California R&D Tax Credit Summary

R&D Tax Credit Available:


Eligible Entities:

C-Corporation, 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

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%).

Research Tax Credit
Important Links and Forms

CA Form 3523
Form 3523 Instructions

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