R&D credit database

Federal and State Research Credit Programs, Side by Side

A structured reference covering the federal credit and 36 state programs — rates, refundability, carryforward, eligibility and official sources. Built to extend to new states and countries.

Showing 37 of 37 programs

Jurisdiction	Program	Headline Rate	Cash Benefit	Status
United States (Federal) US	Federal Research & Development Tax Credit (IRC Section 41) The nationwide credit for increasing research activities, available to companies of any size that improve products, processes, software or formulations in the United States.	20% regular method; 14% Alternative Simplified Credit	Offset Only	active Official Source
Arizona AZ	Arizona Credit for Increased Research Activities A two-tier state credit modeled on the federal research credit, with a partial refund available to small companies.	24% of the first $2.5M of excess QREs; 15% above that	Refundable	active Official Source
Arkansas AR	Arkansas In-House Research and Development Tax Credit Incentives for in-house research, university-partnered research and targeted-business research, administered through the Arkansas Economic Development Commission.	20% of qualified in-house research expenditure increases; 33% for university-based research	Offset Only	active Official Source
California CA	California Research and Development Credit A long-standing, permanent state credit that closely tracks IRC Section 41 but uses California-only expenses and a fixed base percentage.	15% of qualified expenses above base; 24% of basic research payments	Offset Only	active Official Source
Colorado CO	Colorado Enterprise Zone Research and Development Increase Tax Credit A geographically targeted credit for companies that increase research spending inside a designated Colorado Enterprise Zone.	3% of the increase in Enterprise Zone research spending	Offset Only	active Official Source
Connecticut CT	Connecticut Research and Experimental Expenditures Credit Two complementary credits: an incremental credit on increased research spending and a non-incremental credit on total research expenses.	20% incremental credit; 1% to 6% graduated non-incremental credit	Refundable	active Official Source
Delaware DE	Delaware Research and Development Tax Credit A refundable state credit that mirrors the federal calculation and pays cash to companies with no Delaware tax liability.	10% of the federal credit apportioned to Delaware; 20% for small businesses	Refundable	active Official Source
Florida FL	Florida Research and Development Tax Credit A capped, competitive credit reserved for corporations in targeted high-technology industries.	10% of qualified research expenses above the prior four-year average	Offset Only	active Official Source
Georgia GA	Georgia Research and Development Tax Credit A broadly available credit that can offset both income tax and, once exhausted, state payroll withholding.	10% of the increase in Georgia qualified research expenses	Offset Only	active Official Source
Hawaii HI	Hawaii Tax Credit for Research Activities A refundable credit for qualified high technology businesses, subject to an annual statewide cap and certification.	Based on the federal credit rate applied to Hawaii QREs	Refundable	active Official Source
Idaho ID	Idaho Credit for Idaho Research Activities A straightforward incremental credit against Idaho income tax for research performed within the state.	5% of qualified Idaho research expenses above the base amount	Offset Only	active Official Source
Illinois IL	Illinois Research and Development Credit An incremental credit for research conducted in Illinois, extended by the legislature through the end of the decade.	6.5% of the increase in Illinois qualified research expenses	Offset Only	active Official Source
Indiana IN	Indiana Research Expense Credit A two-tier credit with a generous rate on the first tranche of qualifying research spending.	15% of the first $1M of qualified increase; 10% above that	Offset Only	active Official Source
Iowa IA	Iowa Research Activities Credit One of the few fully refundable state research credits, available to companies in qualifying industries.	6.5% regular method; 4.55% alternative simplified method	Refundable	active Official Source
Kansas KS	Kansas Research and Development Credit A recently expanded and now transferable credit that opened the program to pass-through entities.	10% of the increase in Kansas qualified research expenditures	Offset Only	active Official Source
Kentucky KY	Kentucky Qualified Research Facility Tax Credit A construction-focused incentive for building or equipping facilities used for qualified research in Kentucky.	5% of qualified research facility construction and equipment costs	Offset Only	active Official Source
Louisiana LA	Louisiana Research and Development Tax Credit A headcount-tiered credit that is especially generous to small Louisiana employers and SBIR/STTR award recipients.	30% for under 50 employees; 10% for 50-99; 5% for 100+	Offset Only	active Official Source
Maine ME	Maine Research Expense Tax Credit A dual-component credit covering both incremental research spending and basic research payments.	5% of the excess over the base amount; 7.5% for basic research payments	Offset Only	active Official Source
Maryland MD	Maryland Research and Development Tax Credit A competitively allocated credit that is refundable for small businesses meeting asset thresholds.	10% of eligible Maryland research expenses above the base	Refundable	active Official Source
Massachusetts MA	Massachusetts Research Credit A permanent, uncapped credit that is a cornerstone of the state's life sciences and technology economy.	10% of qualified expenses above the base; 15% of basic research payments	Offset Only	active Official Source
Michigan MI	Michigan Research and Development Tax Credit A newly enacted credit that restored a state-level research incentive to Michigan, with a bonus for university collaboration.	Up to 10% for large employers and 15% for small employers above base, plus 5% for university collaboration	Refundable	active Official Source
Minnesota MN	Minnesota Credit for Increasing Research Activities A two-tier credit that is partially refundable for pass-through owners.	10% of the first $2M of qualifying expenses; 4% above that	Refundable	active Official Source
Nebraska NE	Nebraska Research and Development Act Credit A refundable and transferable credit with an enhanced rate for research performed on a university campus.	15% of the federal credit attributable to Nebraska; 35% for university-campus research	Refundable	active Official Source
New Hampshire NH	New Hampshire Research and Development Tax Credit A capped credit applied against the state's business profits and business enterprise taxes.	Percentage of qualified manufacturing R&D wages, subject to per-business and statewide caps	Offset Only	active Official Source
New Jersey NJ	New Jersey Research and Development Tax Credit A generous credit paired with a technology transfer program that lets loss-making companies sell unused credits for cash.	10% of the excess of qualified research expenses over the base amount	Offset Only	active Official Source
New Mexico NM	New Mexico Technology Jobs and Research and Development Tax Credit A dual basic and additional credit tied to payroll growth, with a rural bonus and refundability for small businesses.	5% basic and 5% additional; doubled to 10% each in rural areas	Refundable	active Official Source
New York NY	New York Life Sciences and Excelsior Research and Development Tax Credit Research incentives delivered through the Excelsior Jobs Program and a dedicated refundable life sciences credit.	Excelsior R&D component of 6% of federal credit attributable to NY; life sciences credit of 15% or 20%	Refundable	active Official Source
North Dakota ND	North Dakota Research and Experimental Expenditures Credit A tiered credit that is transferable for qualifying early-stage technology companies.	25% of the first $100,000 of excess expenses; 8% above that	Offset Only	active Official Source
Ohio OH	Ohio Research and Development Investment Tax Credit A non-refundable credit applied against the commercial activity tax rather than an income tax.	7% of the excess of Ohio qualified research expenses over the three-year average	Offset Only	active Official Source
Pennsylvania PA	Pennsylvania Research and Development Tax Credit A competitively allocated and freely sellable credit with a dedicated small business set-aside.	10% of the increase over base; 20% for qualifying small businesses	Offset Only	active Official Source
Rhode Island RI	Rhode Island Credit for Qualified Research Expenses One of the highest headline state credit rates in the country, with a very long carryforward.	22.5% of the first $111,111 of excess expenses; 16.9% above that	Offset Only	active Official Source
South Carolina SC	South Carolina Research Expenses Credit A simple, broadly available credit with a long carryforward, frequently used by the state's manufacturing base.	5% of qualified South Carolina research expenses	Offset Only	active Official Source
Texas TX	Texas Research and Development Incentive A restructured incentive delivered as a sales and use tax exemption on qualifying research materials and equipment.	Full sales and use tax exemption on qualifying research property	Offset Only	active Official Source
Utah UT	Utah Research Activities Credit A three-part credit covering incremental research, basic research payments and a share of total in-state research spending.	5% incremental, 5% basic research payments, 7.5% of total Utah QREs	Offset Only	active Official Source
Vermont VT	Vermont Research and Development Tax Credit A credit calculated as a straight percentage of the federal credit earned on Vermont research.	27% of the federal research credit attributable to Vermont	Offset Only	active Official Source
Virginia VA	Virginia Research and Development Expenses Tax Credit Two parallel programs: a refundable credit for smaller research programs and a non-refundable major research credit.	15% of the first $300,000 of Virginia QREs; 20% for university research; 10% under the major program	Refundable	active Official Source
Wisconsin WI	Wisconsin Research Expense Credit A partially refundable credit with enhanced rates for internal combustion engine and energy efficient product research.	5.75% of the increase over base; 11.5% for qualifying engine and energy efficiency research	Refundable	active Official Source

Not Sure Which Programs You Can Stack?

Depending on your business and where the research is performed, you may qualify for both federal and state R&D incentives. We review your activities to identify applicable programs and potential opportunities in one assessment.

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