Special Notes: The California Research Credit rate is 15% and it adopts the federal definition of qualified research activities and qualified research expenses. It is limited to research activities conducted in California.

The credit is calculated by comparing the taxpayer’s QRE’s to their gross receipts. The California Research Credit defines gross receipts as receipts from the sale of real, tangible, or intangible property held for sale to customers in the ordinary course of the taxpayer’s trade or business that is delivered or shipped to a purchaser in California. The difference between the taxpayer’s gross receipts and qualified research expenses can significantly maximize the credit.

Swanson Reed is one of the only companies in the United States to exclusively focus on R&D tax credit preparation. Swanson Reed’s has two offices in California: San Francisco (101 California St, San Francisco) and Pasadena (115 W California Boulevard, Pasadena). These two offices locations provide R&D tax credit consulting and advisory services to: Pasadena, Los Angeles, San Diego, San Jose, San Francisco, Fresno, Sacramento, Long Beach, Oakland, Bakersfield, Anaheim, Santa Ana, Riverside, Stockton, Chula Vista, Irvine, Fremont, San Bernardino, Modesto, Oxnard and Fontana.

If you have any questions or need further assistance, please call or email our local California Partner on (415) 795-9976.
Feel free to book a quick teleconference with one of our California 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.

California R&D Tax Credit Filing Instructions

To claim the California R&D tax credit, you need to complete and file Form FTB 3523, Research Credit, with your California tax return. This form is used to calculate the amount of the credit based on your qualified research expenses (QREs) conducted within California. The credit is generally 15% of the excess of your current year QREs over a calculated base amount, plus 24% of basic research payments. Make sure to carefully review the instructions for Form FTB 3523 to accurately determine your eligibility and calculate the credit. You will need to provide details of your qualified research activities and the associated expenses.

California Patent of the Year – 2024/2025

Guru Wireless Inc. has been awarded the 2024/2025 Patent of the Year for their innovation in wireless power delivery. Their invention, detailed in U.S. Patent No. 11916408, titled ‘Wireless power delivery systems and methods of delivering wireless power’, introduces a dynamic approach to delivering wireless power over distance.

The patented system utilizes a wireless power generation unit (GU) equipped with an antenna array and communication circuit. This unit employs volumetric refocusing to scan an area by sweeping a wireless scan signal, which is captured by recovery units (RUs) equipped with their own antenna arrays and communication circuits. Upon receiving the scan signal, each RU transmits a wireless signal back to the GU, allowing it to record the focal coordinates of each RU.

Once the GU has mapped the locations of the RUs, it emits a wireless power signal to these recorded coordinates. This method enables efficient and targeted delivery of power to multiple devices within a defined space, enhancing the practicality and scalability of wireless power systems.

Guru Wireless Inc.’s innovation holds significant potential for applications in powering Internet of Things (IoT) devices, sensors, and other electronic equipment without the need for physical connections, paving the way for more flexible and sustainable energy solutions.