Idaho's R&D credit carries forward 14 years.

Rate	5% of increase, plus 5% of basic research
Refundable	No
Carryforward	14 years
Statute	Idaho Code 63-3029G
Form	Form 67

The credit is the federal research credit, narrowed to Idaho and built on the increase in your research spending. The mechanics:

• Rate. 5 percent of the excess of qualified research expenses for research conducted in Idaho over the base amount, plus 5 percent of basic research payments under IRC Section 41(e) for basic research conducted in Idaho.
• It is incremental. The credit counts only research spending above a base amount computed under the federal Section 41 method, so it rewards growth in research over your historical level.
• Idaho-only. All research activities, qualified research expenses, and gross receipts used in the calculation must be sourced to Idaho. Research done elsewhere does not count, even where the federal definition would include it.
• Same expense definition as federal. Qualified research expenses use the Section 41 definitions. If an expense does not qualify for the federal credit, it does not qualify for the Idaho credit either.
• Nonrefundable, with a long carryforward. The credit offsets Idaho income tax. It is not refundable, but unused credit carries forward for up to 14 taxable years, among the longest carryforwards of any state credit.

The credit is claimed on Idaho Form 67, Credit for Idaho Research Activities, filed with the Idaho income tax return, under Idaho Code section 63-3029G.

R&D Binder produces federal Section 41 documentation from your GitHub commit history. The binder is what supports your federal Form 6765 and, starting tax year 2026, the mandatory Form 6765 Section G appendix. Because Idaho uses the same Section 41 expense definition, that same evidence supports the Idaho credit for the portion of the work conducted in Idaho.

The Idaho state credit workpaper is a $995 add-on to the standard binder engagement. It produces:

• An Idaho-attributable QRE breakdown: wages, supplies, and contractor expenses tied to research conducted in Idaho, using the same business-component partition as the federal binder.
• The base amount and the excess over base, with the credit computed at 5 percent, plus any basic research payments.
• A usage note: the 14-year carryforward, so your CPA can plan how the credit is absorbed over time.
• Filing notes for your CPA: that the credit goes on Idaho Form 67 and which return it attaches to.

We do not file Form 67 or sign the Idaho return. That stays with your CPA, the same way federal Form 6765 does. R&D Binder produces the workpaper; your CPA files.

If you operate in more than one state, additional state workpapers are $995 each. Most states with an R&D credit track the federal QRE definition closely, so the marginal cost per state is low once the federal binder is complete.

A worked example. A Boise SaaS company with 12 engineers, $2.4M in qualifying wages (the federal QRE pool), and 9 engineers conducting their research in Idaho.

• Federal Section 41 credit. Computed on the full $2.4M federal QRE pool through Form 6765, claimed by the CPA. R&D Binder produces the binder, QRE workpaper, and Form 6765 Section G appendix.
• Idaho credit. Computed on the Idaho-conducted portion. Allocate roughly $1.8M to Idaho ($2.4M times the 9/12 engineer ratio, refined by each employee's actual research location). Say the base amount is $900,000, so the excess is $900,000. At 5 percent, the credit is about $45,000.
• Nonrefundable, with 14 years to use it. The credit offsets Idaho income tax. A profitable company uses it against that tax; a pre-profit company carries the unused amount forward up to 14 years, so it is rarely lost.
• Total engagement cost. SaaS Standard tier ($4,995, 6 to 25 FTE) plus the Idaho state workpaper add-on ($995). Total $5,990.

The base amount and the engineer allocation are specific to each company; the numbers above are illustrative. The CPA files both returns. R&D Binder never appears on the federal or Idaho return.

If the Idaho State Tax Commission examines a return on which the research credit was claimed, the substantiation expected is the same kind the IRS expects under federal Section 41: business-component identification, four-part-test rationale, contemporaneous evidence, and QRE allocation by employee, contractor, and supplies, plus support that the research was conducted in Idaho. The binder R&D Binder produces is built to that standard from the federal side, and the Idaho workpaper inherits the same business-component structure and adds the in-state allocation.

Our standard scope ends at delivering the binder and the state workpaper. Audit-defense engagement for an Idaho State Tax Commission examination is a separate scope at $250 per hour, scoped per incident. We do not represent before the Commission; that remains your CPA's responsibility or your tax controversy attorney's.

• Idaho Code section 63-3029G (Credits for research activities conducted in this state - carryforward), the 5 percent rate on the excess over the base amount, the 5 percent basic research payment credit, the Idaho-sourcing requirement, the nonrefundable treatment, and the 14-taxable-year carryforward. Idaho Legislature.
• Idaho State Tax Commission, Form 67 (Credit for Idaho Research Activities) and its instructions, the form on which the credit is computed and claimed.
• Idaho Administrative Code IDAPA 35.01.01.720, the rule implementing the credit for Idaho research activities.
• IRS Form 6765 (federal Credit for Increasing Research Activities) and Internal Revenue Code Section 41, the federal definition Idaho incorporates.

This page is general informational content, not tax advice for any specific taxpayer. The Idaho credit is administered by the Idaho State Tax Commission. The rate, the base computation, and the carryforward reflect Idaho Code section 63-3029G and Tax Commission guidance as of June 2026. Confirm current figures and deadlines with your CPA or the Commission before filing.

• The Section 41 four-part test
• What is a qualified research expense (QRE)?
• Form 6765 and Section G
• California R&D credit
• Illinois R&D credit
• Indiana R&D credit
• Massachusetts R&D credit