Research and Development (R&D) Tax Credit

Overview

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).

Uses

Applied research and development expenditures

Funding

  • Ten percent 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 percent 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

How to Apply

Pennsylvania Department of Revenue

Purpose of Funding

  • Research & Development
Translate »