECORD-KEEPING REQUIREMENTS

(RULE 723).
Section 63-3029G, Idaho Code
01.
Information Required. Each taxpayer must retain and make available, on request, records for each
item included in the computation of the credit for Idaho research activities claimed on an Idaho income tax return.
The records must include all of the following:
(4-6-23)
a.
Verification that the research was conducted in Idaho;
(4-6-23)
b.
Verification that wages included in the computation were for qualified service performed by an
employee in Idaho;
(4-6-23)
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.01
Idaho State Tax Commission
Income Tax Administrative Rules
Section 730
Page 105
c.
Verification that supplies included in the computation were used for research conducted in Idaho;
(4-6-23)
d.
Verification that contract research expenses were for research conducted in Idaho;
(4-6-23)
e.
Verification that the research activities meet the definition of qualified research; and
(4-6-23)
f.
Verification that the amounts included in the Idaho computation are includable in the computation
of the federal credit allowed by Section 41, Internal Revenue Code.
(4-6-23)
02.
Failure to Maintain Adequate Records. Failure to maintain any of the records required by this
rule may result in the disallowance of the credit claimed.
(4-6-23)
03.
Unitary Taxpayers. Corporations claiming the credit for Idaho research activities must provide a
calculation of the credit earned and used by each member of the combined group. The schedule must clearly identify
shared credit and the computation of any credit carryovers.
(4-6-23)