R&D Credits by State
Select your state to reveal its R&D tax advantages.
Grasping the nuances of R&D tax credits for each state can be intricate. That's why we've crafted this interactive R&D Tax Credit Map for a straightforward glimpse into each state's offerings. Navigate by choosing your state and delve into its distinct R&D tax credits.
Grasping the nuances of R&D tax credits for each state can be intricate. That's why we've crafted this interactive R&D Tax Credit Map for a straightforward glimpse into each state's offerings. Navigate by choosing your state and delve into its distinct R&D tax credits.
Click on any state to know more
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STATE
Nevada
Not an opportunity for
Nevada
NAME
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
DESCRIPTION
PERCENTAGE
STATE
Oklahoma
Not an opportunity for
Oklahoma
NAME
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
DESCRIPTION
PERCENTAGE
STATE
Alabama
Not an opportunity for
Alabama
NAME
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
DESCRIPTION
PERCENTAGE
STATE
Tennessee
Not an opportunity for
Tennessee
NAME
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
DESCRIPTION
PERCENTAGE
STATE
North Carolina
Not an opportunity for
North Carolina
NAME
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
DESCRIPTION
PERCENTAGE
STATE
West Virginia
Not an opportunity for
West Virginia
NAME
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
DESCRIPTION
PERCENTAGE
STATE
Hawaii
Not an opportunity for
Hawaii
NAME
Tax Credit for Research Activities
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
Yes
DESCRIPTION
Refundable credit with similar definitions as federal for Qualified Research Expenses and Qualified Research Activities except only include Hawaii based expenses.
PERCENTAGE
% on federal credit based on percentage of Hawaii-based expenses to federal expenses
STATE
Mississippi
Not an opportunity for
Mississippi
NAME
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
DESCRIPTION
PERCENTAGE
STATE
South Dakota
Not an opportunity for
South Dakota
NAME
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
DESCRIPTION
PERCENTAGE
STATE
Alaska
Not an opportunity for
Alaska
NAME
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
DESCRIPTION
PERCENTAGE
STATE
Montana
Not an opportunity for
Montana
NAME
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
DESCRIPTION
PERCENTAGE
STATE
Washington
Not an opportunity for
Washington
NAME
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
DESCRIPTION
PERCENTAGE
STATE
Wisconsin
Not an opportunity for
Wisconsin
NAME
The Basic Research Credit
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
Yes
DESCRIPTION
Nonrefundable credit with similar definitions as federal for Qualified Research Expenses and Qualified Research Activities except only include Wisconsin based-expenses. There is additional credit available for certain industries and development zones.
PERCENTAGE
5.75% on incremental expenses over base amount. Base amount follows federal ASC method.
STATE
Virginia
Not an opportunity for
Virginia
NAME
Research and Development Expenses Tax Credit
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
Yes
DESCRIPTION
Refundable credit with similar definition to federal for Qualified Research Expenses and Qualified Research Activities, except only include Virginia-based expenses.
PERCENTAGE
15% on first $300,000 of expenses over a base amount. Limited to $45,000.
STATE
Utah
Not an opportunity for
Utah
NAME
Tax Credit for Research Activities in Utah (Code 12)
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
Yes
DESCRIPTION
Two nonrefundable credits (Flat and Incremental) with similar definitions as federal for Qualified Research Expenses and Qualified Research Activities except only include Utah-based expenses.
PERCENTAGE
5% on incremental expenses over base amount for Incremental Credit 7.5% of expenses for the Flat Credit
STATE
Vermont
Not an opportunity for
Vermont
NAME
Research and Development Tax Credit
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
Yes
DESCRIPTION
Nonrefundable credit with similar definition to federal for Qualified Research Expenses and Qualified Research Activities, except only include Vermont-based expenses.
PERCENTAGE
27% of the federal tax credit.
STATE
South Carolina
Not an opportunity for
South Carolina
NAME
Tax Credit for Research and Development Expenditures
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
Yes
DESCRIPTION
Nonrefundable credit with similar definition to federal for Qualified Research Expenses and Qualified Research Activities, except only include South Carolina-based expenses.
PERCENTAGE
5% of expenses.
STATE
Rhode Island
Not an opportunity for
Rhode Island
NAME
Research & Development Expense Credit
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
C Corps only
DESCRIPTION
Nonrefundable credit with similar definition to federal for Qualified Research Expenses and Qualified Research Activities, except only include Rhode Island-based expenses.
PERCENTAGE
22.5% on incremental expenses up to $111,111 and 16.9% on expenses over $111,111.
STATE
Pennsylvania
Not an opportunity for
Pennsylvania
NAME
Research and Development Tax Credit
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
Yes
DESCRIPTION
Nonrefundable credit with similar definition to federal for Qualified Research Expenses and Qualified Research Activities, except only include Pennsylvania-based expenses.
PERCENTAGE
10% (20% for "small business") on incremental expenses over base amount. Base amount is average expenses from four prior years.
STATE
Ohio
Not an opportunity for
Ohio
NAME
Credit for Qualified Research Expenses
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
The credit is only available to entities paying the Commercial Activity Tax (CAT)
DESCRIPTION
Nonrefundable credit with similar definitions as federal for Qualified Research Expenses and Qualified Research Activities except only include Ohio-based expenses.
PERCENTAGE
7% on incremental expenses over base amount. Base amount is the average expenses from the three prior years.
STATE
North Dakota
Not an opportunity for
North Dakota
NAME
Research Expense Credit
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
Yes
DESCRIPTION
Nonrefundable credit with similar definitions as federal for Qualified Research Expenses and Qualified Research Activities except only include North Dakota-based expenses.
PERCENTAGE
Up to 25% for regular method or up to 17.5% for ASC method, dependent on when research began in North Dakota.
STATE
New York
Not an opportunity for
New York
NAME
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
DESCRIPTION
PERCENTAGE
STATE
New Mexico
Not an opportunity for
New Mexico
NAME
Technology Jobs and Research and Development Tax Credit
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
C Corps, S Corps and any entity treated as a Partnership for federal income tax purposes.
DESCRIPTION
Nonrefundable credit with similar definition to federal for Qualified Research Expenses and Qualified Research Activities, except only include New Mexico-based expenses.
PERCENTAGE
5% of expenses or 10% of expenses if conducted in rural area. Additional credit if certain requirements are met.
STATE
New Jersey
Not an opportunity for
New Jersey
NAME
Research and Development Tax Credit
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
C Corps and S Corps only
DESCRIPTION
Nonrefundable credit with similar definitions as federal for Qualified Research Expenses and Qualified Research Activities except only include New Jersey-based expenses.
PERCENTAGE
10% on incremental expenses similar to federal method. Regular or ASC may be chosen for calculation method.
STATE
Missouri
Not an opportunity for
Missouri
NAME
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
DESCRIPTION
PERCENTAGE
STATE
Nebraska
Not an opportunity for
Nebraska
NAME
Research Tax Credit
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
Applies to any business entity that is “subject to sales tax"
DESCRIPTION
Refundable credit with similar definition to federal for Qualified Research Expenses and Qualified Research Activities, except only include Nebraska-based expenses. Credit is based on Federal credit.
PERCENTAGE
15% of federal credit amount.
STATE
New Hampshire
Not an opportunity for
New Hampshire
NAME
Research and Development Tax Credit
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
Credits are available to business organizations that have expenditures made during the fiscal year and subject to Business Profits Tax.
DESCRIPTION
Refundable credit with similar definition to federal, except only include New Hampshire-based wage expenses.
PERCENTAGE
10% on qualified New Hampshire wage expenses, not to exceed 50,000.
STATE
Minnesota
Not an opportunity for
Minnesota
NAME
Credit for Increasing Research
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
Yes, but not to Sole Proprietorships
DESCRIPTION
Nonrefundable credit with similar definitions as federal for Qualified Research Expenses and Qualified Research Activities except only include Minnesota-based expenses.
PERCENTAGE
10% on first $2 million of incremental expenses; 4% on incremental expenses in excess of $2 million.
STATE
Michigan
Not an opportunity for
Michigan
NAME
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
DESCRIPTION
PERCENTAGE
STATE
Massachusetts
Not an opportunity for
Massachusetts
NAME
Research Credit
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
It applies to corporations paying excise tax under MGL c 63
DESCRIPTION
Two nonrefundable credits (Fixed Base Ratio and ASC) with similar definitions as federal for Qualified Research Expenses and Qualified Research Activities except only include Massachusetts-based expenses.
PERCENTAGE
10% on incremental expenses for Fixed Base Ratio method. 7.5% on incremental expenses for 2020 (10% for 2021 and after) for ASC method.
STATE
Maryland
Not an opportunity for
Maryland
NAME
R&D Tax Credit
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
Yes
DESCRIPTION
R&D credit with a similar definition as federal for Qualified Research Expenses and Qualified Research Activities, except only includes Maryland-based expenses.
PERCENTAGE
10% on incremental expenses over the Maryland base amount.
STATE
Maine
Not an opportunity for
Maine
NAME
Research Expense Tax Credit
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
Yes
DESCRIPTION
Nonrefundable credit with similar definition to federal for Qualified Research Expenses and Qualified Research Activities, except only include Maine-based expenses.
PERCENTAGE
5% on incremental expenses over base amount.
STATE
Louisiana
Not an opportunity for
Louisiana
NAME
Research and Development Tax Credit
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
Yes
DESCRIPTION
A non-refundable credit with similar definition to federal for Qualified Research Expenses and Qualified Research Activities except only include Louisiana-based expenses. You must apply for the credit. Professional services and custom manufacturing companies do not qualify.
PERCENTAGE
30% on incremental expenses over base amount for companies with 0-49 employees 10% on incremental expenses over base amount for companies with 50-99 employees 5% on incremental expenses over base amount for companies with more than 100 employees
STATE
Kentucky
Not an opportunity for
Kentucky
NAME
Qualified Research Facility Tax Credit
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
Individuals, corporations, and pass-through entities.
DESCRIPTION
PERCENTAGE
The Kentucky Qualified Research Facility Tax Credit is available to businesses that invest in the construction of research facilities for authorized research, and it is equal to 5% percentage of the eligible costs incurred. The credit cannot be refunded, which means that it can only be used to offset the tax liability of the business. In other words, the credit cannot result in a direct payment or refund to the business. It’s important for companies to understand the eligibility requirements for this credit and the types of costs that qualify as eligible expenses. By taking advantage of this tax credit, businesses can reduce their overall tax liability and potentially reinvest those savings back into research and development activities.
STATE
Kansas
Not an opportunity for
Kansas
NAME
Credit Against Tax for Certain Research and Development Activity Expenditures
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
C Corps only
DESCRIPTION
Nonrefundable credit with similar definition to federal for Qualified Research Expenses and Qualified Research Activities, except only include Kansas-based expenses.
PERCENTAGE
6.5% on incremental expenses over base amount. Base amount is equal to average of current plus two prior years.
STATE
Iowa
Not an opportunity for
Iowa
NAME
Research Activities Credit (RAC)
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
Yes
DESCRIPTION
Refundable credit with similar definitions as federal for Qualified Research Expenses and Qualified Research Activities except only include Iowa based expenses and certain industries allowed or excluded.
PERCENTAGE
6.5% on the incremental expenses with a calculation similar to the regular federal method Alternatively, 4.55% on expenses that exceed a base amount similar to federal ASC.
STATE
Connecticut
Not an opportunity for
Connecticut
NAME
RC – Research and Experimental Expenditures Tax Credit (incremental) RDC - Research and Development Tax Credit (non-incremental)
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
C Corps only
DESCRIPTION
Nonrefundable credit with similar definition to federal for Qualified Research Expenses and Qualified Research Activities, except only include Connecticut-based expenses. Two credits available.
PERCENTAGE
20% on incremental increase in R&D expenses that are conducted in CT. 6% on non-incremental R&D expenses (less the QREs from the incremental Credit) with limitations.
STATE
Idaho
Not an opportunity for
Idaho
NAME
Credit for Idaho Research Activities
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
C Corps, S Corps, partnerships, trusts, and estates
DESCRIPTION
Nonrefundable credit with similar definition to federal for Qualified Research Expenses and Qualified Research Activities, except only include Idaho-based expenses.
PERCENTAGE
5% on incremental expenses over base amount similar to regular federal credit method.
STATE
Indiana
Not an opportunity for
Indiana
NAME
Indiana Research Expense Tax Credit
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
Yes
DESCRIPTION
Nonrefundable credit with similar definitions as federal for Qualified Research Expenses and Qualified Research Activities except only include Indiana based expenses.
PERCENTAGE
15% on first $1,000,000 of incremental research expenses over a base amount and 10% on incremental expenses in excess of $1,000,000. Calculation similar to federal regular method. Alternative method: 10% credit on incremental expenses similar to federal ASC method.
STATE
Florida
Not an opportunity for
Florida
NAME
Research and Development Tax Credit for Florida Corporate Income Tax
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
Only applies to “business enterprises,” which includes C and S corporations but excludes partnerships and LLC’s taxed as partnerships.
DESCRIPTION
Nonrefundable credit with similar definition to federal for Qualified Research Expenses and Qualified Research Activities, except only include Florida-based expenses and must be in a “targeted industry”.
PERCENTAGE
10% on incremental expenses over base amount.
STATE
Illinois
Not an opportunity for
Illinois
NAME
Research & Development Credit
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
Yes
DESCRIPTION
Nonrefundable credit with similar definitions as federal for Qualified Research Expenses and Qualified Research Activities except only include Illinois-based expenses.
PERCENTAGE
6.5% on incremental expenses over the average of the three prior years.
STATE
Georgia
Not an opportunity for
Georgia
NAME
Research and Development Tax Credit
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
Yes
DESCRIPTION
Nonrefundable credit with similar definitions as federal for Qualified Research Expenses and Qualified Research Activities except only include Georgia based expenses.
PERCENTAGE
10% on incremental expenses over base amount.
STATE
Delaware
Not an opportunity for
Delaware
NAME
Delaware Research and Development Tax Credit
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
Yes
DESCRIPTION
Nonrefundable credit with similar definition to federal for Qualified Research Expenses and Qualified Research Activities, except only include Delaware-based expenses. Two calculation methods.
PERCENTAGE
10% on incremental expenses over the base amount similar to the federal regular method. 50% on federal R&D credit apportioned to Delaware for smaller taxpayers.
STATE
Colorado
Not an opportunity for
Colorado
NAME
Research and Development Income Tax Credit for Enterprise Zones
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
Yes
DESCRIPTION
Nonrefundable credit with similar definition to federal for Qualified Research Expenses and Qualified Research Activities, except only include Colorado-based expenses.
PERCENTAGE
3% on incremental expenses over base amount similar to federal ASC.
STATE
California
Not an opportunity for
California
NAME
California Research Credit
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
YES
DESCRIPTION
Nonrefundable credit with similar definition to federal for Qualified Research Expenses and Qualified Research Activities, except only include California-based expenses. Credit follows federal regular credit method, also has an Alternative Incremental Research Credit (AIRC) method.
PERCENTAGE
15% on incremental expenses over the base amount
STATE
Arkansas
Not an opportunity for
Arkansas
NAME
In-House Research Income Tax Credit
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
This credit is available to C Corporations, S Corporations, LLCs, and Partnerships
DESCRIPTION
Nonrefundable credit with similar definition to federal for Qualified Research Expenses and Qualified Research Activities, except only include Arkansas-based expenses. Credit is incremental.
PERCENTAGE
20% (33% for Targeted Business) on incremental expenses over base amount. The base amount is the prior year’s QREs.
STATE
Arizona
Not an opportunity for
Arizona
NAME
Credit for Increased Research Activities
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
This credit is available to corporate taxpayers, corporate partners, exempt organizations subject to corporate income tax on unrelated business taxable income (UBTI), or S corporation shareholders.
DESCRIPTION
Nonrefundable credit with similar definition to federal for Qualified Research Expenses and Qualified Research Activities, except only include Arizona-based expenses. Credit follows federal regular credit computation and requires a base computation.
PERCENTAGE
Credit percentage: 24% on incremental expenses over base amount if taxpayer has $2.5MM or less in qualified QREs, 15% if over.
STATE
Oregon
Not an opportunity for
Oregon
NAME
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
DESCRIPTION
PERCENTAGE
STATE
Wyoming
Not an opportunity for
Wyoming
NAME
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
DESCRIPTION
PERCENTAGE
STATE
Texas
Not an opportunity for
Texas
NAME
Texas Research Credit
DOES IT APPLY TO C-CORPS & PASS THROUGHS?
YES
DESCRIPTION
The Texas Research and Development (R&D) Tax Credit is a tax incentive designed for businesses involved in qualified research activities within the state. Introduced in 2014, its aim is to foster economic growth in Texas, particularly in the research and development sectors, by providing incentives.
PERCENTAGE