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State R&D Credits
State R&D Credits
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
Next state
- 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
Next state
- Credits Rate 15% (incremental), 24% (basic research)
- Refundable / Saleable No
- Unused credits Indefinite carryforward
- Special Considerations Must use AIRC unless approved to switch
Colorado
R&D Tax Credits
Next state
- 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
Next state
- Credits Rate 20% of incremental expenses
- Refundable / Saleable Yes
- Unused credits Carryforward 15 years
- Special Considerations Refundable for small businesses
Delaware
R&D Tax Credits
Next state
- 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
Next state
- 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
Next state
- 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
Next state
- 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
Next state
- Credits Rate 6.5% of qualified expenses
- Refundable / Saleable No
- Unused credits Carryforward 5 years
- Special Considerations Only for C corps
Indiana
R&D Tax Credits
Next state
- Credits Rate 15% of incremental expenses
- Refundable / Saleable No
- Unused credits Carryforward 10 years
- Special Considerations ASC method allowed
Iowa
R&D Tax Credits
Next state
- 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
Next state
- Credits Rate 6.5% of qualified expenses
- Refundable / Saleable No
- Unused credits Carryforward 3 years
- Special Considerations Only for C corps
Kentucky
R&D Tax Credits
Next state
- 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
Next state
- 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
Next state
- 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
Next state
- Credits Rate 10% of incremental expenses
- Refundable / Saleable Yes
- Unused credits Carryforward 7 years
- Special Considerations Refundable for small businesses
Massachusetts
R&D Tax Credits
Next state
- 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
Next state
- Credits Rate 1.9% of qualified expenses
- Refundable / Saleable No
- Unused credits Carryforward 10 years
- Special Considerations Only for C corps
Minessota
R&D Tax Credits
Next state
- 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
Next state
- 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
Next state
- 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
Next state
- 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
Next state
- 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
Next state
- Credits Rate No state R&D credit
- Refundable / Saleable No
- Unused credits N/A
- Special Considerations N/A
New Hampshire
R&D Tax Credits
Next state
- Credits Rate No state R&D credit
- Refundable / Saleable No
- Unused credits N/A
- Special Considerations N/A
New Jersey
R&D Tax Credits
Next state
- Credits Rate 10% of incremental expenses
- Refundable / Saleable Yes
- Unused credits Carryforward 15 years
- Special Considerations Refundable for small businesses
New Mexico
R&D Tax Credits
Next state
- 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
Next state
- 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
Next state
- 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
Next state
- 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
Next state
- 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
Next state
- 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
Next state
- Credits Rate 10% of incremental expenses
- Refundable / Saleable Yes
- Unused credits Carryforward 15 years
- Special Considerations Refundable for small businesses
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
Next state
- Credits Rate No state R&D credit
- Refundable / Saleable No
- Unused credits N/A
- Special Considerations N/A
Tennessee
R&D Tax Credits
Next state
- Credits Rate No state R&D credit
- Refundable / Saleable No
- Unused credits N/A
- Special Considerations N/A
Texas
R&D Tax Credits
Next state
- Credits Rate 5% (incremental) or 6.25% (with university collaboration)
- Refundable / Saleable No
- Unused credits Carryforward 20 years
- Special Considerations Applies only to franchise tax; ASC method allowed
Utah
R&D Tax Credits
Next state
- 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
Next state
- 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
Next state
- 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
Next state
- Credits Rate No
- Refundable / Saleable state R&D credit
- Unused credits No
- Special Considerations N/A
West Virginia
R&D Tax Credits
Next state
- 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
Next state
- Credits Rate 5% of qualified expenses
- Refundable / Saleable Yes
- Unused credits Carryforward 15 years
- Special Considerations Refundable for small businesses
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.