California R&D Tax Credit Summary
CA R&D Tax Credit Available

Yes


Eligible Entities

C-Corporations, S-Corporations, LLCs, Partnerships


Deadline for Tax Filing

Due with California Tax Return


Data Required to Compute Credit
  • Claim Period Qualified R&D Expenses (QREs)
  • Gross Receipts for Prior 4 Years

Credit Carryforward

Yes - Indefinitely


CA R&D Credit Summary

The R&D tax credit equals:

  • 15% of the excess of California qualified research expenses for the taxable year over the base period research expenses.
  • 24% of basic research expenses for university-based research for the taxable year.

Special Notes

Taxpayers may elect the alternative incremental credit in which taxpayers are assigned a smaller three-tiered fixed-base percentage and a reduced three-tiered credit rate (1.49%, 1.98%, and 2.48%).


CA Research Tax Credit

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