R&D Tax Credit Explained for Arizona Companies

Arizona and the R&D Tax Credit

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.

Find out more

Are you eligible?

Why choose us?

Pass an Audit?

Swanson Reed is one of the only companies in the United States to exclusively focus on R&D tax credit preparation. Swanson Reed’s office location at 3104 E Camelback Road, Phoenix, Arizona provides R&D tax credit consulting and advisory services to Phoenix, Tucson, Mesa, Chandler, Glendale, Scottsdale, Gilbert, Tempe, Peoria and Surprise.

If you have any questions or need further assistance, please call or email our local Arizona Partner on (520) 336-9423.
Feel free to book a quick teleconference with one of our Arizona R&D tax credit specialists at a time that is convenient for you. Click here for more information about R&D tax credit management and implementation.

Schedule a Teleconference