State R&D Tax Credits

State R&D Tax Credits


Credit Name: Form 308 – Research & Development Income Tax Credit

Expiration Date: Expires 2021

Does it apply to C corps and pass-through entities?: Yes

Credit Carry forward: Carry Forward 15 years, with varying restrictions based on tax year credit was earned.

Description: Credit is 24% of the first $2.5M in excess QREs, 15% of excess QREs over $2.5M. The base must be calculated using the traditional method.

Other Notes: Partially refundable beginning tax year 2011. If taxpayer has less than 150 employees, they may elect to receive 75% of excess credit refunded and waive the remaining 25% instead of carrying all excess credit forward. Taxpayer must apply to the Arizona Commerce Authority and receiv a Certificate of Qualification related to the credit for increased research activities to be eligible for a refund. Taxpayers with greater than 150 employees may not request a refund.

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