Pennsylvania R&D Funding
A guide to R&D grants, tax credits, and programs for PA businesses.
Entitlement (Tax Credits)
These programs are generally available to any Pennsylvania business that meets the specific statutory requirements. They are not competitive, meaning you are "entitled" to the benefit if you qualify.
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.
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.
Competitive Grants & Programs
These programs involve a competitive application process where businesses compete for a limited pool of funds. Funding is typically awarded based on merit, alignment with program goals, and potential for impact.
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.
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.
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.
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.
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.
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.
No grants found matching your search.
Who We Are:
Swanson Reed is one of the largest Specialist R&D Tax Credit advisory firm in the United States. With offices nationwide, we are one of the only firms globally to exclusively provide R&D Tax Credit consulting services to our clients. We have been exclusively providing R&D Tax Credit claim preparation and audit compliance solutions for over 30 years.
Swanson Reed’s Pennsylvania office provides R&D tax credit consulting and advisory services to Philadelphia, Pittsburgh, Allentown, Erie, Reading, Scranton, Bethlehem, Lancaster, Harrisburg, Altoona, York, State College, Wilkes-Barre, Chester, Williamsport, Easton, Lebanon, Hazleton, New Castle and Johnstown.
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What is the R&D Tax Credit?
The Research & Experimentation Tax Credit (or R&D Tax Credit), is a general business tax credit under Internal Revenue Code section 41 for companies that incur research and development (R&D) costs in the United States. The credits are a tax incentive for performing qualified research in the United States, resulting in a credit to a tax return. For the first three years of R&D claims, 6% of the total qualified research expenses (QRE) form the gross credit. In the 4th year of claims and beyond, a base amount is calculated, and an adjusted expense line is multiplied times 14%. Click here to learn more.
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R&D Tax Credit Preparation Services
Swanson Reed is one of the only companies in the United States to exclusively focus on R&D tax credit preparation. Swanson Reed provides state and federal R&D tax credit preparation and audit services to all 50 states.
If you have any questions or need further assistance, please call or email our CEO, Damian Smyth on (800) 986-4725. Feel free to book a quick teleconference with one of our national R&D tax credit specialists at a time that is convenient for you.
R&D Tax Credit Audit Advisory Services
creditARMOR is a sophisticated R&D tax credit insurance and AI-driven risk management platform. It mitigates audit exposure by covering defense expenses, including CPA, tax attorney, and specialist consultant fees—delivering robust, compliant support for R&D credit claims. Click here for more information about R&D tax credit management and implementation.
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Swanson Reed offers R&D tax credit preparation and audit services at our hourly rates of between $195 – $395 per hour. We are also able offer fixed fees and success fees in special circumstances. Learn more at https://www.swansonreed.com/about-us/research-tax-credit-consulting/our-fees/
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