Idaho Credit for Idaho Research Activities

Credit for Idaho Research Activities
Form 67, Credit for Idaho Research Activities and Instructions 2023
Form 67
Credit for Idaho Research Activities
Names as shown on return

2023
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
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Page 1 of 2

Form 67

2023

(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
1. Enter the amounts for each year
 a. 1984 ............................................................................................................
b. 1985 ............................................................................................................
c. 1986 ............................................................................................................
d. 1987 ............................................................................................................
e. 1988 ............................................................................................................

Column A

Column B

Idaho Qualified
Research Expenses

Idaho Gross
Receipts

1a
1b
1c
1d
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

2. Enter the qualified research expenses for research conducted in Idaho
and the Idaho gross receipts for the applicable years. The applicable
years can be found in the table in the instructions on page 4.
 a.
b.
c.
d.
e.
f.
g.

4th Year .............................................................................................................
5th Year .............................................................................................................
6th Year .............................................................................................................
7th Year .............................................................................................................
8th Year .............................................................................................................
9th Year .............................................................................................................
10th Year .....................................................................................................

Column A

Column B

Qualified Research
Expenses for Research
Conducted in Idaho
(Column A of table)

Idaho Gross
Receipts
(Column B of table)

2a
2b
2c
2d
2e
2f
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 ............................
3. Divide Line 2h by line 2i ......................................................................................................................
4. Percent for applicable year as indicated in the table in the instructions on page 4, Column C ................
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% ....................................................................
Part C — Average Annual Idaho Gross Receipts for the Previous Four Tax Years

2i
3
4
5

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 ...........................
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Form 67 — Instructions
Credit for Idaho Research Activities
General Instructions
Use Form 67 to calculate the credit for Idaho
research activities (Idaho research credit) earned
or allowed. The credit is earned by increasing
research activities in Idaho. Each member of a
unitary group that earns or is allowed the credit
must complete a separate Form 67.
Qualified Research
The Idaho research credit conforms to the Internal
Revenue Code (IRC) Section 41 definitions of
basic research payments, basic research, qualified
research expenses, and qualified research,
except that only the amounts related to research
conducted in Idaho qualify for the Idaho research
credit.
In general, for an activity to qualify for the research
credit, “qualified research” must meet all four of
these criteria:
•	 Expenditures may be treated as expenses
under IRC Section 174
•	 Activities are undertaken for the purpose of
discovering information that’s technological in
nature
•	 The application must be useful in the
development of a new or improved business
component of the taxpayer
•	 Substantially all activities constitute elements
of a process of experimentation for a qualified
purpose
Qualified research involves only technological
activities and doesn’t include research in
economics, business management, behavioral
sciences, arts, or humanities.
Gross receipt calculations include only those gross
receipts attributable to Idaho using the multistate
corporation apportionment rules.
The Idaho credit doesn’t include the calculation
of the alternative simplified credit that’s allowed in
computing the federal credit.
Unitary Sharing
A corporation included as a member of a unitary
group of corporations can share the Idaho research
credit it earns but doesn’t use with other members
of the unitary group. The corporation must claim
the Idaho research credit to the extent allowable
against its Idaho income tax before it can share the
credit.
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Carryover Periods
The credit carryover is limited to 14 tax years.
Special Rules
If you have a short tax year, see IRC Sections 41(f)(4)
and 41(h).

Specific Instructions
Instructions are for lines not fully explained on the form.
Start-up Companies
If you’re a start-up company for the federal research
credit, mark the applicable box. You’ll be treated as a
start-up company for the Idaho research credit.
You can elect to be treated as a start-up company
for the Idaho research credit even though you don’t
qualify as a start-up company for the federal research
credit. To make the election, check the applicable box.
Once you make this election, you can’t change it.
If you’re treated as a start-up company, use the federal
rules under IRC Section 41 for start-up companies to
determine the fixed-base percentage. The calculation
will be different from the federal calculation in the
following ways:
•	 Qualified research expenses will include only
qualified research expenses for research
conducted in Idaho, and
•	 Aggregate gross receipts will include only Idaho
gross receipts
If you aren’t a start-up company for the federal
research credit and you don’t want to make the
election for the Idaho research credit, leave both
boxes blank.
Credit Available Subject to Limitation
Like the federal research credit, corporations that
aren’t S corporations, personal holding companies,
or service organizations can only claim the portion
of the credit that’s computed on the excess of
qualified research payments over the base amount.
All taxpayers other than these qualifying corporations
should begin on line 4.
Line 1. If you’re a qualifying corporation as discussed
above, enter the amount of your payments to a
qualified university or scientific research organization
that are paid under a written contract for basic
research conducted in Idaho.

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Form 67 — Instructions

Line 2. Enter the qualified organization base period
amount as defined in IRC Section 41(e) that relates
to research conducted in Idaho.
Line 4. Enter the amount of wages paid to an
employee for qualified services performed by the
employee in Idaho. Qualified services consist
of engaging in qualified research or the direct
supervision or direct support of research activities
that constitute qualified research.
Line 5. Enter the amount of supplies used in Idaho
to conduct qualified research. Supplies mean any
tangible property other than land or improvements
to land and property subject to the allowance for
depreciation.

2023

(continued)

Line 10. Enter the average annual Idaho gross
receipts for the previous four tax years from page 2,
Part C. The instructions for Part C begin on page 4
of these instructions.
Line 11. Multiply the amount on line 10 by the
percentage on line 9. If the tax year is a short tax year,
prorate the base amount based on the number of
months in the short tax year.
Line 17. Enter the amount of Idaho research credit
that’s being passed to you from S corporations,
partnerships, trusts, or estates, that you have
an interest in. This amount is from Form ID K-1,
Part VII, line 40 or Form ID K-1, Part XI, line 64
(Composite/ABE).

Line 6. Enter the amount you paid or incurred for
the rental or lease of computers used in qualified
research conducted in Idaho. The computer must
be located off your premises, and you can’t be the
operator or primary user of the computer. Reduce
this amount by the amount that you or any member
of a controlled group of corporations or businesses
under common control received or accrued for the
right to use substantially identical property.

Line 18. If you’re a member of a unitary group of
corporations, enter the amount of credit you received
from another member of the unitary group.

Line 7. Enter 65% of the amount you paid or
incurred for qualified research conducted in Idaho
that was performed on your behalf. Prepaid contract
research expenses are considered paid in the year
the research is actually done. Also, include 65% of
that portion of the line 1 basic research payments
that doesn’t exceed the line 2 base amount.

Line 21. If you’re a member of a unitary group of
corporations, enter the amount of credit you earned
that you elect to share with other members of your
unitary group. Before you can share your credit you
must use the credit up to the allowable limitation of
your Idaho income tax.

If the payments were made to a qualified research
consortium that conducted research in Idaho,
use 75% instead of 65%. A qualified research
consortium is a tax-exempt organization described
in IRC Section 501(c)(3) or 501(c)(6) that’s
organized and operated primarily to conduct
scientific research and isn’t a private foundation.
Line 9. Enter the applicable percentage from
page 2, Part A or Part B. If you’re a start-up
company, compute your fixed-based percentage
on page 2, Part B. If you didn’t meet the federal
definition of a start-up company or make the Idaho
election to be treated as a start-up company, use
Part A to compute your fixed-base percentage. The
instructions for Parts A and B begin on page 3 of
these instructions.

Line 19. Enter the carryover from your 2022 Form 67,
line 30.
Line 20. If you’re an S corporation, partnership, trust,
or estate, enter the amount of credit that passed
through to shareholders, partners, or beneficiaries.

Corporations claiming the Idaho research credit 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.
Credit Ordering and Limitation
The Idaho research credit is limited to the Idaho
income tax after allowing all other tax credits that can
be claimed before it. The following credits must be
applied to the tax before the Idaho research credit:
1.	 Credit for income tax paid to other states
2.	 Credit for contributions to Idaho educational entities
3.	 Investment tax credit
4.	 Credit for contributions to Idaho youth and
rehabilitation facilities
5.	 Credit for production equipment using
post-consumer waste
6.	 Promoter-sponsored event credit

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Form 67 — Instructions

Line 23. Enter the amount of your Idaho income
tax. This is the computed tax before subtracting any
credits or adding the permanent building fund tax or
other taxes.
Line 24a. Enter the credit for income tax paid
to other states from Form 39R, Form 39NR, or
Form 66, page 2. This credit is available only to
individuals, trusts or estates.
Line 24b. Enter the credit for contributions to Idaho
educational entities from the appropriate Idaho
income tax return.
Line 24c. Enter the investment tax credit allowed
from Form 49, Part II, line 9.
Line 24d. Enter the credit for contributions to
Idaho youth and rehabilitation facilities from the
appropriate Idaho income tax return.
Line 24e. Enter the credit for production equipment
using post-consumer waste from the appropriate
Idaho income tax return.
Line 24f. Enter the promoter-sponsored event
credit from the appropriate Idaho income tax return.
Line 27. Enter the smaller amount from lines 25 or
26. Enter this amount on Form 44, Part I, line 4, in
the Credit Allowed column.
If you’re an S corporation or partnership and you’ve
elected to be an ABE, this amount also needs to be
distributed to the shareholders or partners on their
Form ID K-1.
Credit Carryover
Line 30. The amount of credit available that
exceeds the total credit allowed on the current year
tax return can be carried forward up to 14 tax years.
Enter this amount on Form 44, Part I, line 4 in the
Carryover column.
Fixed-base Percentage — Parts A and B
If you’re computing the credit for a start-up
company, skip Part A and use Part B to compute
your fixed-base percentage. If you aren’t a start-up
company, use Part A and skip Part B.
Part A
Line 1. For each of the years 1984 through 1988,
enter the total Idaho qualified research expenses
for the year in Column A and the total Idaho
gross receipts in Column B. Use the multistate
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(continued)

apportionment rules to determine the amount of
gross receipts attributable to Idaho. Gross receipts
include receipts minus returns and allowances from
the sale of real, tangible, or intangible property held
for sale to customers in the ordinary course of your
trade or business. Amounts attributable to Idaho
include receipts from property that’s delivered or
shipped to a purchaser in Idaho. Sales to the U.S.
government are Idaho gross receipts if the property
is shipped from an office, store, warehouse, factory,
or other place of storage in Idaho.
Line 2. Divide line 1f by line 1g. Round the percentage
to four digits to the right of the decimal point. For
example, .06666 is rounded to .0667 and is entered as
6.67%. The percentage can’t be more than 16%. Enter
the percentage here and on page 1, line 9.
Part B
Line 1. Enter on this line which year after 1993 this
credit year is. For example, if this is the first tax year
after 1993 that you had qualified research expenses
for research conducted in Idaho, enter 1st. If it’s the
7th tax year after 1993 that you had qualified research
expenses for research conducted in Idaho, enter 7th.
Don’t enter the tax year.
Consider only the tax years that you had qualified
research expenses for research conducted in Idaho.
If this year is one of the 1st through 5th tax years after
1993 that you had qualified research expenses for
research conducted in Idaho, skip lines 2a through 4
and enter 3% on line 5. This percent is also entered on
page 1, line 9.
Lines 2a through 2g. If this year is the 6th or later
tax year after 1993 that you had qualified research
expenses for research conducted in Idaho, use the
table on page 4 to complete Columns A and B for
lines 2a through 2g. Column A identifies which years
you need to enter the qualified research expenses for
research conducted in Idaho. Depending on which
year this is, you may not enter an amount on each line.
For example, if this is the 8th tax year, enter amounts
for the 5th through 7th tax years only, lines 2b through
2d. Enter the Idaho gross receipts in Column B for the
same tax years.
Line 4. If this year is the 6th or later tax year after
1993 that you had qualified research expenses
for research conducted in Idaho, use Column C of
the table on page 4 and enter the percent for the
applicable year. For example, if this is the 8th tax year,
enter 50%.
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Form 67 — Instructions

Line 5. If this year is one of the 1st through 5th tax
years after 1993 that you had qualified research
expenses for research conducted in Idaho, enter
3%. For all other years, multiply line 3 by line 4.
Round the percentage to four digits to the right of
the decimal point. For example, .06666 is rounded
to .0667 and is entered as 6.67%. The percentage
can’t be more than 16%. Enter the percentage here
and on page 1, line 9.
Part C
Lines 1a through 1d. For each of the 1st through
4th tax years before this tax year, enter the Idaho
gross receipts for each applicable year. Use the
multistate apportionment rules to determine the
amount of gross receipts attributable to Idaho.
Don’t include returns and allowances. If one or
more of the four preceding tax years is a short tax
year, the Idaho gross receipts for the short year are
annualized.

(continued)

A taxpayer who hasn’t been transacting business
in Idaho before the credit year is considered to
have average annual gross receipts for the four
preceding tax years equal to zero.
Line 2. Divide the amount on line 1e by 4.
If the taxpayer has been transacting business in
Idaho for at least one but less than four previous tax
years, the taxpayer’s average annual gross receipts
for the four preceding tax years is equal to its annual
average gross receipts for the number of years that
the taxpayer has been transacting business in Idaho.
Divide line 1e by the applicable number of tax years.
Enter the amount here and on page 1, line 10.

Tax years beginning
after 1993 that you have
Idaho qualified research
expenses
First 5 tax years

2023

Calculation
Use 3% for these years – Enter 3% on Form 67, page 2, Part B, line 5.
A
Aggregate Qualified Research
Expenses for Research
Conducted in Idaho for:

B

C

Aggregate
Idaho Gross Receipts

Enter the %
on Form 67,
Page 2, Part B,
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

9th tax year

The 5th through 8th such tax years

10th tax year

The 5th through 9th such tax years

83.33%

Tax years beginning after
the 10th tax year

Any 5 of the 5th through 10th such
tax years

100%

Enter the aggregate Idaho gross
receipts for the same tax years
as indicated in Column A

50%
66.67%

Contact us:

In the Boise area: (208) 334-7660 | Toll free: (800) 972-7660
Hearing impaired (TDD) (800) 377-3529
tax.idaho.gov/contact
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