PA Research & Development (R&D) Tax Credit

This is the primary R&D entitlement program. It provides a tax credit against PA Corporate Net Income Tax or Personal Income Tax for qualifying R&D expenses.

• Credit Amount: 10% of the increase in qualified R&D expenses.
• Small Business Bonus: 20% credit rate for qualified small businesses (assets under $5 million).
• Key Feature: The credit is non-refundable but can be carried forward for up to 15 years.

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R&D Tax Credit Assignment Program

This program allows businesses with unused R&D tax credits (that they cannot apply to their own tax liability) to sell them to other companies. This is crucial for pre-profit or low-profit startups, effectively turning the tax credit into cash.

• Purpose: Monetize unused R&D tax credits.
• Process: Requires application and approval from the Dept. of Community & Economic Development (DCED) to sell the credits.

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Ben Franklin Technology Partners (BFTP)

A cornerstone of PA's tech ecosystem, BFTP is a state-funded initiative that provides investment, business support, and technical assistance to early-stage tech firms and established manufacturers. They operate through four regional centers.

• Focus: Technology commercialization, startup acceleration, and manufacturing innovation.
• Funding: Often provides direct investments (loans or equity) and challenge grants.
• Eligibility: Entrepreneurs, start-ups, early-stage companies, and established manufacturers.

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Small Business Innovation Research (SBIR) / STTR

These are highly competitive *federal* grant programs, but they are critical for R&D-focused small businesses in PA. The programs require businesses to conduct R&D with the potential for commercialization.

• SBIR: For small businesses to engage in Federal R&D.
• STTR: Requires collaboration with a non-profit research institution (like a university).
• Note: PA offers state-level support, like the Global Access Program (GAP), to help businesses compete globally, which complements these federal programs.

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Alternative and Clean Energy Program (ACE)

Administered by DCED, this program provides financial assistance (grants and loans) for projects related to alternative and clean energy. This often includes the R&D, development, and construction of clean energy projects.

• Focus: Utilization, development, and construction of alternative and clean energy projects in Pennsylvania.
• Funding: Can be used for R&D of new clean energy technologies.

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Pennsylvania First Program (PA First)

This is a comprehensive funding tool to support large-scale business expansion, relocation, and development projects. While not exclusively an R&D grant, companies focused on R&D that are creating significant jobs or making large investments can be eligible.

• Focus: Large-scale projects, significant job creation, and major capital investment.
• Type: Often a customized proposal of grants, loans, and tax credits.

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Agricultural Research Grant Program

This program supports research projects focused on improving Pennsylvania's agriculture industry. It is open to a wide range of organizations, including businesses.

• Focus: Research on agricultural topics, practices, and technologies.
• Eligibility: Individuals, organizations, and businesses focused on agriculture.

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Small Business Advantage Grant

Offered by the Department of Environmental Protection (DEP), this grant helps small businesses implement projects that reduce waste, prevent pollution, or improve energy efficiency. This can involve adopting or researching new, cleaner technologies.

• Focus: Energy efficiency, pollution reduction, waste prevention.
• Eligibility: PA small businesses with 100 or fewer full-time employees.

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