State program
Virginia Research and Development Expenses Tax Credit
Two parallel programs: a refundable credit for smaller research programs and a non-refundable major research credit.
Program overview
Virginia operates a refundable research and development expenses tax credit for companies with annual Virginia qualified research expenses below a statutory threshold, and a separate major research and development expenses credit for companies above it. Both programs require an application to the Virginia Department of Taxation by a fixed autumn deadline and operate under annual statewide caps with pro rata reduction if oversubscribed. Enhanced rates apply to research conducted in conjunction with a Virginia public or private college or university.
Eligibility
Taxpayers with qualified research expenses conducted in Virginia who apply by the annual September deadline. The major credit applies once Virginia QREs exceed the statutory threshold.
Benefits
Refundable under the standard program; non-refundable but carried forward under the major research program.
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.