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Indiana Research Expense Tax Credit IT-20REC - Indiana
| Indiana Research Expense Tax Credit Form. This is a Indiana form and can be used in Corporate Income Department Of Revenue Statewide . |
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State Form 49184 (R7 / 8-12) Department of Revenue Schedule IT-20REC Indiana Research Expense Tax Credit (#822) (Enclose with annual income tax return) Effective July 1, 2005 Tax Year Ending Name(s) of Taxpayer Federal Identification Number Part I -- Qualified Research Activities in Indiana (Explain in detail; attach additional sheets if necessary) A. The place(s) where the services are performed (please be specific): B. The residence or business location of the person(s) performing the services: C. The place where qualified research supplies are consumed: D. Other factors that may be relevant for determining allowable Indiana expenses: Round all entries Part II - Computation of Indiana Credit for Increasing Research Activities Qualified Research Expense Within Indiana Regular Credit for Research Conducted in Indiana 1. Basic research payments paid or incurred to qualified organizations in the taxable period.. 1 00 2. Qualified organization base period amount attributable to Indiana ...................................... 2 00 3. Subtract line 2 from line 1. If less than zero, enter -0- ......................................................... 3 00 4. Wage for qualified services ................................................................................................... 4 00 5. Cost of supplies ..................................................................................................................... 5 00 6. Rental or lease cost of computers .......................................................................................... 6 00 7. Enter the applicable portion of contract research expenses .................................................. 7 00 8. Total qualified research expenses. Add lines 4 through 7 .................................................... 8 00 Skiplines9-17cifusingthealternativeincrementalmethodstartingonline18. % 9. Enter fixed-base percentage attributable to Indiana, but not more than 16%........................ 9 10. Enter average annual Indiana gross receipts for the four preceding tax years ...................... 10 00 11. Multiply line 10 by the percentage on line 9 ......................................................................... 11 00 12. Subtract line 11 from line 8. If zero or less, enter -0- .......................................................... 12 00 13. Multiply line 8 by 50% (.50) ................................................................................................. 13 00 00 14. Enter the smaller of line 12 or line 13 ................................................................................... 14 00 15. Add lines 3 and 14 ................................................................................................................. 15 16. If the amount on line 15 is one million or less, multiply line 15 by 15% (.15)..................... 16 00 17a. If the amount on line 15 is greater than one million, subtract one million from line 15....... 17a 00 17b. Multiply line 17a by 10% (.10) ............................................................................................. 17b 00 17c. Add line 17b and 150,000 ..................................................................................................... 17c 00 Alternative Incremental Credit for Research Conducted in Indiana 18. Enter the wage for qualified services .................................................................................... 19. Enter the cost of supplies....................................................................................................... 20. Enter the rental or lease cost of computers............................................................................ 21. Enter the applicable portion of contract research expenses .................................................. 22. Total qualified research expenses. Add lines 18 through 21 ................................................. 23. Enter the average of qualified research expenses for the three preceding tax years ............. 24. Multiply line 23 by 50% (.50) ............................................................................................... 25. Subtract line 24 from line 22 ................................................................................................. 26. Multiply line 25 by 10% (.10) ............................................................................................... 18 19 20 21 22 23 24 25 26 00 00 00 00 00 00 00 00 00 00 Part III - Indiana Qualified Research Expense Credit 27. Enter amount from line 16 or 17c (or line 26 if using alternative incremental method) ...... 27 Carrypro-ratadistributiveshareofamountonline27plusanyunusedstatecarryoverresearchexpensecredit toFormIT-20,IT-20NP,IT-40,orIT-40PNR. *24100000000* 24100000000 American LegalNet, Inc. www.FormsWorkFlow.com IT-20REC (Code #822) Instructions Purposes of Schedule IT-20REC Use Schedule IT-20REC to calculate your credit for increased reasearch activities conducted in Indiana. Effective Jan. 1, 2008, the credit is 15% of the increase in Indiana qualified research expenses paid or incurred in the taxable year over the taxpayer's base amount if it is $1 million or less. The credit is 10% if the amount is in excess of $1 million. "Indiana qualified research expense" means qualified research expense (as defined in Section 41(b) of the Internal Revenue Code (IRC) as in effect on Jan. 1, 2001) incurred for research conducted in Indiana. "Base amount," effective July 1, 2005, means base amount (as defined in IRC Section 41(c) as in effect Jan. 1, 2001), modified by considering only Indiana qualified research expenses and gross receipts attributable to Indiana in the calculation of the taxpayer's: (1) fixed base percentage; and (2) average annual gross receipts. The annual minimum base amount may not be less than 50% of the Indiana qualified research expense. Who May File An individual, a corporation, a limited liability company, a limited liability partnership, a trust, or a partnership that incurs Indiana research expense and has AGI tax liability, imposed under Indiana Code (IC) 6-3, is entitled to a research expense credit. Schedule IT-20REC is comparable to federal Form 6765, used for claiming credit for increasing research activities, and Form 8820, used for claiming orphan drug credit. Any taxpayer claiming this credit for increasing research activities must attach the completed schedule to their return. A pass-through entity will al
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