R&D Tax Credit Available:
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
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.
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%).