Federal and 38 state R&D credit programs, in one searchable place

State programs

• AZArizona24% of the first $2.5M of excess QREs; 15% above thatA two-tier state credit modeled on the federal research credit. The partial refund for small companies is repealed for taxable years beginning on or after January 1, 2026.
  • Offset only (refunds were available to small companies only for taxable years beginning before 2026)
  Carryforward: 10 year carryforward
• ARArkansas20% of qualified in-house research expenditure increases; 33% for university-based researchIncentives for in-house research, university-partnered research and targeted-business research, administered through the Arkansas Economic Development Commission.
  • Offset only
  • Pre-approval required
  • Transferable
  Carryforward: 9 year carryforward
• CACalifornia15% of qualified expenses above base (or, by election for taxable years beginning on or after January 1, 2025, a 3% alternative simplified credit); 24% of basic research paymentsA long-standing, permanent state credit that closely tracks IRC Section 41 but uses California-only expenses and a fixed base percentage.
  • Offset only, with an elective refund of credits disallowed by the $5 million limitation for taxable years 2024 through 2029
  Carryforward: Indefinite carryforward
• COColorado3% of the increase in Enterprise Zone research spendingA geographically targeted credit for companies that increase research spending inside a designated Colorado Enterprise Zone.
  • Offset only
  • Pre-approval required
  Carryforward: Carried forward until used
• CTConnecticut20% incremental credit; 1% to 6% graduated non-incremental creditTwo complementary credits: an incremental credit on increased research spending and a non-incremental credit on total research expenses.
  • Partly refundable
  Carryforward: 15 years for both credits from income years beginning on or after January 1, 2021; earlier non-incremental credits carry forward until used
• DEDelawareElect either 10% of Delaware QREs above the Delaware base amount, or 50% of the federal Alternative Simplified Credit apportioned to Delaware; small businesses (average annual gross receipts of $20 million or less, adjusted for inflation) receive 20% under the first method or 100% of the apportioned federal ASC under the secondA refundable state credit that mirrors the federal calculation and pays cash to companies with no Delaware tax liability.
  • Refundable
  • Pre-approval required
  Carryforward: Refundable, so carryforward is rarely needed
• FLFlorida10% of qualified research expenses above the prior four-year averageA capped, competitive credit reserved for corporations in targeted high-technology industries.
  • Offset only
  • Pre-approval required
  Carryforward: 5 year carryforward
• GAGeorgia10% of the increase in Georgia qualified research expensesA broadly available credit that can offset both income tax and, once exhausted, state payroll withholding.
  • Offset only
  Carryforward: 5 year carryforward for credits from taxable years beginning on or after January 1, 2025 (10 years for earlier credits)
• HIHawaiiThe federal research credit multiplied by the ratio of Hawaii QREs to total QREs; limited to small businesses, subject to a $5 million annual statewide cap, and repealed effective January 1, 2029 (Act 24, SLH 2026)A refundable credit for qualified high technology businesses, subject to an annual statewide cap and certification.
  • Refundable
  • Pre-approval required
  Carryforward: Refundable
• IDIdaho5% of qualified Idaho research expenses above the base amountA straightforward incremental credit against Idaho income tax for research performed within the state.
  • Offset only
  Carryforward: 14 year carryforward
• ILIllinois6.5% of the increase in Illinois qualified research expensesAn incremental credit for research conducted in Illinois, extended to tax years ending before January 1, 2037.
  • Offset only
  Carryforward: 5 year carryforward
• INIndiana15% of the first $1M of qualified increase; 10% above thatA two-tier credit with a generous rate on the first tranche of qualifying research spending.
  • Offset only
  Carryforward: 10 year carryforward
• IAIowaUp to 3.5% of eligible Iowa research expenditures under the IEDA Research and Development Tax Credit Program for tax years beginning on or after January 1, 2026 (awarded and prorated within a statewide cap); for earlier years, the Research Activities Credit of 6.5% (regular method) or 4.55% (alternative simplified method)From tax year 2026, a refundable credit of up to 3.5% under the IEDA Research and Development Tax Credit Program, prorated within a $40 million statewide cap; certification and an annual application are required.
  • Refundable
  • Pre-approval required
  Carryforward: No carryforward (refundable)
• KSKansas10% of the increase in Kansas qualified research expendituresA recently expanded and now transferable credit that opened the program to pass-through entities.
  • Offset only
  • Pre-approval required
  • Transferable
  Carryforward: Carried forward until used; one-time transfer permitted
• KYKentucky5% of qualified research facility construction and equipment costsA construction-focused incentive for building or equipping facilities used for qualified research in Kentucky.
  • Offset only
  Carryforward: 10 year carryforward
• LALouisiana30% for under 50 employees; 10% for 50-99; 5% for 100+A headcount-tiered credit that is especially generous to small Louisiana employers and SBIR/STTR award recipients. From July 1, 2025 credits are subject to a $12 million annual statewide cap paid first-come, first-served, and from January 1, 2026 they offset income tax only (not franchise tax).
  • Offset only
  • Pre-approval required
  Carryforward: 5 year carryforward
• MEMaine5% of the excess over the base amount; 7.5% for basic research paymentsA dual-component credit covering both incremental research spending and basic research payments.
  • Offset only
  Carryforward: 15 year carryforward
• MDMaryland10% of eligible Maryland research expenses above the baseA competitively allocated credit that is refundable for small businesses meeting asset thresholds.
  • Partly refundable
  • Pre-approval required
  Carryforward: 7 year carryforward
• MAMassachusetts10% of qualified expenses above the base; 15% of basic research paymentsA permanent, uncapped credit that is a cornerstone of the state's life sciences and technology economy.
  • Offset only
  Carryforward: 15 year carryforward; unlimited in some cases
• MIMichiganUp to 10% for large employers and 15% for small employers above base, plus 5% for university collaborationA newly enacted credit that restored a state-level research incentive to Michigan, with a bonus for university collaboration.
  • Refundable
  • Pre-approval required
  Carryforward: Refundable
• MNMinnesota10% of the first $2M of qualifying expenses; 4% above thatA two-tier credit that, for tax years beginning after December 31, 2024, any taxpayer can elect to have partly refunded (19.2% for 2025; 25% for 2026 and 2027).
  • Partly refundable
  Carryforward: 15 year carryforward
• MOMissouri15% of additional Missouri QREs; 20% for research with a Missouri college or university.A capped, transferable credit for tax years 2023 through 2028, up to $300,000 per taxpayer per year; apply to the Missouri Department of Economic Development between August 1 and September 30 of the year after the expenses.
  • Offset only
  • Pre-approval required
  • Transferable
  Carryforward: 12 year carryforward
• NENebraska15% of the federal credit attributable to Nebraska; 35% for university-campus researchA credit usable against Nebraska income tax or for a refund of Nebraska sales and use taxes paid, with an enhanced rate for research performed on a university campus.
  • Partly refundable (from July 1, 2026, usable against income tax or as a refund of Nebraska sales and use tax paid)
  Carryforward: No carryforward; the credit is computed and used each year
• NHNew HampshirePercentage of qualified manufacturing R&D wages, subject to per-business and statewide capsA capped credit applied against the state's business profits and business enterprise taxes.
  • Offset only
  • Pre-approval required
  Carryforward: 5 year carryforward
• NJNew Jersey10% of the excess of qualified research expenses over the base amountA generous credit paired with a technology transfer program that lets loss-making companies sell unused credits for cash.
  • Offset only
  • Transferable
  Carryforward: 7 year carryforward; 15 years in targeted industries
• NMNew Mexico5% basic and 5% additional; doubled to 10% each in rural areasA dual basic and additional credit tied to payroll growth, with a rural bonus and refundability for small businesses.
  • Partly refundable
  • Pre-approval required
  Carryforward: Unused credits may be claimed for up to 3 years from the original claim; the additional credit is partly refundable for qualified small businesses
• NYNew YorkExcelsior R&D tax credit component of 50% of the federal research credit attributable to New York research expenditures, capped at 6% of New York qualified research expenditures (7% for qualified semiconductor supply chain projects; 8% for qualified green and Green CHIPS projects); life sciences research and development credit of 15% (20% for smaller companies) of qualified research and development expendituresResearch incentives delivered through the Excelsior Jobs Program and a dedicated refundable life sciences credit.
  • Refundable
  • Pre-approval required
  Carryforward: Refundable within program terms
• NDNorth Dakota25% of the first $100,000 of excess expenses; 8% above thatA tiered credit that is transferable for qualifying early-stage technology companies.
  • Offset only
  • Transferable
  Carryforward: 3 year carryback, 15 year carryforward
• OHOhio7% of the excess of Ohio qualified research expenses over the three-year averageA non-refundable credit applied against the commercial activity tax rather than an income tax.
  • Offset only
  Carryforward: 7 year carryforward
• OROregon15% of qualified semiconductor research expenses above the base, up to $4 million per taxpayer.Available only to semiconductor companies certified each year by Business Oregon, for tax years beginning in 2024 through 2029.
  • Partly refundable
  • Pre-approval required
  Carryforward: 5 year carryforward for the nonrefundable portion
• PAPennsylvania10% of the increase over base; 20% for qualifying small businessesA capped, prorated credit that can be sold with DCED approval, with a dedicated small business set-aside.
  • Offset only
  • Pre-approval required
  • Transferable
  Carryforward: 15 year carryforward; credits may be sold
• RIRhode Island22.5% of the first $111,111 of excess expenses; 16.9% above thatOne of the highest headline state credit rates in the country, with a 15-year carryforward for credits from tax years beginning on or after January 1, 2026 (seven years for earlier credits).
  • Offset only
  Carryforward: 15 year carryforward for credits from tax years beginning on or after January 1, 2026 (7 years for earlier credits)
• SCSouth Carolina5% of qualified South Carolina research expensesA simple, broadly available credit with a long carryforward, frequently used by the state's manufacturing base.
  • Offset only
  Carryforward: 10 year carryforward
• TXTexasFranchise tax credit of 8.722% of Texas qualified research expenses above 50% of the average Texas QREs for the three preceding tax periods (10.903% where the taxpayer contracts with one or more public or private institutions of higher education); 4.361% of Texas QREs (5.451% with a higher-education contract) if no QREs in any of the three preceding periods. Credit generally limited to 50% of franchise tax due, with unused credit carried forward up to 20 consecutive reports; refundable for entities that owe no franchise tax (qualified new veteran-owned businesses, entities whose tax due is under $1,000, and entities at or below the no-tax-due revenue threshold), except E-Z computation filers. No pre-approval. Applies to reports due on or after January 1, 2026; the sales and use tax exemption for R&D property was repealed effective January 1, 2026.A permanent franchise tax credit, rebuilt by SB 2206 (2025) to follow the federal IRC §41 ASC-style calculation using Texas-only expenses, with a refund for taxpayers that owe no franchise tax. The former sales and use tax exemption for research property ended January 1, 2026.
  • Partly refundable
  Carryforward: Up to 20 consecutive reports for unused credits (subject to the 50%-of-tax limitation); refundable for entities that owe no franchise tax
• UTUtah5% incremental, 5% basic research payments, 7.5% of total Utah QREsA three-part credit covering incremental research, basic research payments and a share of total in-state research spending.
  • Offset only
  Carryforward: 14 year carryforward for the incremental components
• VTVermont27% of the federal research credit attributable to Vermont (75% for taxable years beginning on or after January 1, 2027)A credit calculated as a straight percentage of the federal credit earned on Vermont research.
  • Offset only
  Carryforward: 10 year carryforward
• VAVirginiaExpired: no credit for taxable years beginning on or after January 1, 2025. For earlier years, 15% of the first $300,000 of Virginia QREs above the base (20% for research with a Virginia college or university), and the Major R&D Expenses Credit for companies with Virginia QREs over $5 millionExpired for taxable years beginning on or after January 1, 2025. For earlier years: a refundable credit for smaller research programs and a non-refundable major research credit, with carryforwards of the major credit still usable.
  • Expired (tax years beginning before 2025 only)
  Carryforward: Refundable standard credit; 10 year carryforward for the major credit
• WIWisconsin5.75% of the increase over base; 11.5% for qualifying engine and energy efficiency researchA partially refundable credit with enhanced rates for internal combustion engine and energy efficient product research.
  • Partly refundable
  Carryforward: Partially refundable (up to 25%); 50 year carryforward for the nonrefundable balance
• ALAlabamaNo state R&D creditAlabama has no state R&D tax credit program. Research there can still qualify for the federal credit. Federal-only mock audit
• AKAlaskaNo state R&D creditAlaska has no state R&D tax credit program. Research there can still qualify for the federal credit. Federal-only mock audit
• DCDistrict of ColumbiaNo state R&D creditDistrict of Columbia has no state R&D tax credit program. Research there can still qualify for the federal credit. Federal-only mock audit
• MSMississippiNo state R&D creditMississippi has no state R&D tax credit program. Research there can still qualify for the federal credit. Federal-only mock audit
• MTMontanaNo state R&D creditMontana has no state R&D tax credit program. Research there can still qualify for the federal credit. Federal-only mock audit
• NVNevadaNo state R&D creditNevada has no state R&D tax credit program. Research there can still qualify for the federal credit. Federal-only mock audit
• NCNorth CarolinaNo state R&D creditNorth Carolina has no state R&D tax credit program. Research there can still qualify for the federal credit. Federal-only mock audit
• OKOklahomaNo state R&D creditOklahoma has no state R&D tax credit program. Research there can still qualify for the federal credit. Federal-only mock audit
• SDSouth DakotaNo state R&D creditSouth Dakota has no state R&D tax credit program. Research there can still qualify for the federal credit. Federal-only mock audit
• TNTennesseeNo state R&D creditTennessee has no state R&D tax credit program. Research there can still qualify for the federal credit. Federal-only mock audit
• WAWashingtonNo state R&D creditWashington has no state R&D tax credit program. Research there can still qualify for the federal credit. Federal-only mock audit
• WVWest VirginiaNo state R&D creditWest Virginia has no state R&D tax credit program. Research there can still qualify for the federal credit. Federal-only mock audit
• WYWyomingNo state R&D creditWyoming has no state R&D tax credit program. Research there can still qualify for the federal credit. Federal-only mock audit

Information in this database is general in nature, not tax advice. Program details change frequently; always confirm current rules with the relevant revenue authority or engage a specialist before acting. Last reviewed November 2026.