State R&D Tax Credits

State R&D Tax Credits


Credit Name: Research and Development Credit

Expiration Date: 1/1/2015

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

Credit Carry forward: No – must be used to offset tax in the year the expense was incurred

Description: Credit percentage is 1.5% of 8% (0.12%) of taxable wages for personnel spending greater than 92% of their time in qualified research. This applies to contractors, also. Credit amount cannot exceed the lesser of entity’s total tax liability or $2M.

Other Notes: Must apply for the credit by April 30 of the year following the close of the tax year.

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