State R&D Tax Credits
State R&D Tax Credits
Credit Name: Section 7-9H-1 through 7-9H-6 Research and Development Small Business Tax Credit
Sections 7-9F-1 through 7-9F-12 Technology Jobs Tax Credit
Expiration Date: Research and Development Small Business Tax Credit: June 30, 2009, but for no more than 35 consecutive calendar months after the first month for which a claim for the credit is made. Available again from July 1, 2011 through June 30, 2015
Technology Jobs Tax Credit: None
Does it apply to C corps and pass-through entities?: Research and Development Small Business Tax Credit: Corporation, general partnership, limited partnership, limited liability company, sole proprietorship or other similar entities, that:
- Employed no more than twenty-five employees on a fulltime-equivalent basis in any prior calendar month;
- Had total revenues of no more than $5,000,000 in any prior fiscal year;
- Did not in any prior calendar month have more than 50% of its voting securities or other equity interest with the right to designate or elect the board of directors or other governing body of the qualified business owned directly or indirectly by another business; and
- Has made qualified research expenditures for the period of twelve calendar months ending with the month for which the credit is sought of at least 20% of its total expenditures for those twelve calendar months.
Technology Jobs Tax Credit: Yes
Credit Carry forward: R&D Credit: offsets 50% of liability, so n/a
Technolgy Jobs Credit: unlimited
Description: Research and Development Small Business Tax Credit:
Between July 1, 2011 and June 30, 2015, a taxpayer that is a qualified research and development small business is eligible for a credit in a reporting period in an amount equal to 50% of the sum of all gross receipts taxes, compensating taxes or withholding taxes due to the state or payable by the taxpayer with respect to C14that business for that reporting period. The credit provided in this section may be referred to as the “research and development small business tax credit”.
Technology Jobs Tax Credit:
- The basic credit provided for in the Technology Jobs Tax Credit Act is an amount equal to four percent of the amount of qualified expenditures made by a taxpayer conducting qualified research at a qualified facility.
- The additional credit provided for in the Technology Jobs Tax Credit Act is an amount equal to four percent of the amount of qualified expenditures made by a taxpayer conducting qualified research at a qualified facility.
A taxpayer claiming the additional credit must compute annual payroll expense for the period specified in the application and must compute base payroll expense as of a date one year prior to the annual payroll date.
Other Notes: R&D Credit and Technology Job Credit must be claimed within 1 year of the end of the tax period. Be sure to read as much information about the credits as possible; both credits cannot be used together, though each credit may be evaluated monthly. Many other additional restrictions.