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
Research Tax Credit
Important Links and Forms

PA DOR
PA Application
PA Application Instructions
PA R&D Credit FAQs

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