State Program
Pennsylvania Research and Development Tax Credit
A competitively allocated research credit with a dedicated small-business allocation and a transfer option for approved unused credits.
Program Overview
Pennsylvania provides a research and development tax credit through an annual application process subject to a statewide allocation. A portion of the available credit is reserved for qualifying small businesses that meet the applicable statutory asset threshold, and eligible small businesses may receive a higher credit rate. Approved credits that cannot be used by the original recipient may be transferred or sold to other Pennsylvania taxpayers, subject to applicable requirements. Applications must be submitted by the applicable annual deadline.
Eligibility
- Businesses that incur qualified research expenses in Pennsylvania may qualify.
- Applicants must meet applicable Pennsylvania tax filing and compliance requirements.
- Qualifying small businesses must meet the applicable statutory requirements to receive the small-business allocation.
- Applications must be submitted through the Pennsylvania Department of Revenue's annual application process by the applicable deadline.
Benefits
- Non-refundable credit that may be applied against eligible Pennsylvania corporate net income or personal income tax liability.
- A portion of the statewide credit allocation is reserved for qualifying small businesses.
- Eligible small businesses may receive a higher credit rate.
- Approved unused credits may be transferred or sold to other Pennsylvania taxpayers, subject to applicable requirements.
Schedule a Teleconference
A scoping conversation clarifies exposure, open IDRs, and whether readiness or active defense is the priority.