Research Tax Credit Arizona: Key Benefits Explained

ARIZONA AVAILABLE INCENTIVES

State Credit Name: Research and Development Income Tax Credit

Expiration Date: Permanent
Who Can Apply? Corporations and Flow-Through Entities
Credit Carry Forward: 15 years, but with restrictions based on the tax year the credit was earned.

About the Credit: The 2011 through 2030 R&D tax credit is equal to 24% of the first $2.5 million in qualifying expenses plus 15% of the qualifying expenses in excess of $2.5 million. For 2031 and thereafter, the tax credit rates will be 20% of the first $2.5 million in qualifying expenses plus 11% of the qualifying expenses in excess of $2.5 million.

Notes: The credit is partially refundable beginning in tax year 2011. The taxpayer may elect to receive 75% of the excess credit refunded and waive the remaining 25% instead of carrying excess credit forward. To be eligible for the refund, the taxpayer must have less than 150 employees, receive a Certificate of Qualification from the Arizona Commerce Authority and have a current year Arizona R&D tax credit that exceeds its current year’s tax liability.

Click here to find out if you are eligible for the federal research credit.

Swanson Reed in Arizona provides R&D tax credit consulting and advisory services to Phoenix, Tucson, Mesa, Chandler, Glendale, Scottsdale, Gilbert, Tempe, Peoria, Surprise, Yuma, Avondale, Goodyear, Flagstaff, Buckeye, Lake Havasu City, Casa Grande, Sierra Vista, Maricopa and Fontana.

If you have any questions or need further assistance, please call us on (800) 986 4725.

Feel free to book a quick teleconference with one of R&D tax specialists at a time that is convenient for you, if you would like to learn more about R&D tax credit opportunities.

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