Tax Credit for Research Activities in Utah (code 12)

UC §59-10-1012

A nonrefundable credit is allowed for certain Utah research expenses. 

The credit is:

1. 5% of your qualified expenses for increasing research activities in Utah above a base amount in the taxable year, 
2. 5% of certain payments made to a qualified organization increasing basic research in Utah above a base amount in the taxable year, and 
3. 6.3% of your qualified research expenses for the taxable year beginning 2009.

Any credit under 1 or 2 above that is more than the tax liability may be carried forward as a credit for the next 14 taxable years. Any credit under 3 above may not be carried forward.

There is no form for this credit. Keep all related documents with your records.

Tax Credit for Machinery and Equipment Used to Conduct Research (code 13)

UC §59-10-1013

A nonrefundable credit is allowed for certain investments in research machinery and equipment.

The credit is 6% of the cost of machinery and equipment:

1. Used primarily to conduct qualified research in Utah for 12 or more consecutive months, or
2. Donated to a qualified organization and used primarily to conduct basic research in Utah for 12 or more consecutive months.

Any credit that is more than the tax liability may be carried forward as a credit for the next 14 taxable years.

The credit is not allowed if machinery and equipment are used for less than 12 consecutive months to primarily conduct qualified research. File an amended return for the year the credit was claimed, removing the credit from the return and paying any increase in tax. See amended return instructions on page 4 of the 2009 Individual Income Tax Filing Instructions.

There is no form for this credit. Keep all related documents with your records.