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 | activeOfficial source |
| ArizonaAZ | Arizona Credit for Increased Research ActivitiesA 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 | activeOfficial source |
| ArkansasAR | Arkansas In-House Research and Development Tax CreditIncentives 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 | activeOfficial source |
| CaliforniaCA | California Research and Development CreditA 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 | activeOfficial source |
| ColoradoCO | Colorado Enterprise Zone Research and Development Increase Tax CreditA 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 | activeOfficial source |
| ConnecticutCT | Connecticut Research and Experimental Expenditures CreditTwo 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 | activeOfficial source |
| DelawareDE | Delaware Research and Development Tax CreditA 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 | activeOfficial source |
| FloridaFL | Florida Research and Development Tax CreditA capped, competitive credit reserved for corporations in targeted high-technology industries. | 10% of qualified research expenses above the prior four-year average | Offset only | activeOfficial source |
| GeorgiaGA | Georgia Research and Development Tax CreditA 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 | activeOfficial source |
| HawaiiHI | Hawaii Tax Credit for Research ActivitiesA 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 | activeOfficial source |
| IdahoID | Idaho Credit for Idaho Research ActivitiesA 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 | activeOfficial source |
| IllinoisIL | Illinois Research and Development CreditAn 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 | activeOfficial source |
| IndianaIN | Indiana Research Expense CreditA 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 | activeOfficial source |
| IowaIA | Iowa Research Activities CreditOne of the few fully refundable state research credits, available to companies in qualifying industries. | 6.5% regular method; 4.55% alternative simplified method | Refundable | activeOfficial source |
| KansasKS | Kansas Research and Development CreditA 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 | activeOfficial source |
| KentuckyKY | Kentucky Qualified Research Facility Tax CreditA 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 | activeOfficial source |
| LouisianaLA | Louisiana Research and Development Tax CreditA 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 | activeOfficial source |
| MaineME | Maine Research Expense Tax CreditA 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 | activeOfficial source |
| MarylandMD | Maryland Research and Development Tax CreditA competitively allocated credit that is refundable for small businesses meeting asset thresholds. | 10% of eligible Maryland research expenses above the base | Refundable | activeOfficial source |
| MassachusettsMA | Massachusetts Research CreditA 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 | activeOfficial source |
| MichiganMI | Michigan Research and Development Tax CreditA 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 | activeOfficial source |
| MinnesotaMN | Minnesota Credit for Increasing Research ActivitiesA two-tier credit that is partially refundable for pass-through owners. | 10% of the first $2M of qualifying expenses; 4% above that | Refundable | activeOfficial source |
| NebraskaNE | Nebraska Research and Development Act CreditA 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 | activeOfficial source |
| New HampshireNH | New Hampshire Research and Development Tax CreditA 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 | activeOfficial source |
| New JerseyNJ | New Jersey Research and Development Tax CreditA 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 | activeOfficial source |
| New MexicoNM | New Mexico Technology Jobs and Research and Development Tax CreditA 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 | activeOfficial source |
| New YorkNY | New York Life Sciences and Excelsior Research and Development Tax CreditResearch 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 | activeOfficial source |
| North DakotaND | North Dakota Research and Experimental Expenditures CreditA 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 | activeOfficial source |
| OhioOH | Ohio Research and Development Investment Tax CreditA 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 | activeOfficial source |
| PennsylvaniaPA | Pennsylvania Research and Development Tax CreditA 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 | activeOfficial source |
| Rhode IslandRI | Rhode Island Credit for Qualified Research ExpensesOne 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 | activeOfficial source |
| South CarolinaSC | South Carolina Research Expenses CreditA 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 | activeOfficial source |
| TexasTX | Texas Research and Development IncentiveA 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 | activeOfficial source |
| UtahUT | Utah Research Activities CreditA 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 | activeOfficial source |
| VermontVT | Vermont Research and Development Tax CreditA 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 | activeOfficial source |
| VirginiaVA | Virginia Research and Development Expenses Tax CreditTwo 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 | activeOfficial source |
| WisconsinWI | Wisconsin Research Expense CreditA 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 | activeOfficial source |
Not sure which programs you can stack?
Most companies can claim a federal credit and at least one state program for the same underlying work. We map both in a single review.