R&D Tax Credits by State

	State	R&D Credit	Summary of Calculation	Refundability	Due Date	General Notes
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1	AK	Yes	18% of the amount of the federal credit apportioned to Alaska	Non-refundable	Due with Alaska return	20 year carryforward. Amendable.
2	AL	No
3	AR	Yes	33% of the qre's incurred each year for up to five years. (In-House R&D = 20% of QRES over base)	Non-refundable	Application must be filed prior to filing of Arkansas return	9 year carryforward. Transferable.
4	AZ	Yes	QREs <$2,500,000 = 24% credit. QREs >$2,500,000 = $600,000 credit plus 15% of amount exceeding $2,500,000.	Refundable portions	Due with Arizona return	15 year carryforward. Refundability has strict qualification guidelines.
5	CA	Yes	15% of QREs for business-based research and 24% of for university basic research	Non-refundable	Due with California return	Unlimited carryforward. Amendable.
6	CO	Yes	3% of QREs over base	Non-refundable	Due with Colorado return	Unlimited carryforward. Limited to qualified enterprise zone areas. Taxpayer must annually pre-certify.
7	CT	Yes	RC - 20% of incremental increase conducted in Connecticut. RDC - tiered, under $50m in QRES - 1%, increases as spend increases	Non-refundable	Due with Connecticut return	15 year carryforward. Transferable.
8	DC	No
9	DE	Yes	10% (20% for QSB) of QREs in excess of base amount OR 50% (100% for QSB) of DE's apportioned share of Fed ASC credit.	Refundable	Application due 9/15	15 year carryforward. Refund capped at 50% of taxpayer's liability. Can be carried forward 15 years.
10	FL	Yes	10% of QREs over base	Non-refundable	Applications due in March	5 year carryforward. Limited to 50% of FL corporate income tax liability after all other credits have been applied. Must be a qualified target industry business. Partnerships, LLCs, or disregarded single member LLCs may not apply, however, each corporate partner of a partnership may apply separately for an allocation of the credit.
11	GA	Yes	10% of QREs over base	Non-refundable	Due with Georgia return	10 year carryforward. Limited to 50% of the GA net income tax liability after all other credits have been applied. Excess R&D credit can be used to offset state payroll withholding
12	HI	Yes	20% of QREs over base in Hawaii.	Refundable	Application due March 31st	Difference between taxpayer's HI liability and credit applicable for tax year, difference is refunded to taxpayer. No carryforward. Use Form N-346 (Increasing R&D) and Form N-346A for QHTB. Deadline to claim, including amended claims, is 12 months after close of the taxable year. Fiscal year filers application is due before the day before the last day of the third month following the close of the fiscal year. Partnerships, LLCs, or disregarded single member LLCs may not apply, however, each corporate partner of a partnership may apply separately for an allocation of the credit.
13	IA	Yes	Can be calculated using regular or alternative simplified credit method. Regular credit is 6.5% of QREs over base plus 6.5% of QREs over base in Iowa, ASC is 4.55% of QREs over base plus 6.5% of QREs over base in Iowa. Base amount means the product of the fixed-based percentage multiplied by the average annual gross receipts of the taxpayer for the four taxable years preceding the taxable year for which the credit is being determined	Refundable	Due with Iowa return	No carryforward. Form IA 128 for regular. Form IA 128S for ASC.
14	ID	Yes	5% of QREs over base and 5% of basic research payments allowable under IRC41	Non-refundable	Due with Idaho return	14 year carryforward.
15	IL	Yes	6.5% of QREs over base	Non-refundable	Due with Illinois return	5 year carryforward.
16	IN	Yes	10% of QREs over base	Non-refundable	Due with Indiana return	10 year carryforward. Addt'l credit available for aerospace contractors.
17	KS	Yes	6.5 % of QREs over base.	Non-refundable	Due with Kansas return	Indefinite carryforward. Limited to 25% of the credit plus carry forwards. Only available to C-Corps after 2013.
18	KY	Yes	5% of the qualified cost for "construction of research facilities" for "qualified research" as defined in Internal Revenue Code Section 41.	Non-refundable	Due with Kentucky return	10 year carryforward. For qualified construction, remodeling, expanding and equipping facilities in Kentucky for qualified research. - additional sales and use tax refund possible
19	LA	Yes	5%-30% (according to no of employees) over base.	Non-refundable	Application	5 year carryforward. Prior to claiming credit, Company must apply to obtain a credit certification from Louisiana Economic Development (LED).
20	MA	Yes	10% of QREs over base and 15% of basic research payments as determined under IRC Section 41	Refundable portion	Due with Massachusetts return	15 year carryforward. The credit is limited to 100% of a corporation's first $25,000 of excise determined before the allowance of any credits, plus 75% of the corporation's excise in excess of $25,000. Refundable credit for Life Science. Additional credit for Life Science Research Credit
21	MD	Yes	3% of QREs for Basic credit, 10% of QREs over base for Growth credit	Refundable portion	Application must be submitted no later than November 15	20 year carryforward. Refundable portion if small business (net book value <$5m on balance sheet)
22	ME	Yes	5% of QREs over base and 7.5% of basic research payments under Section 41	Non-refundable	Due with Maine return	15 year carryforward. Limited to 100% of a corporation's first $25,000 of tax due, as determined before the allowance of any credits, plus 75% of the corporation's tax due, as determined in excess of $25,000.
23	MI	No
24	MN	Yes	10% of the first $2m of QREs over base, and 4% of expenses over $2m.	Non-refundable	Due with Minnesota return	15 year carryforward.
25	MO	No
26	MS	No
27	MT	No
28	NC	No
29	ND	Yes	25% of the first 100k over base, 8% for expenses over 100k. For 2019 and after, taxpayer could use an alternative simplified method to calculate the credit. Under this method, the credit is equal to 17.5% of the first $100,000 of North Dakota alternative excess expenses plus 5.6% of the amount in excess of $100,000.	Non-refundable	Due with North Dakota return	15 year carryforwrad. Limited transferability. Amendable.
30	NE	Yes	15% of the federal, 35% of fed credit if Nebraska R&D activities performed by university	Refundable	Due with Nebraska return	20 year carryforward. Amendable. The Taxpayer must electronically verify the work eligibility status of all employees hired in Nebraska during the tax year for which the credit is claimed.
31	NH	Yes	Lesser of $50,000 or 10% of QREs over base.	Non-refundable	Application due June 30	5 year carryforward. First applied to Business Profit Tax, remained may be applied against Business Enterprise Tax.
32	NJ	Yes	10% of QREs over base and 10% of basic research payments.	Non-refundable	Due with New Jersey return	7 year carryforward. Only available to C and S Corporations. Amendable.
33	NM	Yes	5% of QREs at qualified facility in NM or 10% if located in rural NM.	Partially refundable	Application must be submitted within one year following the end of the taxable year.	3 year carryforward. Varying limitations. A taxpayer is also entitled to an additional credit if annual payroll expenses increase by $75,000 over base payroll for every $1,000,000 in qualified expenditures claimed by the taxpayer in a tax year in the same claim. A small business with no more than 50 employees can be refunded if the approved amount exceeds the taxpayer’s income tax liability or corporate income tax liability. <3M, the excess will be refunded. Between 3M and 4M, two-thirds of the excess will be refunded. Between 4M and 5M, one-third of the excess will be refunded.
34	NV	No
35	NY	Yes	50% of the portion of the Federal Research and Development tax credit that relates to expenditures in NYS up to credit up to 3% of research expenditures attributable to activities conducted in NYS.	Refundable	Due with NY return	Must apply for certificate. For a qualified green project a credit of 50% of the portion of the Federal Research and Development tax credit that relates to expenditures in NYS up to 8% of research expenditures attributable to activities conducted in NYS.
36	OH	Yes	7% of QREs over base	Non-refundable	Due with Ohio return	7 year carryforward. No form - file with return due in Feb. Based on costs incurred in calendar year - not federal taxable year. Additional credit for "Research Loan Payment Credit", but must obtain a certificate from Ohio and meet other procedural requirements
37	OK	No
38	OR	No
39	PA	Yes	10% (large businesses) and 20% (small businesses) of QREs over base.	Non-refundable	Application due September 15	15 year carryforward. Transferable - must apply for approval to sell and assign. Small business is defined as company with NBV of assets less than $5m.
40	RI	Yes	5% of QREs over base	Non-refundable	Due with Rhode Island return	7 year carryforward. Limited usability.
41	SC	Yes	5% of QREs in SC	Non-refundable	Due with South Carolina return	10 year carryforward. Credit may not exceed 50% of the taxpayers tax liability remaining after all other credits are applied.
42	SD	No
43	TN	No
44	TX	Yes	5% of QREs over base	Non-refundable	Due with Texas return	20 year carryforwrad. Cannot exceed 50% of franchise tax due.
45	UT	Yes	5% of QREs over base and 7.5% retroactive of QREs in the current year	Non-refundable	Due with Utah return	14 year limited carryforward. Limited amendability.
46	VA	Yes	If QREs < 5M, 15% of the first $300,000 over base in VA QRES or 20% of the first $300,000 over base in VA QREs paid to VA university. If QREs > 5M, An income tax credit equal to 10% of the difference between this year’s qualifying expenses and 50% of the average amount of the qualifying expenses for the 3 previous years. If you didn’t have any qualifying expenses in at least 1 of the previous 3 years, the amount of credit equals 5% of the expenses paid this year.	Refundable portion	Application due September 1	10 year carryforward Use Form RDC (<5m) Form MRD (>5m). Additional schedules for Wages, Supplies, CR. Use form MRD if VA QREs > 5m, attachments required. Budgetary restrictions, 2 separate budgets depending on credit claimed.  If the amount of the credit allowed exceeds the taxpayer's tax liability for the taxable year, the amount that exceeds the tax liability is refunded to the taxpayer.
47	VT	Yes	27% of the federal tax credit	Non-refundable	Due with Vermont return	10 year carryforward.
48	WA	No
49	WI	Yes	5.75% of QREs over base	Refundable portion	Due with Wisconsin return	15 year carryforward. Limited refundability. Extra credit opportunities for combustion engines and energy efficient products
50	WV	No
51	WY	No
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