State program
Pennsylvania Research and Development Tax Credit
A competitively allocated and freely sellable credit with a dedicated small business set-aside.
Program overview
Pennsylvania runs an annual application cycle with a statewide allocation, a portion of which is reserved for small businesses with assets under a statutory threshold. Small businesses receive a higher credit rate. The defining feature is transferability: approved credits that a company cannot use may be sold on the open market to other Pennsylvania taxpayers, and an active broker market exists, so credits typically convert to cash at a modest discount. Applications are due by 1 December each year.
Eligibility
Businesses that incurred qualified research expenses in Pennsylvania and are compliant with state tax filing obligations, applying through the Department of Revenue's annual cycle.
Benefits
Non-refundable but freely sellable credit against Pennsylvania corporate net income and personal income tax.
Find out what your research actually qualifies for
A scoping conversation takes thirty minutes and costs nothing. You leave with a view on eligibility, likely credit range and the documentation you would need.