State Program
Rhode Island Credit for Qualified Research Expenses
A research credit based on qualified research expenses, with tiered rates and a long carryforward period.
Program Overview
Rhode Island provides a research credit based on the increase in qualified research expenses for research conducted in Rhode Island over the applicable base amount. A reduced rate applies to qualifying research expenses above the applicable threshold. The credit is non-refundable and subject to a limitation based on Rhode Island tax liability for a given year. Unused credits may be carried forward for the applicable statutory period. Rhode Island also provides a separate credit for qualifying research and development property.
Eligibility
- Corporations and other eligible taxpayers with qualified research expenses associated with research conducted in Rhode Island may qualify.
- Qualifying research activities and expenses must meet the applicable requirements, including relevant IRC Section 41 definitions.
- Additional requirements may apply to the separate credit for qualifying research and development property.
Benefits
- Non-refundable credit based on qualifying increases in Rhode Island research expenses.
- Credit is subject to the applicable annual limitation based on Rhode Island tax liability.
- Unused credits may be carried forward for the applicable statutory period.
- A separate credit may be available for qualifying research and development property.
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