Idaho Credit for Idaho Research Activities

Program Overview

Idaho's research credit follows the federal Section 41 framework closely, applying the state rate to the increase in qualified research expenses conducted in Idaho over a base amount. The credit may offset a portion of Idaho income tax liability, subject to applicable limitations, and unused amounts may be carried forward for more than a decade. Because the calculation is based on federal research credit definitions, documentation prepared for a federal research credit claim may also support the Idaho credit, subject to Idaho-specific requirements.

Eligibility

• Individuals conducting qualified research in Idaho may qualify.
• Corporations conducting qualified research in Idaho may qualify.
• Pass-through entities conducting qualified research in Idaho may qualify, subject to applicable tax treatment.
• Research activities must meet the applicable requirements under IRC Section 41.
• Qualified research expenses must be attributable to research conducted in Idaho.

Benefits

• Provides a non-refundable credit against Idaho income tax liability.
• The credit is subject to an annual limitation based on a percentage of total Idaho tax liability.
• Unused credit amounts may be carried forward for the applicable carryforward period, subject to Idaho requirements.