State Form 49184 Schedule It-20rec "Indiana Research Expense Tax Credit (#822)" - Indiana

Form State49184 is a Indiana Department of Revenue form also known as the "Schedule It-20rec - Indiana Research Expense Tax Credit (#822)". The latest edition of the form was released in August 1, 2017 and is available for digital filing.

Download an up-to-date Form State49184 in PDF-format down below or look it up on the Indiana Department of Revenue Forms website.

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Schedule IT-20REC
Indiana Department of Revenue
Tax Year
State Form 49184
Indiana Research Expense Tax Credit (#822)
Ending
(R9 / 8-17)
(Enclose with annual income tax return)
Name(s) of Taxpayer
Federal Identification Number
Part I -- Qualified Research Activities in Indiana (Explain in detail; attach additional sheets if necessary)
A.
The Indiana address(es) where the services are performed:
____________________________________________________________________________________________________
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 Regular Credit for Research Conducted in Indiana
Qualified Research Expense
Within Indiana
Skip to line 14 if using the alternative incremental method.
00
1. Wage expense for qualified services ........................................................................................
1
00
2. Cost of supplies ........................................................................................................................
2
00
3. Rental or lease cost of computers ............................................................................................
3
00
4. Enter the applicable portion of contract research expenses.....................................................
4
00
5. Total qualified research expenses. Add lines 1 through 4 ........................................................
5
6. Enter fixed-base percentage attributable to Indiana, but not more than 16% ..........................
6
%
00
7. Enter average annual Indiana gross receipts for the 4 preceding tax years ............................
7
00
8. Multiply line 7 by the percentage on line 6 ...............................................................................
8
00
9. Subtract line 8 from line 5. If zero or less, enter -0-..................................................................
9
00
10. Multiply line 5 by 50% (.50) ......................................................................................................
10
00
11. Enter the smaller of line 9 or line 10 .........................................................................................
11
00
12. If the amount on line 11 is $1 million or less, multiply line 11 by 15% (.15) ..............................
12
00
13a. If the amount on line 11 is greater than $1 million, subtract one million from line 11 ...............
13a
00
13b. Multiply line 13a by 10% (.10) ..................................................................................................
13b
00
13c. Add line 13b and $150,000 .......................................................................................................
13c
Qualified Alternative Incremental Credit for Research Conducted in Indiana
00
14. Enter the wage expense for qualified services ..........................................................................
14
00
15. Enter the cost of supplies ..........................................................................................................
15
00
16. Enter the rental or lease cost of computers...............................................................................
16
00
17. Enter the applicable portion of contract research expenses .....................................................
17
00
18. Total qualified research expenses. Add lines 14 through 17 .....................................................
18
00
19. Enter the average of qualified research expenses for the 3 preceding tax years .....................
19
00
20. Multiply line 19 by 50% (.50) .....................................................................................................
20
00
21. Subtract line 20 from line 18......................................................................................................
21
00
22. Multiply line 21 by 10% (.10) .....................................................................................................
22
23. If no Indiana qualified research expenses were made in any one of the 3 preceding tax years,
00
multiply line 18 by 5% (see instructions) ...................................................................................
23
Part III - Indiana Qualified Research Expense Credit
00
24. Enter amount from line 12 or 13c (or line 22 or 23 if using alternative incremental method) ...
24
Carry pro rata distributive share of amount on line 24 plus any unused state carryover research expense credit
to Form IT-20, IT-20NP, IT-40, or IT-40PNR.
*24100000000*
24100000000
Schedule IT-20REC
Indiana Department of Revenue
Tax Year
State Form 49184
Indiana Research Expense Tax Credit (#822)
Ending
(R9 / 8-17)
(Enclose with annual income tax return)
Name(s) of Taxpayer
Federal Identification Number
Part I -- Qualified Research Activities in Indiana (Explain in detail; attach additional sheets if necessary)
A.
The Indiana address(es) where the services are performed:
____________________________________________________________________________________________________
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 Regular Credit for Research Conducted in Indiana
Qualified Research Expense
Within Indiana
Skip to line 14 if using the alternative incremental method.
00
1. Wage expense for qualified services ........................................................................................
1
00
2. Cost of supplies ........................................................................................................................
2
00
3. Rental or lease cost of computers ............................................................................................
3
00
4. Enter the applicable portion of contract research expenses.....................................................
4
00
5. Total qualified research expenses. Add lines 1 through 4 ........................................................
5
6. Enter fixed-base percentage attributable to Indiana, but not more than 16% ..........................
6
%
00
7. Enter average annual Indiana gross receipts for the 4 preceding tax years ............................
7
00
8. Multiply line 7 by the percentage on line 6 ...............................................................................
8
00
9. Subtract line 8 from line 5. If zero or less, enter -0-..................................................................
9
00
10. Multiply line 5 by 50% (.50) ......................................................................................................
10
00
11. Enter the smaller of line 9 or line 10 .........................................................................................
11
00
12. If the amount on line 11 is $1 million or less, multiply line 11 by 15% (.15) ..............................
12
00
13a. If the amount on line 11 is greater than $1 million, subtract one million from line 11 ...............
13a
00
13b. Multiply line 13a by 10% (.10) ..................................................................................................
13b
00
13c. Add line 13b and $150,000 .......................................................................................................
13c
Qualified Alternative Incremental Credit for Research Conducted in Indiana
00
14. Enter the wage expense for qualified services ..........................................................................
14
00
15. Enter the cost of supplies ..........................................................................................................
15
00
16. Enter the rental or lease cost of computers...............................................................................
16
00
17. Enter the applicable portion of contract research expenses .....................................................
17
00
18. Total qualified research expenses. Add lines 14 through 17 .....................................................
18
00
19. Enter the average of qualified research expenses for the 3 preceding tax years .....................
19
00
20. Multiply line 19 by 50% (.50) .....................................................................................................
20
00
21. Subtract line 20 from line 18......................................................................................................
21
00
22. Multiply line 21 by 10% (.10) .....................................................................................................
22
23. If no Indiana qualified research expenses were made in any one of the 3 preceding tax years,
00
multiply line 18 by 5% (see instructions) ...................................................................................
23
Part III - Indiana Qualified Research Expense Credit
00
24. Enter amount from line 12 or 13c (or line 22 or 23 if using alternative incremental method) ...
24
Carry pro rata distributive share of amount on line 24 plus any unused state carryover research expense credit
to Form IT-20, IT-20NP, IT-40, or IT-40PNR.
*24100000000*
24100000000
IT-20REC (Code #822) Instructions
Purposes of Schedule IT-20REC
Qualified Regular Credit for Research Conducted in Indiana
Use Schedule IT-20REC to calculate your credit for increased reasearch activities
Lines 1 - 13c. Complete these lines with respect to qualified research expense
conducted in Indiana. Effective Jan. 1, 2008, the credit is 15% of the increase in
activities conducted in Indiana. If you elect to use the alternative incremental method
Indiana qualified research expenses paid or incurred in the taxable year over the
for federal tax purposes, skip lines 1 through 13c and continue to line 14.
taxpayer’s base amount if it is $1 million or less. The credit is 10% if the amount is
Line 4. Include 65% of any amount paid or incurred for qualified research performed
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))
on your behalf. Prepaid contract research expenses are considered paid in the year
incurred for research conducted in Indiana. "Base amount," effective July 1, 2005,
the research is actually done. For amounts paid or incurred by the taxpayer to a
means base amount (as defined in IRC Section 41(c)), modified by considering only
qualified research consortium, use 75% instead of 65%. For amounts paid to certain
Indiana qualified research expenses and gross receipts attributable to Indiana in the
small businesses, universities, and federal laboratories, use 100% instead of 65%.
calculation of the taxpayer's:
See IRC Section 41(b)(3)(D) and (E).
(1) fixed base percentage; and
(2) average annual gross receipts.
Line 6. Compute the fixed-based percentage as follows:
Existing firms - The fixed-base percentage is the ratio that the aggregate qualified
The annual minimum base amount may not be less than 50% of the Indiana qualified
research expenses for at least 3 tax years from 1984 to 1988 bears to the aggregate
research expense.
gross receipts for such tax years.
For expenses incurred prior to Jan. 1, 2016, all references to the Internal Revenue
Start-up companies - If there are fewer than 3 tax years between 1984 to 1988
Code are to the Internal Revenue Code in effect on Jan. 1, 2001.
in which the taxpayer had both gross receipts and qualified research expenses, the
percentage is 3%. If the percentage computation involves de minimis amounts of
Who May File
gross receipts and qualified expenses in a tax year, or if short tax years are involved,
An individual, a corporation, a limited liability company, a limited liability
see IRC Sections 41 (c)(3) and 41(f)(4).
partnership, a trust, or a partnership that incurs Indiana research expense and has
Note: The maximum percentage that can be entered on line 6 is 16%.
adjusted gross income (AGI) tax liability, imposed under Indiana Code (IC) 6-3, is
entitled to a research expense credit. Schedule IT-20REC is comparable to federal
Line 7. Enter the average annual gross receipts attributable to Indiana for the 4 tax
Form 6765, used for claiming credit for increasing research activities, and Form
years preceeding the tax year for which the credit is being determined. You may
8820, used for claiming orphan drug credit. Any taxpayer claiming this credit for
need to annualize gross receipts for any short tax year.
increasing research activities must attach the completed schedule to their return.
A pass-through entity will allocate to each partner, shareholder, or member any
Note: For the purposes of lines 6 and 7, gross receipts for any tax year shall be
remaining annual research expense credit multiplied by the percentage of income
reduced by returns and allowances made during the tax year. In the case of a foreign
distribution to which the partner, shareholder, or member is entitled.
corporation, only gross receipts effectively connected with the trade or business
within the U.S. should be taken into account.
Each partner, shareholder, or member entitled to a research expense credit as shown
by an attachment to the Schedule IN K-1 may claim their pro rata share of the credit
Lines 10 and 11. Base period research expenses cannot be less than 50% of current
with any carryover research expense credit on the Indiana individual return. Unlike
year research expenses. This applies to existing businesses and newly organized
the federal credit, beneficiaries of trusts and estates are not afforded this pass-through
businesses. The credit is calculated on the lessor of the difference between current
provision for state tax purposes. Partnerships, S corporations, and fiduciaries must
year and base period expenses or 50% of current year expenses.
enclose IT-20REC with their annual return. Partnerships and S corporations must
also check the appropriate box on their annual return to indicate that the IT-20REC
Alternative Incremental Credit
has been included with the return. A separate schedule showing each owner's pro
As an alternative to the regular credit computation, for years beginning after Dec. 31,
rata share of the above amount must be provided, along with Schedule IN K-1, to
2009, any taxpayer may compute the credit per provisions outlined in IC 6-3.1-4-2(d).
each shareholder, partner, or member of an LLC.
To do so, complete the computation beginning on line 14. The alternative incremental
credit is 10% of the taxpayer’s Indiana qualified research expenses for the taxable year
Carryover of Unused Credits
minus 50% of the taxpayer’s average Indiana qualified expenses for the 3 taxable years
A taxpayer is not entitled to any carryback or refund of any unused credit. Any excess
preceding the taxable year for which the credit is being determined.
credit, or the full credit if there is no current year tax liability (after first applying all
applicable credits under IC 6-3.1-2), may be carried over for up to 10 succeeding
For years beginning prior to January 1, 2010, the alternative incremental credit can
taxable years. A credit earned by a taxpayer in a particular year is applied against
be used only by a taxpayer who is engaged in the aerospace industry and meets the
the taxpayer's tax liability for that year before any credit carryover is applied. All
criteria specified in IC 6-3.1-4-2.5(b).
taxpayers with a remaining credit carryover on Jan. 1, 2006, may carry the excess
credit over not more than 10 taxable years following the year in which they were
Line 23. If no Indiana qualified research expenses were made in any one (1) of the
first entitled to claim the credit. The carryover credit must be reduced by the amount
three (3) preceding tax years, the credit is 5% of the current year Indiana qualified
used as a credit during the immediately preceding tax year.
research expenses. This line only applies to those claiming the credit under the
alternative method per IC 6-3.1-4-2(d), not those in the aerospace industry claiming
General Instructions
the alternative method under IC 6-3.1-4-2.5.
Except as otherwise provided in IC 6-3.1-4, the provisions of IRC § Section 41 and
promulgated regulations are applicable in the interpretation and administration by
Part III - Indiana Qualified Research Expense Credit
the Indiana Department of Revenue regarding this credit. This includes the allocation
Line 24. This is your current-year tentative Indiana Research Expense Tax Credit.
and pass-through of the credit to various taxpayers and the transitional rules for
Carry your pro-rata share of this amount to the appropriate line on your current-year
determination of the base period.
annual income tax return.
Part I - Qualified Research Activities in Indiana
S corporations, partnerships, limited liability companies, and limited liability
Answer the 4 questions on research activities. Your responses to these questions
partnerships must prorate the amount on line 24 among the shareholders, partners,
must be sufficiently detailed to provide the necessary data to determine that qualified
or members, according to the percentage of distributive share of income and report
research expense activity was conducted in Indiana.
their respective pro rata share on each Schedule IN K-1.
Part II - Computation of Indiana Credit for Increasing Research Activities
Enclose completed Schedule IT-20REC with the state income tax return
Refer to federal Form 6765 for detailed line entry instructions. For purposes of this
along with a copy of federal Form 6765 or Form 8820.
section, qualified research expense means qualified research expenses (as defined in
IRC Section 41(b) of the Internal Revenue Code) incurred for research conducted
in Indiana.
*24100000000*
24100000000
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