Research Activities Credits

Credit for Research Activities in Utah (code 12)

UC §59-10-1012

A non-refundable tax credit is allowed for certain Utah research expenses as defined and calculated under Section 41 of the Internal Revenue Code.

The credit is:

  1. 5% of your qualified research expenses in Utah for the current tax year that exceed a base amount (defined under UC §59-10-1012(3)) ,
  2. 5% of payments made to a qualified organization for basic research in Utah for the current taxable year that exceed a base amount (defined under UC §59-10-1012(3)), and
  3. 7.5% of your qualified research expenses for the current taxable year.

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.

Enter the credit on Utah TC-40A, Part 4, using code 12.

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

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

UC §59-10-1013

The credit expired for taxable years beginning after 2010.

If you claimed a credit on your return for machinery and/or equipment used to conduct research for a year after 1998 and prior to 2011, and the credit was more than the tax liability for the year, you may carry over the excess credit to the next 14 years and use it to offset tax until used up. If you are using any remaining credit in this year, enter that carryover amount on TC-40A, Part 4, using code 13.