How can your business maximize State R&D Tax Credits across the U.S.?
A majority of states offer an R&D tax credit. State R&D tax credits can be taken in conjunction with or independently from the federal R&D tax credit. Each state has a different set of requirements and filing deadlines, but our team has an expertise in all states and will help your company maximize your R&D credits in all applicable states.
Alabama
R&D Tax Credits
Next state
- Credits Rate 20% of qualified expenses
- Refundable / Saleable No
- Unused credits Carryforward 15 years
- Special Considerations Only applies to income tax
Alaska
R&D Tax Credits
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- Credits Rate No
- Refundable / Saleable Stat R&D credit
- Unused credits No
- Special Considerations N/A
Arizona
R&D Tax Credits
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- Credits Rate 24% up to $2.5M, 15% above
- Refundable / Saleable Yes (small businesses)
- Unused credits Carryforward 15 years
- Special Considerations Pre-approval required
Arkansas
R&D Tax Credits
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- Credits Rate 33% for in-house, 50% for university research
- Refundable / Saleable No
- Unused credits Carryforward 9 years
- Special Considerations Only for approved research centers
California
R&D Tax Credits
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- Credits Rate 15% (Regular); 3% (ASC)
- Refundable / Saleable No
- Unused credits Indefinite carryforward
- Special Considerations ASC available for 2025+ tax years; AIC applies to prior years
Colorado
R&D Tax Credits
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- Credits Rate 3% of qualified expenses
- Refundable / Saleable No
- Unused credits Carryforward 4 years
- Special Considerations Only for enterprise zones
Connecticut
R&D Tax Credits
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- Credits Rate 20% or 6% depending on credit type pursued
- Refundable / Saleable Partially refundable
- Unused credits Carry forward up to 15 years depending on credit type pursued
- Special Considerations Two credit types starting with tax year 2026. One for C corporations and one for S Corporations & Partnerships with less than $70 million in gross income.
Delaware
R&D Tax Credits
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- Credits Rate 10% or 50% of federal ASC
- Refundable / Saleable Yes
- Unused credits N/A
- Special Considerations Small businesses get double credit
Florida
R&D Tax Credits
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- Credits Rate Based on federal ASC method
- Refundable / Saleable No
- Unused credits N/A
- Special Considerations Only for target industries; $9M cap
Georgia
R&D Tax Credits
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- Credits Rate 10% of excess over base amount
- Refundable / Saleable No
- Unused credits Carryforward 10 years
- Special Considerations Only applies to income tax
Hawaii
R&D Tax Credits
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- Credits Rate 20% of qualified expenses
- Refundable / Saleable No
- Unused credits Carryforward 5 years
- Special Considerations Only for high-tech industries
Idaho
R&D Tax Credits
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- Credits Rate 5% of qualified expenses
- Refundable / Saleable No
- Unused credits Carryforward 14 years
- Special Considerations Only applies to income tax
Illinois
R&D Tax Credits
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- Credits Rate 6.5% of qualified expenses
- Refundable / Saleable No
- Unused credits Carryforward 5 years
- Special Considerations Follows federal rules closely.
Indiana
R&D Tax Credits
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- Credits Rate 15% of incremental expenses
- Refundable / Saleable No
- Unused credits Carryforward 10 years
- Special Considerations ASC method allowed
Iowa
R&D Tax Credits
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- Credits Rate 6.5% of incremental expenses
- Refundable / Saleable No
- Unused credits Carryforward 7 years
- Special Considerations Refundable for small businesses
Kansas
R&D Tax Credits
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- Credits Rate 10% of qualified expenses
- Refundable / Saleable No
- Unused credits Carryforward indefinitely (in 25% increments)
- Special Considerations Transferable; open to all Kansas income taxpayers; limited annually to 25% of the total credit generated plus any carryforward
Kentucky
R&D Tax Credits
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- Credits Rate 5% of qualified expenses
- Refundable / Saleable No
- Unused credits Carryforward 10 years
- Special Considerations Only for approved projects
Louisiana
R&D Tax Credits
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- Credits Rate 30% of qualified expenses
- Refundable / Saleable Yes
- Unused credits Carryforward 10 years
- Special Considerations Refundable for small businesses
Maine
R&D Tax Credits
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- Credits Rate 5% of qualified expenses
- Refundable / Saleable No
- Unused credits Carryforward 15 years
- Special Considerations Only for C corps
Maryland
R&D Tax Credits
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- Credits Rate 10% of QREs exceeding the MD base amount
- Refundable / Saleable Refundable for qualified small businesses
- Unused credits Carryforward 7 years
- Special Considerations Commerce application required by November 15 of the following year; $250K applicant cap
Massachusetts
R&D Tax Credits
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- Credits Rate 10% of incremental expenses
- Refundable / Saleable No
- Unused credits Carryforward 15 years
- Special Considerations Only for c corps
Michigan
R&D Tax Credits
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- Credits Rate 15% (under 250 employees) or 10% (250+ employees) above base amount; 3% up to base amount
- Refundable / Saleable Yes
- Unused credits Refundable
- Special Considerations Credit available starting in 2025
Minessota
R&D Tax Credits
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- Credits Rate 10% of first $2M, 4% above
- Refundable / Saleable No
- Unused credits Carryforward 15 years
- Special Considerations Only for C corps
Mississippi
R&D Tax Credits
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- Credits Rate 20% of qualified expenses
- Refundable / Saleable No
- Unused credits Carryforward 10 years
- Special Considerations Only for approved projects
Missouri
R&D Tax Credits
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- Credits Rate 6.5% of qualified expenses
- Refundable / Saleable No
- Unused credits Carryforward 5 years
- Special Considerations Only for C corps
Montana
R&D Tax Credits
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- Credits Rate 5% of qualified expenses
- Refundable / Saleable No
- Unused credits Carryforward 15 years
- Special Considerations Only for C corps
Nebraska
R&D Tax Credits
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- Credits Rate 15% of incremental expenses
- Refundable / Saleable No
- Unused credits Carryforward 5 years
- Special Considerations Only for C corps
Nevada
R&D Tax Credits
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- Credits Rate No state R&D credit
- Refundable / Saleable No
- Unused credits N/A
- Special Considerations N/A
New Hampshire
R&D Tax Credits
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- Credits Rate No state R&D credit
- Refundable / Saleable No
- Unused credits N/A
- Special Considerations N/A
New Jersey
R&D Tax Credits
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- Credits Rate 10%
- Refundable / Saleable No
- Unused credits Carry forward up to 7 years, or 15 years if a priority industry
- Special Considerations Must claim federal R&D credit and use same base methodology. Restrictions on use by S corporations and Partnerships.
New Mexico
R&D Tax Credits
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- Credits Rate 5% of qualified expenses
- Refundable / Saleable Yes
- Unused credits Carryforward 3 years
- Special Considerations Refundable for small businesses
New York
R&D Tax Credits
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- Credits Rate 6% (Excelsior), 15 20% (Life Sciences)
- Refundable / Saleable Yes
- Unused credits Carryforward 3 years
- Special Considerations Must be part of Excelsior or Life Sciences program
North Carolina
R&D Tax Credits
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- Credits Rate 3.25% of qualified expenses
- Refundable / Saleable No
- Unused credits Carryforward 15 years
- Special Considerations Only for C corps
North Dakota
R&D Tax Credits
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- Credits Rate 25% of first $100K, 20% above
- Refundable / Saleable No
- Unused credits Carryforward 15 years
- Special Considerations Only for C corps
Ohio
R&D Tax Credits
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- Credits Rate 7% of qualified expenses
- Refundable / Saleable No
- Unused credits Carryforward 7 years
- Special Considerations Only for C corps
Oklahoma
R&D Tax Credits
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- Credits Rate 20% of qualified expenses
- Refundable / Saleable Yes
- Unused credits Carryforward 20 years
- Special Considerations Refundable for small businesses
Oregon
R&D Tax Credits
Next state
- Credits Rate 5% of qualified expenses
- Refundable / Saleable No
- Unused credits Carryforward 5 years
- Special Considerations Only for C corps
Pennsylvania
R&D Tax Credits
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- Credits Rate 10% for businesses with assets > $5 million, 20% for businesses with assets < $5 million
- Refundable / Saleable Yes
- Unused credits Carryforward up to 15 years
- Special Considerations Application due December 1 on an annual basis via myPath.
Rhode Island
R&D Tax Credits
Next state
- Credits Rate 22.5% of first $25K, 16.9% above
- Refundable / Saleable No
- Unused credits Carryforward 7 years
- Special Considerations Only for C corps
South Carolina
R&D Tax Credits
Next state
- Credits Rate 5% of qualified expenses
- Refundable / Saleable No
- Unused credits Carryforward 10 years
- Special Considerations Only for C corps
South Dakota
R&D Tax Credits
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- Credits Rate No state R&D credit
- Refundable / Saleable No
- Unused credits N/A
- Special Considerations N/A
Tennessee
R&D Tax Credits
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- Credits Rate No state R&D credit
- Refundable / Saleable No
- Unused credits N/A
- Special Considerations N/A
Texas
R&D Tax Credits
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- Credits Rate 8.722%; or 10.903% if contracted with one or more public or private institutions of higher education for the performance of qualified research.
- Refundable / Saleable Yes, but only for the following: entities below the "no tax due" threshold ($2.65 million), if the taxable entity is a qualified new veteran-owned business, or if the taxable entity owes zero franchise tax because the tax computed for the entity is less than $1,000.
- Unused credits Carryforward 20 years
- Special Considerations Applies only to franchise tax; due on or before November 15 of the report year if filing for refundable credit.
Utah
R&D Tax Credits
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- Credits Rate 6% of qualified expenses
- Refundable / Saleable No
- Unused credits Carryforward 15 years
- Special Considerations Only for C corps
Vermont
R&D Tax Credits
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- Credits Rate 27% of federal credit
- Refundable / Saleable No
- Unused credits Carryforward 10 years
- Special Considerations Only for C corps
Virginia
R&D Tax Credits
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- Credits Rate 15% of first $300K, 20% above
- Refundable / Saleable No
- Unused credits Carryforward 10 years
- Special Considerations Only for C corps
Washington
R&D Tax Credits
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- Credits Rate No
- Refundable / Saleable state R&D credit
- Unused credits No
- Special Considerations N/A
West Virginia
R&D Tax Credits
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- Credits Rate 10% of qualified expenses
- Refundable / Saleable No
- Unused credits Carryforward 10 years
- Special Considerations Only for C corps
Wisconsin
R&D Tax Credits
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- Credits Rate 5.75% of qualified expenses
- Refundable / Saleable Yes, 25% of unused credits
- Unused credits Carryforward 50 years
- Special Considerations Project time tracking required
Wyoming
R&D Tax Credits
Next state
- Credits Rate No
- Refundable / Saleable state R&D credit
- Unused credits No
- Special Considerations N/A
Do you have any questions? We have the answers.
Discover our solutions to benefit tax credits and incentives
With our team of local experts, EPSA USA is focused on helping companies of all sizes take advantage of the Research and Development Tax Credit at both the federal and state level.
Our technical and legal experts follow IRS guidelines to identify qualified research expenses that dictate eligibility.
We work hand-in-hand with CPAs, clients, and partners to offer tailored solutions to identify R&D Tax Credits. Our streamlined process is efficient, fast, and guaranteed to optimize tax benefits for a variety of industries.