About the Credit: The Incremental Method: 20% of the amount spent by the corporation directly on Connecticut research and experimentation expenditures that exceed expenses in the previous years.

Non-Incremental Method: Businesses with a gross income of less than $100 million from the previous year can take 6% of QRE’s. Large companies are eligible for a graduated percentage. If a company is in an enterprise zone, they can choose to use 3.5%.

Notes: Taxpayers can elect both the Incremental and the Non-Incremental methods in a tax year. Taxpayers with a gross revenue of less than $70 million may elect to receive a refund of 65% of unused credits. The credit used in one year is limited to 1/3 of the current year credit received.

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 1000 Lafayette Boulevard, Bridgeport, Connecticut provides R&D tax credit consulting and advisory services to Bridgeport, New Haven, Stamford, Hartford, Waterbury, Norwalk, Danbury, New Britain, Bristol and Meriden.

If you have any questions or need further assistance, please call or email our local Connecticut Partner on (203) 680-9655.
Feel free to book a quick teleconference with one of our Connecticut 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.