Section 35.01.01.723 - CREDIT FOR IDAHO RESEARCH ACTIVITIES: RECORD-KEEPING REQUIREMENTSSection 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: a. Verification that the research was conducted in Idaho;b. Verification that wages included in the computation were for qualified service performed by an employee in Idaho;c. Verification that supplies included in the computation were used for research conducted in Idaho;d. Verification that contract research expenses were for research conducted in Idaho;e. Verification that the research activities meet the definition of qualified research; andf. 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.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.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.Idaho Admin. Code r. 35.01.01.723