Research and Development Tax Credit

Allows companies holding qualifying Research and Development Tax Credits to apply for approval to sell those tax credits and assign them to the buyer(s).

Guidelines:

• R&D Tax Credit Guidelines (Adobe PDF)

Uses:

Applied research and development expenditures

Funding:

10% tax credit of company’s increased research and development expenses over a base period (prorated to not exceed $15 million annual cap for all businesses); Up to 20% of total pool set aside for small businesses

Eligibility:

Businesses qualifying for the federal Research and Development tax credit and making research and development investments in Pennsylvania

Terms:

Applicable to CNI, CSFT and PIT tax liability; Unused credits may be carried over for up to 15 succeeding taxable years

Where to Apply:

Pennsylvania Department of Revenue

Purpose of Funding:

• Research & Development