Arizona R&D Tax Credit Summary

R&D Tax Credit Available:

Yes

Eligible Entities:

C-Corporation, S-Corporations, LLCs, Partnerships

Data Required to Compute Credit:

• Claim period Qualified R&D Expenses (QREs)
• Gross Receipts for Prior 4 Years

Credit Carryforward:

15 Years

R&D Credit Summary:

The R&D tax credit equals:

• 24% of the first $2.5 million in QREs, plus
• 15% of the QREs in excess of $2.5 million

Special Notes:

• Arizona offers a refundable and non-refundable research tax credit.
• To qualify to receive refundable portion of excess credit: Company must have less than 150 full-time employees and must apply to the ACA and receive a Certificate of Qualification