Select your state to find out if you
qualify for a State R&D Tax Credit

State
Abbreviation
Do they have an R&D Credit?
Brief Descriptions
Alabama

AL

No

This state does not offer any R&D Tax Credits, therefore Companies completing work within this state are only eligible for the Federal R&D Tax Credit.

State: Alabama

(AL)
Do they have an R&D Credit?
No
Description

This state does not offer any R&D Tax Credits, therefore Companies completing work within this state are only eligible for the Federal R&D Tax Credit.

Alaska

AK

Yes

Alaska provides a state tax credit equal to eighteen percent (18%) of a company’s federal-based credits, which includes the research and development tax credit as one. This credit provides a dollar-for-dollar offset against Alaska tax liabilities. To claim the credit, a company must file Alaska Form 6390 – Alaska Federal-based Credits along with its state tax return.

State: Alaska

(AK)
Do they have an R&D Credit?
Yes
Description

Alaska provides a state tax credit equal to eighteen percent (18%) of a company’s federal-based credits, which includes the research and development tax credit as one. This credit provides a dollar-for-dollar offset against Alaska tax liabilities. To claim the credit, a company must file Alaska Form 6390 – Alaska Federal-based Credits along with its state tax return.

Arizona

AZ

Yes

Arizona offers a refundable and non-refundable research tax credit. The credit is equal to $2.5 Million of QREs and 15% of the QREs in excess of $2.5 Million.

To qualify to receive the refundable portion of excess credit: Company must have less than 150 full-time employees and must apply to the ACA and receive a Certificate of Qualification.

State: Arizona

(AZ)
Do they have an R&D Credit?
Yes
Description

Arizona offers a refundable and non-refundable research tax credit. The credit is equal to $2.5 Million of QREs and 15% of the QREs in excess of $2.5 Million.

To qualify to receive the refundable portion of excess credit: Company must have less than 150 full-time employees and must apply to the ACA and receive a Certificate of Qualification.

Arkansas

AR

Yes

Arkansas offers a non-refundable R&D Tax Credit equal to 20% of QREs in excess of base year QREs. There are additional credits available if companies do development work in strategic areas, if research is university based, or if applied for as a strategic business.

State: Arkansas

(AR)
Do they have an R&D Credit?
Yes
Description

Arkansas offers a non-refundable R&D Tax Credit equal to 20% of QREs in excess of base year QREs. There are additional credits available if companies do development work in strategic areas, if research is university based, or if applied for as a strategic business.

California

CA

Yes

California has a permanent R&D Tax Credit that is calculated similar to the Federal R&D Tax Credit’s regular method. The percentage is equal to 15% of QREs over the base amount and has an indefinite carry forward.

State: California

(CA)
Do they have an R&D Credit?
Yes
Description

California has a permanent R&D Tax Credit that is calculated similar to the Federal R&D Tax Credit’s regular method. The percentage is equal to 15% of QREs over the base amount and has an indefinite carry forward.

Colorado

CO

Yes

Colorado has a credit available to taxpayers equal to 3% of of QREs over a two year base amount for companies that perform work within their Enterprize Zone

State: Colorado

(CO)
Do they have an R&D Credit?
Yes
Description

Colorado has a credit available to taxpayers equal to 3% of of QREs over a two year base amount for companies that perform work within their Enterprize Zone

Connecticut

CT

Yes

Connecticut has an R&D Credit available only for C-Corporations. There are two credits available: First: The Increments Credit – Equal to 20% of incremental development and partially refundable. Second: The Non-Incremental Credit equal to 6% of the current years R&D Tax Credits (depending on the number of employees and gross receipts)

State: Connecticut

(CT)
Do they have an R&D Credit?
Yes
Description

Connecticut has an R&D Credit available only for C-Corporations. There are two credits available: First: The Increments Credit – Equal to 20% of incremental development and partially refundable. Second: The Non-Incremental Credit equal to 6% of the current years R&D Tax Credits (depending on the number of employees and gross receipts)

Delaware

DE

Yes

Delaware has multiple calculation methods available and must submit an application by September 15th. There is a statewide cap of $5 Million per year in R&D available.

State: Delaware

(DE)
Do they have an R&D Credit?
Yes
Description

Delaware has multiple calculation methods available and must submit an application by September 15th. There is a statewide cap of $5 Million per year in R&D available.

Florida

FL

Yes

Florida offers a tax credit for C-Corporations in targeted industries such as Clean Energy, Life Sciences, Information Technology, Homeland Defense, Financial Services, Emerging Technologies, and Other Manufacturing. The Credit is equal to 10% of Qualified Expenditures over a computed base amount, is limited to 50% of the state tax liability, and has a 23 Million Dollar Cap for all state credits.

State: Florida

(FL)
Do they have an R&D Credit?
Yes
Description

Florida offers a tax credit for C-Corporations in targeted industries such as Clean Energy, Life Sciences, Information Technology, Homeland Defense, Financial Services, Emerging Technologies, and Other Manufacturing. The Credit is equal to 10% of Qualified Expenditures over a computed base amount, is limited to 50% of the state tax liability, and has a 23 Million Dollar Cap for all state credits.

Georgia

GA

Yes

Georgia offers an R&D Tax Credit that is one of the best in the country due to its ability to be used against state income tax or against Georgia Payroll Tax. The credit is calculated as 10% over the requisite base amount. Of note, if claiming against payroll in Georgia, form ITWH must be filed within 30 days after the due date of the return and filed electronically through the Georgia Tax Center.

State: Georgia

(GA)
Do they have an R&D Credit?
Yes
Description

Georgia offers an R&D Tax Credit that is one of the best in the country due to its ability to be used against state income tax or against Georgia Payroll Tax. The credit is calculated as 10% over the requisite base amount. Of note, if claiming against payroll in Georgia, form ITWH must be filed within 30 days after the due date of the return and filed electronically through the Georgia Tax Center.

Hawaii

HI

Yes

Hawaii offers a tax credit for qualified high technology businesses within the following 12 months of the tax year in which expenditures were incurred. Note that the credit is refundable and equates to approximately 10% of qualifying expenditures.

State: Hawaii

(HI)
Do they have an R&D Credit?
Yes
Description

Hawaii offers a tax credit for qualified high technology businesses within the following 12 months of the tax year in which expenditures were incurred. Note that the credit is refundable and equates to approximately 10% of qualifying expenditures.

Idaho

ID

Yes

Idaho offers a tax credit of 5% of current year expenditures over a computed base amount and is available for credit carryforward of 14 years.

State: Idaho

(ID)
Do they have an R&D Credit?
Yes
Description

Idaho offers a tax credit of 5% of current year expenditures over a computed base amount and is available for credit carryforward of 14 years.

Illinois

IL

Yes

Illinois offers a non-refundable tax credit in the amount of 6.5% of qualifying expenditures over a computed base amount. Unused credits are available for the carryforward of 5 years.

State: Illinois

(IL)
Do they have an R&D Credit?
Yes
Description

Illinois offers a non-refundable tax credit in the amount of 6.5% of qualifying expenditures over a computed base amount. Unused credits are available for the carryforward of 5 years.

Indiana

IN

Yes

Under Indiana code 6-3.1-4.1, Indiana offers an R&D Tax Credit on 15% on expenditures over a computed base amount of up to $1Million. The credit is 10% of amounts over excess of $1Million. Unused credits can be carried forward for up to 10 years.

State: Indiana

(IN)
Do they have an R&D Credit?
Yes
Description

Under Indiana code 6-3.1-4.1, Indiana offers an R&D Tax Credit on 15% on expenditures over a computed base amount of up to $1Million. The credit is 10% of amounts over excess of $1Million. Unused credits can be carried forward for up to 10 years.

Iowa

IA

Yes

Iowa offers a great benefit as a fully refundable tax credit and is 6.5% of qualifying expenditures over the computed base amount. Iowa does offer an alternative method to compute the tax credit at 4.55% of expenditures. One thing to note with Iowa is the ability to receive additional credits through Iowa’s Economic Development Authority if in the Enterprize Zone Program of a High-Quality Jobs program. The supplemental credit can provide an additional 10% of qualified expenses.

State: Iowa

(IA)
Do they have an R&D Credit?
Yes
Description

Iowa offers a great benefit as a fully refundable tax credit and is 6.5% of qualifying expenditures over the computed base amount. Iowa does offer an alternative method to compute the tax credit at 4.55% of expenditures. One thing to note with Iowa is the ability to receive additional credits through Iowa’s Economic Development Authority if in the Enterprize Zone Program of a High-Quality Jobs program. The supplemental credit can provide an additional 10% of qualified expenses.

Lousiana

LA

Yes

Lousiana offers a tiered tax credit for companies completing qualified work. The credit is computed as 40% for companies that employ up to 50 Louisiana residents,
20% for companies that employ 50-99 employee, and 8% for companies with 100 or more employees. Prior to claiming the R&D Tax Credits, a company must apply for and obtain a credit certification from the Department of Economic Development. The application requires a $250 fee.

State: Lousiana

(LA)
Do they have an R&D Credit?
Yes
Description

Lousiana offers a tiered tax credit for companies completing qualified work. The credit is computed as 40% for companies that employ up to 50 Louisiana residents,
20% for companies that employ 50-99 employee, and 8% for companies with 100 or more employees. Prior to claiming the R&D Tax Credits, a company must apply for and obtain a credit certification from the Department of Economic Development. The application requires a $250 fee.

Maine

ME

Yes

Maine offers two credits in a Regular and Super credit. The regular credit is computed as 5% of the current year expenditures over a computed base amount. The super credit expired in 2014.

State: Maine

(ME)
Do they have an R&D Credit?
Yes
Description

Maine offers two credits in a Regular and Super credit. The regular credit is computed as 5% of the current year expenditures over a computed base amount. The super credit expired in 2014.

Maryland

MD

Yes

Maryland offers a basic and growth R&D Tax Credit to facilitate growth within the state. The credits each require an application by September 15th for expenses incurred in the previous calendar year.

State: Maryland

(MD)
Do they have an R&D Credit?
Yes
Description

Maryland offers a basic and growth R&D Tax Credit to facilitate growth within the state. The credits each require an application by September 15th for expenses incurred in the previous calendar year.

Massachusetts

MA

Yes

The state of Massachusetts maintains a tax credit for 10% of incremental qualified R&D Expenditure. The credits however are limited to reducing the tax liability below $456 and only 75% of any excise tax due in excess of $25,000. Credits in excess of the taxpayer’s liability may be carried over for 15 years. Credits disallowed because of the 75% rule may be carried over indefinitely.

State: Massachusetts

(MA)
Do they have an R&D Credit?
Yes
Description

The state of Massachusetts maintains a tax credit for 10% of incremental qualified R&D Expenditure. The credits however are limited to reducing the tax liability below $456 and only 75% of any excise tax due in excess of $25,000. Credits in excess of the taxpayer’s liability may be carried over for 15 years. Credits disallowed because of the 75% rule may be carried over indefinitely.

Michigan

MI

No

This state does not offer any R&D Tax Credits, therefore Companies completing work within this state are only eligible for the Federal R&D Tax Credit.

State: Michigan

(MI)
Do they have an R&D Credit?
No
Description

This state does not offer any R&D Tax Credits, therefore Companies completing work within this state are only eligible for the Federal R&D Tax Credit.

Minnesota

MN

Yes

Minnesota offers a credit equal to 10% of the qualifying expenses up to $2 Million and 2.5% for expenses above $2 Million. The credit is available for partnerships and corporations and is available to be carried forward for up to 15 years.

State: Minnesota

(MN)
Do they have an R&D Credit?
Yes
Description

Minnesota offers a credit equal to 10% of the qualifying expenses up to $2 Million and 2.5% for expenses above $2 Million. The credit is available for partnerships and corporations and is available to be carried forward for up to 15 years.

Mississippi

MS

No

This state does not offer any R&D Tax Credits, therefore Companies completing work within this state are only eligible for the Federal R&D Tax Credit.

State: Mississippi

(MS)
Do they have an R&D Credit?
No
Description

This state does not offer any R&D Tax Credits, therefore Companies completing work within this state are only eligible for the Federal R&D Tax Credit.

Missouri

MO

No

This state does not offer any R&D Tax Credits, therefore Companies completing work within this state are only eligible for the Federal R&D Tax Credit.

State: Missouri

(MO)
Do they have an R&D Credit?
No
Description

This state does not offer any R&D Tax Credits, therefore Companies completing work within this state are only eligible for the Federal R&D Tax Credit.

Montana

MT

No

This state does not offer any R&D Tax Credits, therefore Companies completing work within this state are only eligible for the Federal R&D Tax Credit.

State: Montana

(MT)
Do they have an R&D Credit?
No
Description

This state does not offer any R&D Tax Credits, therefore Companies completing work within this state are only eligible for the Federal R&D Tax Credit.

Nebraska

NE

Yes

Nebraska offers a tax credit of up to 15% of the federal tax credit allowed and prorated to costs incurred within the state of Nebraska. Research Credits are available offset sales tax, income tax, or refundable. The tax credits can be claimed annually for up to 20 years.

State: Nebraska

(NE)
Do they have an R&D Credit?
Yes
Description

Nebraska offers a tax credit of up to 15% of the federal tax credit allowed and prorated to costs incurred within the state of Nebraska. Research Credits are available offset sales tax, income tax, or refundable. The tax credits can be claimed annually for up to 20 years.

Nevada

NV

No

This state does not offer any R&D Tax Credits, therefore Companies completing work within this state are only eligible for the Federal R&D Tax Credit.

State: Nevada

(NV)
Do they have an R&D Credit?
No
Description

This state does not offer any R&D Tax Credits, therefore Companies completing work within this state are only eligible for the Federal R&D Tax Credit.

New Hampshire

NH

Yes

New Hampshire offers an R&D Tax Credit for manufacturing expenditures incurred within the state. The credit is the lesser of 10% of expenses incurred or $50,000. The state caps aggregate claims to $2 Million. The Credit application (Form DP165) must be submitted to NH DRA and postmarked no later than June 30 following the tax year during which the research and development occurred. The application should be submitted along with Federal Form 6765.

State: New Hampshire

(NH)
Do they have an R&D Credit?
Yes
Description

New Hampshire offers an R&D Tax Credit for manufacturing expenditures incurred within the state. The credit is the lesser of 10% of expenses incurred or $50,000. The state caps aggregate claims to $2 Million. The Credit application (Form DP165) must be submitted to NH DRA and postmarked no later than June 30 following the tax year during which the research and development occurred. The application should be submitted along with Federal Form 6765.

New Jersey

NJ

Yes

The New Jersey R&D Tax Credit is available to S and C Corporations, but not partnerships. The credit is unable to be passed through to shareholders. Credits are computed as 10% of qualified expenditures over a computed base amount and unused credits can be carried forward for up to 7 years (with some fields allowing carry forward of up to 15 years.)

State: New Jersey

(NJ)
Do they have an R&D Credit?
Yes
Description

The New Jersey R&D Tax Credit is available to S and C Corporations, but not partnerships. The credit is unable to be passed through to shareholders. Credits are computed as 10% of qualified expenditures over a computed base amount and unused credits can be carried forward for up to 7 years (with some fields allowing carry forward of up to 15 years.)

New Mexico

NM

Yes

New Mexico offers two tax credits in which the claiming business may choose either the Small Business R&D Tax Credit or Technology Jobs and Research Credit. The Small Business Credit is equal to the sum of all gross receipts taxes and 50% of withholding taxes paid on behalf of employees and owners with no more than five percent ownership, that are due to the state. Wherein the Technology Jobs credit is equal to 5% (10% if rural) of qualified expenditures and an additional 5% (10% if rural) of expenditures if certain payroll increase benchmarks are met.

State: New Mexico

(NM)
Do they have an R&D Credit?
Yes
Description

New Mexico offers two tax credits in which the claiming business may choose either the Small Business R&D Tax Credit or Technology Jobs and Research Credit. The Small Business Credit is equal to the sum of all gross receipts taxes and 50% of withholding taxes paid on behalf of employees and owners with no more than five percent ownership, that are due to the state. Wherein the Technology Jobs credit is equal to 5% (10% if rural) of qualified expenditures and an additional 5% (10% if rural) of expenditures if certain payroll increase benchmarks are met.

New York

NY

Yes

New York offers an R&D Tax Credit of 3% of the federal R&D Tax Credit and available for companies in strategic industries who were creating new jobs. Credits are required to be applied for through the Empire State Development office.

State: New York

(NY)
Do they have an R&D Credit?
Yes
Description

New York offers an R&D Tax Credit of 3% of the federal R&D Tax Credit and available for companies in strategic industries who were creating new jobs. Credits are required to be applied for through the Empire State Development office.

North Carolina

NC

No

This state does not offer any R&D Tax Credits, therefore Companies completing work within this state are only eligible for the Federal R&D Tax Credit.

State: North Carolina

(NC)
Do they have an R&D Credit?
No
Description

This state does not offer any R&D Tax Credits, therefore Companies completing work within this state are only eligible for the Federal R&D Tax Credit.

North Dakota

ND

Yes

North Dakota offers an R&D Tax Credit of 25% of the first $100,000 and 8% of expenses over $100,000 over the computed base amount. Credits are able to be carried forward for 15 years and able to be sold, transferred, or assigned IF the taxpayer registers as a qualified research and development Company.

State: North Dakota

(ND)
Do they have an R&D Credit?
Yes
Description

North Dakota offers an R&D Tax Credit of 25% of the first $100,000 and 8% of expenses over $100,000 over the computed base amount. Credits are able to be carried forward for 15 years and able to be sold, transferred, or assigned IF the taxpayer registers as a qualified research and development Company.

Ohio

OH

Yes

Ohio offers an R&D Tax Credit against the Commercial Activity (CAT) Tax. Ohio’s credit is computed as 7% of qualifying expenses over a base amount and can be carried forward for up to 7 years.

State: Ohio

(OH)
Do they have an R&D Credit?
Yes
Description

Ohio offers an R&D Tax Credit against the Commercial Activity (CAT) Tax. Ohio’s credit is computed as 7% of qualifying expenses over a base amount and can be carried forward for up to 7 years.

Oklahoma

OK

No

This state does not offer any R&D Tax Credits, therefore Companies completing work within this state are only eligible for the Federal R&D Tax Credit.

State: Oklahoma

(OK)
Do they have an R&D Credit?
No
Description

This state does not offer any R&D Tax Credits, therefore Companies completing work within this state are only eligible for the Federal R&D Tax Credit.

Oregon

OR

No

This state does not offer any R&D Tax Credits, therefore Companies completing work within this state are only eligible for the Federal R&D Tax Credit.

State: Oregon

(OR)
Do they have an R&D Credit?
No
Description

This state does not offer any R&D Tax Credits, therefore Companies completing work within this state are only eligible for the Federal R&D Tax Credit.

Pennsylvania

PA

Yes

Pennsylvania offers an R&D Tax Credit that must be applied for to the Department of Revenue by September 15th of the year following the year in which expenses were incurred. The credit is computed as 10% (20% for qualified small businesses) of expenses that exceed the computed base amount.

State: Pennsylvania

(PA)
Do they have an R&D Credit?
Yes
Description

Pennsylvania offers an R&D Tax Credit that must be applied for to the Department of Revenue by September 15th of the year following the year in which expenses were incurred. The credit is computed as 10% (20% for qualified small businesses) of expenses that exceed the computed base amount.

Rhode Island

RI

Yes

Rhode Island offers an R&D Tax credit that can reduce the company’s tax liability by up to 50%. Credits are compuited as 22.5% of qualified expenditures up to $111,111 and 16.9% of expenditures over $111,111.

State: Rhode Island

(RI)
Do they have an R&D Credit?
Yes
Description

Rhode Island offers an R&D Tax credit that can reduce the company’s tax liability by up to 50%. Credits are compuited as 22.5% of qualified expenditures up to $111,111 and 16.9% of expenditures over $111,111.

South Carolina

SC

Yes

South Carolina offers an R&D Tax Credit of 5% of qualified expenditures over the computed base. Credits can reduce the tax liability of up to 50% of the company’s current-year tax liability. In addition, South Carolina allows a 10 year carry forward.

State: South Carolina

(SC)
Do they have an R&D Credit?
Yes
Description

South Carolina offers an R&D Tax Credit of 5% of qualified expenditures over the computed base. Credits can reduce the tax liability of up to 50% of the company’s current-year tax liability. In addition, South Carolina allows a 10 year carry forward.

South Dakota

SD

No

This state does not offer any R&D Tax Credits, therefore Companies completing work within this state are only eligible for the Federal R&D Tax Credit.

State: South Dakota

(SD)
Do they have an R&D Credit?
No
Description

This state does not offer any R&D Tax Credits, therefore Companies completing work within this state are only eligible for the Federal R&D Tax Credit.

Tennessee

TN

No

This state does not offer any R&D Tax Credits, therefore Companies completing work within this state are only eligible for the Federal R&D Tax Credit.

State: Tennessee

(TN)
Do they have an R&D Credit?
No
Description

This state does not offer any R&D Tax Credits, therefore Companies completing work within this state are only eligible for the Federal R&D Tax Credit.

Texas

TX

Yes

Texas offers an R&D Tax Credit of 5% of the qualified epxneses over the computed base amount. Texas’ R&D Tax Credit is used against the Franchise Tax and can be carried forward for up to 20 years.

State: Texas

(TX)
Do they have an R&D Credit?
Yes
Description

Texas offers an R&D Tax Credit of 5% of the qualified epxneses over the computed base amount. Texas’ R&D Tax Credit is used against the Franchise Tax and can be carried forward for up to 20 years.

Utah

UT

Yes

Utah offers one of the best opportunities for R&D in the country due to the access to two credits. The first credit is equal to 5% of expenditures over the computed base amount (able to be carried forward for 14 years) . The second credit is computed as 7.5% of expenses in the current year (No carry forward available).

State: Utah

(UT)
Do they have an R&D Credit?
Yes
Description

Utah offers one of the best opportunities for R&D in the country due to the access to two credits. The first credit is equal to 5% of expenditures over the computed base amount (able to be carried forward for 14 years) . The second credit is computed as 7.5% of expenses in the current year (No carry forward available).

Vermont

VT

Yes

Vermont offers an R&D Tax Credit of up to 27% of the federal credit with a 10 year carry forward.

State: Vermont

(VT)
Do they have an R&D Credit?
Yes
Description

Vermont offers an R&D Tax Credit of up to 27% of the federal credit with a 10 year carry forward.

Virginia

VA

Yes

Virginia offers an R&D Tax Credit of $7M for all companies to claim within the state. The computation is 15% of the first $300,000 of QREs. Note that Virginia requires an application submitted by September 1st of the year following the year in which expenses were incurred.

State: Virginia

(VA)
Do they have an R&D Credit?
Yes
Description

Virginia offers an R&D Tax Credit of $7M for all companies to claim within the state. The computation is 15% of the first $300,000 of QREs. Note that Virginia requires an application submitted by September 1st of the year following the year in which expenses were incurred.

Washington

WA

No

State: Washington

(WA)
Do they have an R&D Credit?
No
Description

This state does not offer any R&D Tax Credits, therefore Companies completing work within this state are only eligible for the Federal R&D Tax Credit.

West Virginia

WV

No

This state does not offer any R&D Tax Credits, therefore Companies completing work within this state are only eligible for the Federal R&D Tax Credit.

State: West Virginia

(WV)
Do they have an R&D Credit?
No
Description

This state does not offer any R&D Tax Credits, therefore Companies completing work within this state are only eligible for the Federal R&D Tax Credit.

Wisconsin

WI

Yes

Wisconsin offers an R&D Tax Credit of 5% of expenses incurred and over a computed base amount. However, the there is an additional 5% credit for companies designing internal combustion engines, or related to the design and manufacturing of energy-efficient lighting systems, building automation and control systems, or automotive batteries for use in hybrid-electric vehicles, that reduce the demands for natural gas or electricity or improve the efficiency of its use. Credits are able to be carried forward for15 years.

State: Wisconsin

(WI)
Do they have an R&D Credit?
Yes
Description

Wisconsin offers an R&D Tax Credit of 5% of expenses incurred and over a computed base amount. However, the there is an additional 5% credit for companies designing internal combustion engines, or related to the design and manufacturing of energy-efficient lighting systems, building automation and control systems, or automotive batteries for use in hybrid-electric vehicles, that reduce the demands for natural gas or electricity or improve the efficiency of its use. Credits are able to be carried forward for15 years.

Wyoming

WY

No

This state does not offer any R&D Tax Credits, therefore Companies completing work within this state are only eligible for the Federal R&D Tax Credit.

State: Wyoming

(WY)
Do they have an R&D Credit?
No
Description

This state does not offer any R&D Tax Credits, therefore Companies completing work within this state are only eligible for the Federal R&D Tax Credit.

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