Research & Development Tax Credits by State

While Alabama doesn't have a statute specific to R&D, the Alabama Jobs Act provides incentives to qualified businesses for approved projects that create new jobs in the state, including those conducting space research.

Credits Available: Yes

Deadline for Tax Filing: Online Application

Summary:

• Tax credit of up to 1.5% annually of qualified capital investment for a qualified project, for a period of up to 10 years*
• The tax credit can be utilized against:
  • Income taxes, including estimated taxes;
  • Financial institution excise tax;
  • Insurance premiums tax;
  • Utility taxes paid; or
  • A combination of the above taxes for a period of 10 years.

Alaska provides a research and development credit. If the taxpayer is allowed to claim the federal research and development credit under IRC § 41 for federal tax purposes, the credit is also allowed on the taxpayer's Alaska return but is limited to 18% of the amount of the federal credit apportioned to Alaska.

Credits Available: Yes

Deadline for Tax Filing: Due with Alaska Tax Return

Summary:

• 18% of the calculated federal IRC Section 38-eligible tax credits, which includes the R&D Credit
• The definition of qualified research expenses is the same as under IRC § 41.
• Qualified activities need not be conducted in Alaska to qualify, but must be conducted within the United States.

Under both A.R.S. §43-1168 and A.R.S. §43-1074.01, the state of Arizona offers a none refundable R&D tax credit equivalent to 24% of the first $2,500,000 in qualifying expenditures and 15% of all expenses exceeding $2,500,000. Arizona also offers a partial refund of the R&D tax credit under Senate Bill 1254 and A.R.S. §41-1507. The partial refund, up to 75% of the excess credit, is only available to companies that employ less than 150 full-time employees and have received a letter of certification from the Arizona Commerce Authority (ACA).

There is an extra refund of 10% offered to companies that made research payments to a university in Arizona. An individual or corporate income tax credit is available for taxpayers with qualifying basic research payments to a university under the jurisdiction of the Arizona Board of Regents. The credit is for taxpayers that qualify for the general Arizona Research and Development income tax credit. To be eligible to take the additional income tax credit for making basic research payments to Arizona State University, Northern Arizona University, or the University of Arizona, a taxpayer must:

• Have a letter of certification from the Arizona Commerce Authority
• Have a letter of approval certifying the credit amount from the Arizona Department of Revenue

Credits Available: Yes

Deadline for Tax Filing: Due with Arizona Tax Return

Summary:

• 24% of the first $2.5 million in QREs, plus
• 15% of the QREs in excess of $2.5 million
• No ASC method

Arkansas provides a research and development credit.

Research Park Support Donation Credit: A credit is available for Donation Made To An Accredited Institution of Higher Education To Support A Research Park. The amount of the credit is 33% of a qualified donation made to an accredited institution of higher education to support a research park authority.

In-House Research Income Tax Credit: A business that conduct "in-house" research within a research facility that is operated by the eligible business may claim a credit equal to 20% of the amount spent on in-house research that exceeds the base year for a period of three years and the incremental increase in qualified research expenditures for the succeeding two years.

In-House Research by Targeted Business Income Tax Credit: A credit is available for or qualified research expenditures incurred in connection with a financial incentive agreement with the Economic Development Commission. The amount of the credit is 33% of qualified research expenditures for each of the first five years of the financial incentive agreement.

In-House Research in Area of Strategic Value Income Tax Credit: A taxpayer who invests in in-house research in an area of strategic value; or a project under the research and development programs offered by the Arkansas Science and Technology Authority and approved by its Board of Directors may claim a credit equal to 33% of qualified research expenditures for each of the first five years of the financial incentive agreement.

Credits Available: Yes

Deadline for Tax Filing: Application

Summary:

• 10% of QREs (In-House Research and Development)
• 33% of QREs incurred each year, for up to five years (In-House Research by a Targeted Business, Research and Development in Area of Strategic Value and University Based R&D)

California law generally conforms to IRC §41, and the federal R&D tax credit, modified by California Revenue & Taxation Code (“RTC”) §17052.12 (Personal Income Tax) and RTC §23609 (Corporation Tax), the California R&D tax credit also reduces income or franchise tax liabilities.

Taxpayers qualify for the R&D tax credit if the taxpayer paid or incurred qualified research expenses while conducting qualified research in California. Taxpayers claim the California R&D Tax Credit on FTB Form 3523, for the year the Company paid or incurred qualified research and development expenses in California.

The credit is equal to 15% of the excess of the qualified research expenses over the base amount, plus 24% of the basic research payments.

Credits Available: Yes

Deadline for Tax Filing: Due with California Tax Return

Summary:

• 15% of the excess of California qualified research expenses for the taxable year over the base period research expenses.
• 24% of basic research expenses for university-based research for the taxable year.

Colorado provides a research and development credit if the taxpayer is located within an enterprise zone. Application required (must pre-certify with their local EZ administrator to be eligible to claim credit (See Form DR 0074). Pre-certified taxpayers who intend to claim EZ R&D credit must complete a certification application (See Form DD 0077) and receive approval from local EZ Administrator.

Credits Available: Yes

Deadline for Tax Filing: Due with Colorado Tax Return

Summary:

• The R&D tax credit equals 3% of the amount claim period QREs exceeds the average QREs from the prior two years
• In each tax year, the taxpayer may claim no more than 25% of the total credit (remainder to be carried forward) plus any applicable carryover amount from a prior year up to 25% of the original credit.The Credit is only available to taxpayers located with certain enterprise zones.

Connecticut provides research and development credits.

• Research and Experimental Expenditures Credit equal to 20% of the amount spent by the corporation directly on research and experimental expenditures.
• Research and Development Expenditures Credit based on the amount of qualified research and development expenditures in Connecticut.
• Credit is 1% of expenditures if $50 million or less; $500,000 plus 2% of the excess over $50 million if over $50 million but not over $100 million; $1.5 million plus 4% of the excess over $100 million if over $100 million but not over $200 million; and 6% of the excess over $200 million.

Credits Available: Yes

Deadline for Tax Filing: Due with Connecticut Tax Return

Summary:

Two credits are available for Connecticut (RC and RDC):

• Incremental - RC: Multiply 20% of the excess of the qualified research and experimental expenses during the current claim year over the qualified research and experimental expenses during the prior year.
• Non-incremental - RDC: 6% of its research and development expenses. (Eligible for Qualified Small Businesses only)
• Exchange of Tax Credit for Refund (only credits earned in the current year and entitled to be claimed in the current year may be exchanged.) A qualified small business (less than $70M of gross income in the previous year) that cannot take this tax credit in a taxable year in which it could otherwise be taken, as a result of having no tax liability (except pays either the capital tax base or minimum $250), may exchange the tax credit with the State of Connecticut for a tax credit refund equal to 65% of the value of the tax credit or may elect to carry the tax credit forward as indicated above. Small businesses are limited to $1,500,000 of credits

Under 72 Del.Laws,c 23, the state of Delaware offers a research credit that is calculated under similar requirements as IRC § 41. The Delaware credit offers two computation methods. The first method presents a credit worth roughly 10% of the Company’s qualified Delaware QREs over the Delaware base amount. The second method presents a credit worth roughly 50% of the apportioned share of the taxpayer’s federal ASC credit. Under Delaware law, if a portion of the credit is unusable due to liability limitations, the remainder will be paid out as a refund.

The Delaware Division of Revenue must first approve any taxpayer electing to qualify for the Delaware Research & Development Tax Credits. After receiving tax credit approval from the Delaware Division of Revenue, the amount of approved credit on Delaware Form 2071AC must be transferred to the appropriate line on Delaware Form 700. Delaware Forms 700 and 2071AC must be attached to each annual income tax return approved for the credit.

Delaware is the only state in the country that combines a zero-expenditure cap and refundable tax credit.

Credits Available: Yes

Deadline for Tax Filing: Application due by September 15

Summary:

• METHOD A: 10% of the excess of the taxpayer’s total Delaware QREs for the taxable year over the Deleware base amount; or

  For a small business with less than $20,000,000 in gross receipts, the credit is 20% of the excess of the taxpayer's total Deleware base amount.

• METHOD B: 50% of Delaware’s apportioned share of the taxpayer’s federal research and development tax credit calculated using the Alternative Simplified Credit method.

Unfortunately, Washington D.C. does not provide a research and development credit.

Credits Available: No

Florida provides a Research and Development Tax Credit for certain qualified research expenses incurred in Florida. The credit amount is 10% of the excess qualified research expenses over a specified base amount. The credit is claimed using Florida Form F-1120. The application must be submitted online.

Corporations, as defined in s. 220.03, F.S., that also meet the definition of qualified target industry business, as defined in s. 288.106(2)(n), F.S., may apply. However, only qualified target industry businesses in the manufacturing, life sciences, information technology, aviation and aerospace, homeland security and defense, cloud information technology, marine sciences, materials science, and nanotechnology industries may qualify for a tax credit. A corporation applying for the tax credit must include a letter from the Department of Economic Opportunity certifying that it is an eligible qualified target industry business with its application.

Businesses that are partnerships, LLCs taxed as partnerships, or disregarded single member LLCs are not corporations under Section 220.03, F.S., and, therefore, may not apply for an allocation of credit. However, each corporate partner of a partnership may apply separately for an allocation of credit based on the corporation’s separate research expenses, including allocated partnership research expenses, if the corporate partner is also a qualified target industry business. For disregarded entities, the corporation that owns the single member limited liability company may apply separately for an allocation of credit based on the corporation’s separate research expenses, including those of the disregarded single member limited liability company, if the corporate owner is also a qualified target industry business.

Credits Available: Yes

Deadline for Tax Filing: Online applications open between March 20 - March 26

Summary:

• 10% of the excess of the Florida QREs over the base amount.
• The base amount is calculated as the average of Florida QREs for the prior four taxable years.

Georgia provides an R&D tax credit equal to 10% of the excess QREs over the base amount.

Credits Available: Yes

Deadline for Tax Filing: Due with Georgia tax return

Summary:

• The R&D tax credit equals 10% of the amount claim period QREs exceeds the base amount.

Hawaii provides a research and development tax credit.

The Hawaii Tax Credit for Research Activities is equal to the federal credit for research activities provided by IRC § 41, but research must be conducted in Hawaii.

Hawaii provides a refundable income tax credit for qualified high technology businesses with Hawaii research activities subject to an annual cap of $5 million. ​With references to the base amount under IRC Section 41 no longer applying after 2019, credit for all qualified research expenses may be taken without regard to the amount of expenses for previous years. The program will now expire on December 31, 2024 unless further legislation is passed.

Credits Available: Yes

Deadline for Tax Filing: Due with Hawaii tax return

Summary:

• The R&D tax credit equals the amount of federal tax credit from Form 6765 multiplied by the percentage of eligible research expenses attributable to activities conducted in Hawaii.

Idaho provides a Credit for Idaho Research Activities using Idaho Form 67 for certain qualified research expenses incurred in Florida. The credit amount is 5% of the excess qualified research expenses over a specified base amount.

Credits Available: Yes

Deadline for Tax Filing: Due with Idaho tax return

Summary:

• The R&D tax credit equals 5% of the amount that the taxpayer's current year QREs exceed a base amount.

Illinois provides a research and development credit. Until 01/01/2027, a credit is allowed against income tax for research activities in Illinois. The credit is equal to 6.5% of qualifying expenditures over a comparative base amount.

Credits Available: Yes

Deadline for Tax Filing: Due with Illinois tax return

Summary:

• The R&D tax credit equals 6.5% on the excess of IL qualified research expenses over the average amount of QREs for the three preceding taxable years.

The state of Indiana offers two tax incentives targeted at encouraging investments in research and development. Taxpayers may receive a credit against their Indiana state income tax liability calculated as a percentage of qualified research expenses. In addition, taxpayers may be refunded sales tax paid on purchases of qualified research and development equipment. The Indiana Department of Revenue oversees these incentive programs.

Research Expense Credits

Under Ind. Code §6-3.1-4-1 The state of Indiana offers a research credit that is calculated under similar requirements as IRC § 41. The Indiana credit is worth 15% of the qualified expenditures over a base amount of $1 million. Starting in 2009, Indiana now allows taxpayers to compute the credit using an alternative method or a regular method. The credit may be applied toward any taxes on Gross, Adjusted Gross, and Supplemental Net Income Tax. For passthrough entities, in the event of unused credit, the remaining credit multiplied by the percentage of income distribution of each partner or shareholder will pass. The big difference in the Indiana credit and the federal credit is that it may not pass to trusts and estates. Indiana has set requirements to determine if the research was conducted in Indiana:

1. The place(s) in Indiana where services are performed;
2. The Indiana location of the person(s) performing the services;
3. The Indiana location where qualified research supplies are consumed; and
4. Any other factors relevant to activities in Indiana.

Research & Development Sales Tax Exemption

There is a 100 percent sales tax exemption for qualified research and development equipment and property purchased. Taxpayers may file a claim for refund for sales tax paid on such a retail transaction should they not purchase it exempt from sales tax at the time of the actual transaction.

Research and development equipment and property is defined as tangible personal property that has not previously been used in Indiana for any purpose and is acquired by the purchaser for the purpose of research and development activities devoted to experimental or laboratory research and development for new products, new uses of existing products, or improving or testing existing products.

Credits Available: Yes

Deadline for Tax Filing: Due with Indiana tax return

Summary:

• Regular Credit Method: 15% of the increase in Indiana qualified research expenses over the base amount up to $1 million. The credit is 10% if the amount is in excess of $1 million.
• Alternative Incremental Credit Method: 10% of the excess of Indiana QREs that is in excess of 50% of the average of the preceding three years' QREs. Credit amount is 5% of Indiana QREs if there are no expenses in the three prior years.

The State of Iowa offers a refundable tax credit so long as companies meet the requirements of IRC § 41. The Iowa refundable credit is roughly 6.5% of increased research expenses plus 6.5% of basic research expenses conducted in Iowa. There is also an alternative simplified credit which is worth roughly 4.55% of the expenditures occurred in Iowa over the preceding three years. The taxpayer must claim the federal credits on Form 6765.

Credits Available: Yes

Deadline for Tax Filing: Due with Iowa tax return

Summary:

• Regular Method: 6.5% of the excess of qualified research expenses during the tax year over a computed base amount of expenditures using Iowa's apportioned share of research expenses.
• Alternative Simplified Method: 4.55% of the difference between the current year IA QREs and 50% of the average of the prior 3 years IA QREs.
• The Base Amount shall not be less than 50% of the QREs for the credit year.
• The law underwent changes in 2017. If a business has not yet claimed the credit for tax year 2017 but is eligible under the new limitations, the business should complete a return and include a copy of the new 2017 IA 128 and IA 128S form.If a business has already claimed the credit for tax year 2017 and is still eligible under the new limitations, no further action is needed. There is no need to complete an updated 2017 form.

  If a business already filed a credit claim for a prior tax year and is no longer eligible, the business should file an amended return to add back the amount of the Research Activities Credit claimed. The business should file an amended return by October 31, 2018, in order to avoid receiving a notice of assessment from the Department.

  Penalty and interest through October 31, 2018 will be waived for a taxpayer who files an amended 2017 return to add back a Research Activities Credit and files a Penalty Waiver Request. The waiver will only apply to adjustments attributable to the Research Activities Credit.

Beginning in tax year 2013, this credit shall only be available to corporations that are subject to the Kansas corporate income tax, i.e. C corporations. This credit shall not be available to individuals, partnerships, S corporations, limited liability companies, and other pass-through entities.

The Kansas research and development credit allows a taxpayer who makes expenditures in research and development activities in Kansas to claim an income tax credit. The credit is subject to 25% of the credit plus any carry forward. Any remaining unused credit may be carried forward in 25% increments until the total amount of credit is used. The credit is claimed using Kansas Schedule K-53

Credits Available: Yes

Deadline for Tax Filing: Due with Kansas tax return

Summary:

• The R&D tax credit equals 6.5% of the difference between Kansas QREs in claim period and the average of QREs of claim period and prior two years.

The Qualified Research Facility Tax Credit is a nonrefundable credit equal to 5% of the qualified costs of construction of research facilities that may be applied against income taxes imposed by KRS 141.020 (individual income tax) or KRS 141.040 (corporation income tax) and the limited liability entity tax (LLET) imposed by KRS 141.0401 with the ordering of credits as provided in KRS 141.0205. Any unused credit may be carried forward 10 years.

Construction of research facilities – constructing, remodeling, and equipping facilities in this state or expanding existing facilities in this state for qualified research; includes only tangible, depreciable property; and does not included any amounts paid or incurred for replacement property.

Qualified research – qualified research as defined in Section 41 of the Internal Revenue Code.

Credits Available: Yes - Qualified Research Facility Tax Credit

Deadline for Tax Filing: Due with Form 720

Summary:

• A credit of 5 percent (5%) of the qualified costs of construction, remodeling, expanding and equipping facilities in Kentucky for "qualified research."
• The Schedule QR, Qualified Research Facility Tax Credit, must be filed with the income tax return claiming the credit. A schedule of the tangible, depreciable property listing the date purchased, date placed in service, description and cost must be included with the return.

  A copy of the Schedule QR is attached each year the credit is claimed on the filed income tax return. Taxpayers that receive a share of the qualified research facility credit via a Kentucky K-1 through their ownership in a pass-through entity must file Schedule TCS for corporations and pass-through entities or Schedule ITC for individuals. These schedules should be completed to reflect the taxpayer's share of the credit. The Schedule TCS or Schedule ITC is required to be attached to any return on which the credit is claimed, along with a copy of the Schedule QR.

Louisiana Research and Development Tax Credit

The Research and Development Tax Credit encourages existing businesses with operating facilities in Louisiana to establish or continue research and development activities within the state.

Provides up to a 30% tax credit on qualified research expenditures incurred in Louisiana — with no cap and no minimum requirement.

The Tax Credit Incentive is open to companies who have incurred research and development expenditures in Louisiana and who meet certain requirements (where listed). Only research and development conducted in Louisiana will qualify for the Tax Credit Incentive.

In order for credits to be awarded, a taxpayer must claim the expenditures within one year after December 31 of the year in which the expenditure was incurred.

Ineligible Businesses

The following businesses will be ineligible to participate in the Research and Development tax credit program, unless specifically invited by the Secretary of LED to:

• Professional services firms that do not have a pending or issued United States patent related to the qualified research expenditures claimed; and
• Businesses primarily engaged in custom manufacturing and custom fabricating that do not have a pending or issued United States patent related to the qualified research expenditures claimed.

Credits Available: Yes

Deadline for Tax Filing: Due with Louisiana tax return

Summary:

• Five percent of the difference, if any, of the Louisiana QREs for the taxable year minus the base amount, if the taxpayer is an entity that employs one hundred or more persons.
• Ten percent of the difference, if any, of the Louisiana QREs for the taxable year minus the base amount, if the taxpayer is an entity that employs fifty to ninety-nine persons.
• Thirty percent of the difference, if any, of the Louisiana QREs for the taxable year minus the base amount, if the taxpayer is an entity that employs less than fifty persons.
• Base Amount definition:
  • If the taxpayer is an entity that employs fifty or more persons, the base amount shall be eighty percent of the average annual qualified research expenses within Louisiana during the three years preceding the taxable years.
  • If the taxpayer is an entity that employs less than fifty persons, the base amount shall be fifty percent of the average annual qualified research expenses within Louisiana during the three preceding taxable years.

Maine offers tax credits and sales tax exemptions for businesses engaged in certain specialized areas. In general, R & D tax credits are based on federal IRS rules and applied for as part of a company’s state corporate tax return.

Research Expense Tax Credit:

The credit is based on a percentage of the federal Credit for Increasing Research Activities. Limitations: the credit is limited to 5% of the excess qualified research expenses over the previous three-year average plus 7.5% of the basic research payments under IRC § 41(e)(1)(A). The credit is further limited to 100% of the first $25,000 in tax liability plus 75% of the tax liability in excess of $25,000. The credit cannot be carried back, but can be carried forward for up to 15 years.

Sales Tax Exemptions

Maine state sales tax exemptions are available for manufacturing, R&D, custom computer programming, fuel & electricity, and biotechnology.

Manufacturing - Sales of machinery and equipment used by the purchaser directly and primarily in the production of tangible personal property for later sale or use is eligible for a sales tax exemption. In addition, items consumed or destroyed directly or primarily in production, and repair and replacement parts for qualified production equipment are exempt from sales tax. Also, any manufacturer is exempt from paying 95% of the sales tax on fuel and/or electricity used in the manufacturing facility.

Research and Development - Sales of machinery and equipment used by the purchaser directly and exclusively in research and development is eligible for a sales tax exemption.

Custom Computer Programming - Any custom computer programming purchased by a business is exempt from sales tax. If a standard program is purchased, then customized, the cost of the standard program would be taxable and the customizing, if separately stated, would be nontaxable.

Fuel & Electricity For Use In Manufacturing - Manufacturers are exempt from paying 95% of the sales tax on fuel and/or electricity used in the manufacturing operation.

Biotechnology - Sales of machinery, equipment, instruments and supplies used by the purchaser directly and primarily in a biotechnology application are eligible for a sales tax exemption.

Credits Available: Yes

Deadline for Tax Filing: Due with Maine tax return

Summary:

• 5% of the excess qualified research expenses over the previous three-year average; plus
• 7.5% of basic research payments (relating to research performed by qualified universities or scientific research organizations).

Credits Available: Yes

Deadline for Tax Filing: Application due by November 15 using Commerce's online system

Summary:

There are two Maryland R&D tax credits available for companies:

• Basic R&D Tax Credit: Three percent (3%) of eligible R&D expenses that do not exceed the Maryland Base Amount. If the total credits applied for exceed $5.5 million, the business's Basic tax credit is prorated.
• Growth R&D Tax Credit: Ten percent (10%) of eligible R&D expenses in excess of the Maryland Base Amount. If the total credits applied for exceed $6.5 million, the business's Growth R&D tax credit is prorated.

Credits Available: Yes

Deadline for Tax Filing: Due with Massachusetts Tax Return on Form Schedule RC

Summary:

• Alternative Simplified Method: For calendar years 2015, 2016, and 2017, the amount of the alternative simplified credit is equal to 5% of the taxpayer’s qualified research expenses for the taxable year that exceed 50% of the taxpayer’s average qualified research expenses for the 3 taxable years preceding the taxable year for which the credit is being determined.For calendar years 2018, 2019 and 2020, the amount of the alternative credit will be 7½% of the taxpayer’s qualified research expenses for the taxable year for which the credit is being determined that exceed 50% of the taxpayer’s average qualified research expenses for the preceding 3 taxable years.For calendar years beginning in calendar year 2021, the amount of the alternative credit will be 10% of the taxpayer’s qualified research expenses for the taxable year for which the credit is being determined that exceed 50% of the taxpayer’s average qualified research expenses for the preceding 3 taxable years.
• Regular Method: The Massachusetts credit for research expenses for the taxable year shall be an amount equal to the sum of the following amounts:
  • 10% of the excess Massachusetts QREs for the taxable year over the Massachusetts qualified research base amount, plus 
  • 15% of Massachusetts basic research payments for the taxable year.

Credits Available: Yes

Deadline for Tax Filing: March 15th of the following calendar year regardless of corporate year end

Summary:

• 10% above base amount or 3% of the total Michigan QREs during the tax year for a large business (over 250 employees) capped at 2 million per year. 15% QREs above base amount capped at a total of 250,000 dollars per year

Credits Available: Yes

Deadline for Tax Filing: Due with Minnesota tax return

Summary:

• 10% of the first $2 million of qualifying expenses over the base amount, and 4% of expenses over $2 million.
• Minnesota does not conform to the federal “Alternative Simplified Method".

Credits Available: Yes

Deadline for Tax Filing: Applications

Credits Available: No

Credits Available: No

Credits Available: Yes

Deadline for Tax Filing: Due with Nebraska tax return

Summary:

• If you are doing business only in Nebraska, and only at off-campus sites, multiply the Federal credit amount by 15%.
• If you are doing business only in Nebraska, and only at on-campus sites, multiply the Federal credit amount by 35%.Provide the address of each college or university campus or facility where R&D was conducted.
• If the taxpayer doesn't meet either of those, then the credit must be apportioned using two available methods.

Unfortunately, Nevada does not provide a research and development credit. You could still be eligible for the Federal R&D Credit - Check out our calculator here to estimate your potential benefit.

Credits Available: No

Credits Available: Yes

Deadline for Tax Filing: Application (Form DP-165) due by June 30

Summary:

• 10% of qualified research and development expenditures and can not exceed $50,000

Credits Available: Yes

Deadline for Tax Filing: Due with New Jersey tax return

Summary:

• 10% of the excess of the NJ qualified research expenses for the tax period over the base amount; plus
• 10% of basic research payments for the tax period

Credits Available: Yes

Deadline for Tax Filing: Application is due within one year following the end of the calendar year in which the qualified expenditure was made.

Summary:

• Basic Technology Jobs Tax Credit is 5% of Qualified New Mexico Expenditures (or 10% if in a rural area)
• Additional Technology Jobs Tax Credit is 5% of Qualified New Mexico Expenditures (or 10% if in a rural area)

Credits Available: Yes

Deadline for Tax Filing: Due with New York tax return

Credits Available: Yes

Deadline for Tax Filing: Due with North Dakota tax return

Summary:

• 25% of first $100,000 of excess expenses
• 8% of expenses over $100,000
• For tax years 2019 and after, a taxpayer may elect to use an alternative simplified method to calculate the credit. Under this method, the credit is equal to 17.5% of the first $100,000 of North Dakota alternative excess research and development expenses plus 5.6% of the amount in excess of $100,000

Credits Available: Yes

Deadline for Tax Filing: Due with Ohio tax return

Summary:

• The Ohio R&D tax credit equals 7% of Ohio qualified R&D expenses over the average of qualified expenses for the three prior taxable years.

Credits Available: No

Credits Available: No

Credits Available: Yes

Deadline for Tax Filing: Application due by September 15

Summary:

• The Pennsylvania R&D tax credit equals 10% (large businesses) or 20% (small businesses) of Pennsylvania QREs less the greater of
  • 50% of expenses
  • average of prior 4 years of QREs.

Credits Available: Yes

Deadline for Tax Filing: Due with Rhode Island tax return

Summary:

• The R&D tax credit equals the excess of the qualifying research expenses in the taxable year over the base period expenses:
  • 22.5% for expenditures up to $111,111; and
  • 16.9% for the remaining expenditures over the $111,111

Credits Available: Yes

Deadline for Tax Filing: Due with South Carolina tax return

Summary:

• 5% of qualified South Carolina research expenditures.

Credits Available: No

Credits Available: No

Credits Available: Yes

Deadline for Tax Filing: Franchise Tax Form due May 15th (or extended to November 15th)

Summary:

• 5% of the excess amount of QRETs in the current period over the base amount (half of the average of the three preceding taxable years QRETs)
• If there are no qualified research expenses in one or more of the three preceding tax years, the credit equals 2.5% of all qualified research expenses incurred during that period.
• If a taxable entity contracts with one or more public or private institutions of higher education for the performance of qualified research and the taxable entity has qualified research expenses incurred in Texas by the taxable entity under the contract during the period on which the report is based, the credit for the report equals 6.25% of the difference (if there is no qualified research expenses in one or more of the three tax periods preceding the period on which the report is based, the credit for the period on which the report is based equals 3.125% of all qualified research expenses incurred during that period).

Credits Available: Yes

Deadline for Tax Filing: Due with Utah tax return

Summary:

The Utah R&D tax credit is the sum of the following:

• 5% of qualified research expenses in Utah for the current tax year that exceed a base amount,
• 5% of payments made to a qualified organization for basic research in Utah for the current taxable year that exceed a base amount, and
• 7.5% of qualified research expenses for the taxable year.

Credits Available: Yes

Deadline for Tax Filing: Due with Vermont tax return

Summary:

• 27% of the federal credit for Qualified R&D expenses in Vermont
• Vermont credit applies to personal income tax or business or corporate income tax

Credits Available: Yes

Deadline for Tax Filing: Application due by July 1

Summary:

• Primary VA R&D Credit Method (Form RDC) - the credit is equal to:
  15% of the first $300,000 in Virginia qualified R&D expenses, or
  20% of the first $300,000 of Virginia qualified R&D expenses if the research was conducted in conjunction with a VA college or university, to the extent the expenses exceed the base amount.
• Alternative Simplified Method:
  10% of the difference between VA QREs for the taxable year and 50% of the average VA QREs incurred for the three preceding taxable years.
• Major Research and Development Expenses Tax Credit' (Form MRD) is available for companies with VA QREs in excess of $5 million for the claim tax year. The credit equals 10% of a taxpayers current year Virginia QREs over the base amount (50% of the average for prior 3 tax years).

Credits Available: No

Credits Available: No

Credits Available: Yes

Deadline for Tax Filing: Due with Wisconsin tax return

Summary:

• 5.75% of the taxpayer's Wisconsin Qualified Research Expenses (QREs) for the taxable year exceed 50% of the average Wisconsin QREs for the 3 preceding taxable year.
• If the taxpayer had no Wisconsin Qualified Research Expenses (QREs) in any of the 3 preceding tax years, the credit amount is 2.875% of the taxable years' Wisconsin QREs.

Credits Available: No