Utah R&D Tax Credit Summary

R&D Tax Credit Available:

Yes


Eligible Entities:

C-Corporation, S-Corporations, LLCs, Partnerships


Deadline for Tax Filing:

Due with Utah Tax Return


Data Required to Compute Credit:

  • Claim Period Federal Qualified R&D Expenses (QREs)
  • Claim Period Utah QREs
  • Utah QREs for Prior 3 Years
  • Utah Gross Receipts for Prior 4 Years

Credit Carryforward:

14 Years


R&D Credit Summary:

Utah R&D tax credit is the sum of:

  • 5% of qualified research expenses in Utah for the current tax year that exceed a base amount,
  • 5% of payments made to a qualified organization for basic research in Utah for the current taxable year that exceed a base amount, and
  • 7.5% of qualified research expenses for the taxable year.

There are two methods to calculate the base amount: Regular Credit (RC) and Alternative Simplified Credit (ASC) method.


Special Notes:

  • Credits calculated using 7.5% of a taxpayer's qualified research expenses may not be carried forward.
  • There is no official Utah form for this credit. The final credit amount gets reported on Form TC-40A (Part 4 - using code 12)
Research Tax Credit
Important Links and Forms

Utah STC
Form TC-40A
Form TC-40 Instructions

Contact Us for a No-Cost Assessment of your Federal and State Research Credit Estimate

Learn More About R&D Tax Credits