R&D Tax Credits in Utah

Can I Claim R&D Tax Credits in Utah?

Yes, you can claim R&D tax credits in Utah. The state offers a research and development tax credit program known as the Tax Credit for Research Activities in Utah (Code 12).


The Utah R&D Tax Credit offers taxpayers in Utah a valuable non-refundable tax credit when they have eligible research expenditures. It closely resembles the federal Section 41 Credit for Increasing Research activities, although with some minor deviations. This credit allows businesses and individuals engaged in research and development to potentially reduce their tax liability and incentivizes innovation and technological advancements within the state. By aligning with the federal framework while incorporating a few specific variations, the Utah R&D Tax Credit encourages local enterprises to invest in research, fostering growth, and contributing to the overall progress of Utah's economy.

What are the Potential Benefits of the Utah R&D Tax Credit?

The Utah R&D tax credits present a range of valuable benefits that can result in significant cost savings for qualifying companies. These advantages encompass:

  • Financial Incentives
  • Cost Recovery
  • Competitive Advantage
  • Long-Term Benefits


In credits claimed
Estimate My Credit

Who Can Claim the Utah R&D Tax Credit?

The Utah R&D Tax Credit extends its benefits to diverse entities meeting the necessary criteria. Eligible claimants include C-corporations, S-corporations, and LLCs treated as corporations for tax purposes. These entities must actively engage in qualified research activities within Utah. Additionally, partnerships and limited partnerships that satisfy the qualifying criteria for research endeavors in Utah may claim the credit. Nevertheless, it is important to note that the credit is typically distributed to individual partners in such cases, ensuring equitable allocation of the benefit among all stakeholders involved.

The Utah R&D tax credit aligns with the key drivers of growth in your business, as it recognizes and supports the following valuable activities:

  • Innovation in product development
  • Enhancement of existing products
  • Software development for internal or external purposes
  • Streamlining manufacturing processes

The activities that qualify for the Utah R&D tax credit are the same ones driving growth in your business.

Utah R&D Tax Credit Studies Completed


How Do I Claim the Utah R&D Tax Credit?

To claim the Utah R&D Tax Credit, you need to gather specific information, including Utah Qualified R&D Expenses (QREs) and Utah Gross Receipts. Calculate the credit amount by determining percentages of QREs for research activities and certain payments for basic research in Utah. Include the credit amount on Form TC-40A (Part 4) using code 12 when filing your Utah tax return, and keep all supporting documents. Remember to submit your tax return by the deadline. Excess credits can be carried forward for up to 14 years, except for credits based on current-year QREs.