Pennsylvania R&D Tax Credit Summary

R&D Tax Credit Available:

Yes

Eligible Entities:

C-Corporations, S-Corporations, LLCs, Partnerships

Deadline for Tax Filing:

Application due by 9/15

Data Required to Compute Credit:

• Claim Period Qualified Research Expenses (QREs)
• QREs for Prior 4 Tax Years

Credit Carryforward:

15 years

R&D Credit Summary:

The Pennsylvania R&D tax credit equals 10% (large businesses) and 20% (small businesses) of Pennsylvania qualified research expenses less the greater of 50% of expenses or average of prior 4 years of qualified research expenses.

Special Notes:

• Large Businesses: Total Assets > $5M
• Small Businesses: Total Assets < $5M
• The PA R&D credit cannot be carried back