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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