State Credit Name: Pennsylvania Research and Development Tax Credit

Expiration Date: Indefinite

Who Can Apply? Corporations, flow-through entities, individuals and sole proprietors

Credit Carry Forward: Unused credit can be carried forward 15 years.

About the Credit: The Pennsylvania adopts the federal definition of qualified research. The R&D credit rate is 10% . Pennsylvania caps its total R&D tax credit at $15 million each year, setting aside up to 20% for small businesses. 

Notes: The Pennsylvania R&D tax credit allows technology companies to sell unused R&D tax credits on the open market to help advance and grow their businesses.  Businesses that haven’t utilized all of their R&D tax credits within one year after they were approved by the Department of Revenue may apply to the Pennsylvania Department of Community and Economic Development for approval to assign their eligible R&D tax credits to another taxpayer that can then use the purchased credits to offset up to 75 percent of its own tax liability with the purchased credit.

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

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Why Swanson Reed

We provide full, hands-on support from start to finish.

Are You Eligible?

Take our eligibility wizard to find out if you qualify for a tax credit.

Calculate Your Benefit

Use our quick calculator to determine your R&D tax credit benefit.

Know Your Deadline

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For Accountants

Take advantage of our extensive database of videos, case law and recent news.

Industry Case Studies

Find out the qualifying R&D activities specific to your industry.
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