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Comprehensive R&D Tax Credit Glossary Directory

Published by | Swanson Reed Specialist R&D Tax Advisors | April 1, 2026

What is the Swanson Reed R&D Tax Credit Glossary?

Answer: The Swanson Reed R&D Tax Credit Glossary is a centralized, authoritative hub that defines the statutory, regulatory, and technical terminology for the federal Research and Development tax credit (IRC Section 41) and all 50 state-specific R&D tax incentives. This directory provides businesses, CPAs, and corporate tax professionals with precise definitions for Qualified Research Expenses (QREs), the Four-Part Test, state apportionment rules, tax form compliance, and Section 174 amortization to maximize corporate innovation incentives.

Key Takeaways

  • Federal Foundations: Access unified definitions for federal R&D standards, including IRC Section 41 parameters, the Four-Part Test, and qualifying expense criteria.
  • State-Specific Jurisprudence: Navigate the unique statutory codes, tax schedules, refundability rules, and credit carryforward mechanisms for every U.S. state.
  • Audit & Compliance Readiness: Understand the precise definitions of wages, supplies, and contract research to ensure your claims are documented in accordance with strict regulatory guidelines.

Select a Jurisdiction to View Glossary Terms

Below is the complete index of our federal and state R&D tax credit glossaries. Click on a jurisdiction to explore the specific definitions, forms, and compliance terminology relevant to that geographic area.

Federal R&D Tax Credit Glossary
Alabama Alaska Arizona Arkansas
California Colorado Connecticut Delaware
Florida Georgia Hawaii Idaho
Illinois Indiana Iowa Kansas
Kentucky Louisiana Maine Maryland
Massachusetts Michigan Minnesota Mississippi
Missouri Montana Nebraska Nevada
New Hampshire New Jersey New Mexico New York
North Carolina North Dakota Ohio Oklahoma
Oregon Pennsylvania Rhode Island South Carolina
South Dakota Tennessee Texas Utah
Vermont Virginia Washington West Virginia
Wisconsin Wyoming

Compliance and Privacy Policy: Swanson Reed is committed to maintaining the highest standards of data security and regulatory compliance. All definitions and terminology provided within these glossaries are for informational purposes. For detailed information regarding how we handle your data, protect confidentiality during R&D tax credit engagements, and adhere to industry regulations, please review our official Privacy Policy.

Federal R&D Tax Credit
  • Case Studies
    Real-world examples illustrating how the R&D tax credit is successfully claimed.
  • Payroll Tax Offset
    A provision allowing qualified small businesses to apply R&D credits against their payroll tax liability.
  • Case Law
    Legal precedents and court rulings that interpret and shape R&D tax credit statutes.
  • Section 41
    The primary Internal Revenue Code section establishing the federal credit for increasing research activities.
  • Section 174
    The tax code section governing the treatment and mandatory amortization of research and experimental expenditures.
  • Qualified Research Expenses (QREs)
    Specific costs, primarily wages, supplies, and contract research, eligible for the R&D credit calculation.
  • Four-Part Test
    The strict statutory criteria every activity must pass to be legally considered qualified research.
  • Permitted Purpose
    The requirement that research must aim to create a new or improved function, performance, reliability, or quality.
  • Technological in Nature
    The rule stating research must fundamentally rely on principles of physical or biological sciences, engineering, or computer science.
  • Elimination of Uncertainty
    The requirement that the research must attempt to resolve an unknown capability, method, or design element.
  • Process of Experimentation
    The systematic evaluation of alternatives, such as modeling or trial-and-error, to overcome technical challenges.
  • Business Component
    The specific product, process, software, technique, formula, or invention being developed or improved.
  • Shrink-Back Rule
    A rule applying the qualification tests to the next smallest subset of a component if the entire system fails the test.
  • Wages
    Taxable compensation (Box 1 W-2) paid to employees performing, supervising, or supporting qualified research.
  • Supplies
    Tangible property, excluding land or depreciable assets, consumed directly during the R&D process.
  • Contract Research Expenses
    Eligible costs paid to third-party contractors performing research on your behalf, typically claimable at 65%.
  • Alternative Simplified Credit (ASC)
    A simplified credit calculation method based on the average QREs of the prior three tax years.
  • Qualified Small Business (QSB)
    A company with under $5 million in gross receipts and less than five years of revenue history, eligible for payroll offsets.
  • Tax Cuts and Jobs Act (TCJA)
    The 2017 tax legislation that mandated the amortization of Section 174 R&E expenses beginning in 2022.
  • Amortization of R&E
    The mandatory requirement to spread the tax deduction of research expenses over 5 or 15 years instead of immediately.
  • Funded Research
    Research explicitly paid for by another entity or grant, which is generally excluded from the taxpayer’s claimable R&D.
  • Foreign Research
    Research and development conducted outside the United States, which is strictly ineligible for the federal credit.
  • Form 6765
    The official IRS tax form used to calculate and report the federal Credit for Increasing Research Activities.
Alaska
  • Alaska Statute 43.20.021(d)
    The specific state legislation that establishes and governs the Alaska R&D tax credit.
  • Form 6390 Analysis
    A breakdown of the primary tax form used by corporations to claim the Alaska research credit.
  • Federal-Based Mechanism
    Alaska’s structural reliance on federal IRC Section 41 definitions to determine qualified state expenses.
  • 18 Percent Limitation
    The statutory cap restricting the Alaska credit to 18% of the federal credit calculated on state-apportioned expenses.
  • Alaska Nexus & Apportionment
    The rules and calculations ensuring only R&D activities physically performed within Alaska generate state credits.
  • 20-Year Carryforward
    The provision allowing taxpayers to apply unused Alaska R&D credits to future tax liabilities for up to two decades.
  • AMT Offset
    Guidelines on how the Alaska R&D credit interacts with and offsets the Alternative Minimum Tax.
Arizona
  • Statute 43-1168
    The Arizona Revised Statute dictating the R&D tax credit rules for corporate taxpayers.
  • Form 308 Compliance
    The core tax schedule required by the Arizona Department of Revenue to claim the state R&D credit.
  • ACA & ADOR Roles
    The joint administrative process between the Arizona Commerce Authority and the Department of Revenue.
  • Certificate of Qualification
    The mandatory certification from the ACA required before a business can claim the refundable portion of the credit.
  • $2.5 Million Threshold
    The statutory spending breakpoint in Arizona where the credit rate shifts from 24% to 15%.
  • Refundable Cap
    The $5 million statewide annual limit on refundable R&D tax credits awarded to small businesses.
  • University Approval Guide
    Guidance on claiming the enhanced credit for basic research payments made to Arizona state universities.
Arkansas
  • Targeted Business R&D
    A highly lucrative 33% transferable tax credit available to specifically certified new or early-stage tech businesses.
  • University-Based R&D
    A 33% credit for research expenditures paid to qualified Arkansas universities and colleges.
  • Financial Incentive Agreement
    The formal, required contract between a business and the Arkansas Economic Development Commission (AEDC).
  • In-House Facility Tax Credit
    A 20% credit on eligible in-house R&D expenses for businesses that do not qualify as “Targeted Businesses.”
  • Sellable R&D Credits
    The unique provision allowing Arkansas Targeted Businesses to sell their credits to other taxpayers for cash.
  • Net Tax Liability Offset
    The maximum amount of state income tax liability a business can wipe out using their generated Arkansas R&D credits.
California
  • Franchise Tax Board (FTB)
    The state agency responsible for administering and collecting California corporate and personal income taxes.
  • RTC 17052-12
    The California Revenue and Taxation Code section establishing the R&D tax credit for personal income taxpayers.
  • RTC 23609
    The California Revenue and Taxation Code section establishing the R&D tax credit for corporate taxpayers.
  • California Qualified Research
    Research activities that meet federal IRC Section 41 requirements and are physically conducted within California.
  • CA Gross Receipts Definition
    California’s specific rules for calculating gross receipts, which generally only include sales of property or services delivered within the state.
  • Alternative Incremental Credit (AIC)
    A California-specific calculation method, distinct from the federal ASC, using a complex tiered percentage based on gross receipts.
  • Nonrefundable Credit
    The California R&D credit can only offset tax liability; excess credits cannot be refunded as cash but can be carried forward indefinitely.
  • Indefinite Carryover
    California’s unique provision allowing taxpayers to carry forward unused R&D credits forever, unlike the federal 20-year limit.
Colorado
  • Department of Revenue (CDOR)
    The state agency that oversees the taxation and administration of Colorado’s Enterprise Zone and R&D credits.
  • Pre-Certification EZ
    The mandatory process of registering with a local Enterprise Zone administrator before incurring qualified research expenses.
  • Certification Application EZ
    The formal application submitted after the tax year ends to officially claim the Enterprise Zone R&D credit.
  • OEDIT
    The Colorado state office that manages the Enterprise Zone program boundaries and business incentives.
  • 3% Credit Rate
    The standard calculation rate for the Colorado Enterprise Zone R&D credit applied to the increase in qualified expenditures.
  • Divided Equally Over Four Years
    The Colorado requirement that the calculated R&D credit must be claimed evenly across four consecutive tax years.
  • Shared Quantum Facility
    A specialized Colorado tax credit for businesses investing in quantum computing infrastructure and research.
  • Enterprise Zone (EZ)
    Specific economically distressed geographic areas in Colorado where businesses can earn the state R&D tax credit.
Connecticut
  • Research & Experimental Credit
    Connecticut’s incremental R&D tax credit designed to reward companies for increasing their research spending over prior years.
  • Research & Development Credit
    Connecticut’s non-incremental R&D tax credit based on total qualifying research expenditures for the current year.
  • C.G.S. § 12-217j
    The Connecticut General Statute defining the incremental Research and Experimental Expenditures Tax Credit.
  • C.G.S. § 12-217n
    The Connecticut General Statute defining the non-incremental Research and Development Expenses Tax Credit.
  • QSB Refund Exchange
    A program allowing Connecticut small businesses with no tax liability to exchange unused R&D credits for a cash refund at 65% value.
  • Form CT-1120RC
    The state tax form used by corporations to claim the incremental Research and Experimental Expenditures Tax Credit.
  • Form CT-1120 RDC
    The state tax form used by corporations to claim the non-incremental Research and Development Expenditures Tax Credit.
  • 70% Tax Liability Limit
    The Connecticut rule restricting businesses from offsetting more than 70% of their corporate business tax liability with R&D credits.
Delaware
  • Delaware Division of Revenue
    The state authority responsible for processing corporate tax returns and administering the Delaware R&D tax credit.
  • Del. Code Ann. tit. 30, §§ 2070-2075
    The specific sections of the Delaware Code that establish the statutory framework for the state R&D credit.
  • Delaware Apportioned Share
    The specific calculation used to determine the portion of a company’s federal R&D credit that corresponds to activity in Delaware.
  • Fully Refundable Credit
    Delaware’s provision allowing businesses to receive the full amount of their approved R&D credit as a cash refund if it exceeds tax liability.
  • Form 2070AC
    The mandatory Delaware application for the R&D tax credit, which must be submitted by September 15th each year.
  • Filing Deadline
    The strict September 15th statutory deadline for submitting the Delaware R&D credit application to the Division of Revenue.
  • $5 Million Cap
    The aggregate statewide annual limit on Delaware R&D tax credits awarded, which requires proration if total claims exceed the pool.
Florida
  • F.S. § 220.196
    The Florida statute establishing the corporate income tax credit for qualified research and development.
  • Qualified Target Industry Business (QTIB)
    A strict state designation (such as aerospace or life sciences) required to be eligible for the Florida R&D credit.
  • Commerce Certification Letter
    The formal documentation from Florida Commerce confirming a company’s QTIB status, required for the credit application.
  • $9 Million Annual Cap
    The statewide annual limit on total R&D credits awarded in Florida, which often results in a prorated allocation.
  • 50% Tax Liability Limit
    The rule restricting Florida C-corporations from offsetting more than 50% of their corporate income tax liability with R&D credits.
  • Application Window
    The strict March 20th to March 26th annual filing period to apply for the Florida R&D credit allocation.
  • Florida DOR
    The Department of Revenue, responsible for administering corporate income taxes and the R&D credit program in Florida.
Georgia
  • O.C.G.A. § 48-7-40-12
    The section of the Official Code of Georgia defining the state’s lucrative research tax credit.
  • Form IT-RD
    The official tax form published by the Georgia Department of Revenue used to calculate the state R&D credit.
  • Payroll Withholding Offset
    Georgia’s powerful provision allowing businesses to convert excess R&D credits into cash by offsetting employee payroll withholding taxes.
  • Form IT-WH
    The specific form and 90-day notice of intent required to apply the Georgia R&D credit against payroll withholding.
  • 50% Tax Liability Limit
    The restriction limiting Georgia taxpayers from offsetting more than 50% of their net state income tax liability in a single year.
  • Retail Business Exclusion
    A specific statutory rule in Georgia excluding pure retail and telecommunications operations from claiming the state R&D credit.
  • 0.300 Multiplier
    A unique base amount calculation metric used in Georgia for companies without adequate gross receipts history.
Hawaii
  • HRS 235-110.91
    The Hawaii Revised Statute outlining the state’s fully refundable tax credit for research activities.
  • Qualified High Tech Business (QHTB)
    The required state classification for companies seeking Hawaii’s R&D credit, dictating specific revenue and operational tests.
  • DBEDT
    The Department of Business, Economic Development and Tourism, the agency that certifies Hawaii R&D credit applications.
  • Form N-346A
    The mandatory initial application that must be submitted to the DBEDT by March 30th to request credit certification.
  • Form N-346
    The final tax form attached to the Hawaii state income tax return to formally claim the certified R&D credit.
  • Fully Refundable Credit
    Hawaii’s provision allowing a QHTB to receive the full amount of their approved R&D credit as a cash refund if it exceeds their tax liability.
  • Annual Aggregate Cap
    The $5 million statewide limit on total Hawaii R&D tax credits, administered strictly on a first-come, first-served basis.
Idaho
  • Idaho Code § 63-3029G
    The state statute authorizing the Idaho nonrefundable credit for qualifying research and experimental expenditures.
  • Idaho State Tax Commission
    The governing body that processes tax returns and audits R&D credit claims in the state of Idaho.
  • Idaho Form 67
    The specific tax schedule used to calculate the 5% Idaho state credit for increasing research activities.
  • Idaho Form 44
    The supplemental form used to report all business income tax credits, including R&D, and apply them against Idaho tax liability.
  • Start-Up Company Election
    An Idaho provision allowing newer companies without adequate gross receipts history to establish an initial base amount for the credit.
  • 14-Year Carryforward Period
    The statutory limit allowing Idaho taxpayers to carry any unused, nonrefundable R&D credits forward for up to 14 succeeding tax years.
Kentucky
  • Research Facility Tax Credit
    A unique Kentucky incentive providing a 5% credit for the costs of constructing, remodeling, or expanding a research facility.
  • KRS 141.395
    The specific Kentucky Revised Statute that establishes and governs the tax credit for the construction of research facilities.
  • Tangible Depreciable Property
    Physical equipment and assets purchased to equip a research facility that qualify for the Kentucky facility credit.
  • Replacement Property Exclusion
    The statutory rule preventing businesses from claiming the Kentucky facility credit on equipment bought simply to replace old, similar equipment.
  • 10-Year Carryforward
    Kentucky’s provision allowing taxpayers to apply unused research facility credits to future tax liabilities for up to ten years.
  • Priority Ordering of Credits
    The specific sequence dictated by Kentucky law for applying various tax credits, including the R&D facility credit, against tax liability.
  • Schedule TCS
    The Tax Credit Summary schedule used to claim the nonrefundable research facility credit on a Kentucky corporate or individual tax return.
Louisiana
  • LA R.S. 47:6015
    The Louisiana Revised Statute that legally authorizes and outlines the state’s Research and Development Tax Credit.
  • Louisiana Economic Development (LED)
    The state agency responsible for reviewing applications, certifying eligible research, and issuing credit approvals.
  • Pre-Approval Certification
    The strict mandate that a taxpayer must apply for and receive a certification letter from LED before claiming the credit on a tax return.
  • Expenditure Verification Report
    An independent audit report required by LED for businesses claiming large credit amounts to prove the validity of their QREs.
  • SBIR / STTR Grants
    Federal grants that uniquely qualify Louisiana businesses to receive a specialized tax credit equal to 30% of the grant amount received.
  • Transferable Credit (SBIR/STTR)
    The provision allowing Louisiana businesses that earn the specific SBIR/STTR credit to sell or transfer it to another taxpayer.
  • $12 Million Statewide Cap
    The total amount of R&D tax credits Louisiana is authorized to issue annually, managed by LED.
Maine
  • Research Expense Tax Credit
    Maine’s primary corporate income tax credit designed to encourage businesses to increase their research activities within the state.
  • Title 36 § 5219-K
    The section of the Maine Revised Statutes that codifies the standard Research Expense Tax Credit.
  • 5% Credit Rate
    The calculation rate Maine applies to qualified research expenses that exceed the taxpayer’s calculated base amount.
  • $25,000 Tax Liability Rule
    A limitation stating the credit can offset 100% of the first $25,000 of Maine tax liability, but only 75% of the tax liability exceeding that amount.
  • 15-Year Carryover
    Maine’s statutory allowance to carry forward any unused, nonrefundable Research Expense Tax Credits for up to 15 succeeding tax years.
  • Super Credit (§ 5219-L)
    A historical, enhanced Maine tax credit designed to reward companies that significantly exceeded their historical R&D spending averages.
  • Programming Sales Tax Exemption
    A related Maine tax incentive that exempts the sale of custom computer programming services from state sales tax.
Maryland
  • General Code Section 10-721
    The Maryland statutory code that establishes the dual-structured Basic and Growth Research and Development Tax Credits.
  • Department of Commerce (DOC)
    The state agency responsible for evaluating applications, certifying R&D activity, and allocating the capped tax credits.
  • Basic R&D Credit (3%)
    Maryland’s baseline credit calculated at 3% of eligible R&D expenses that do not exceed the Maryland Base Amount.
  • Growth R&D Credit (10%)
    Maryland’s enhanced credit calculated at 10% of eligible R&D expenses that strictly exceed the Maryland Base Amount.
  • November 15th Deadline
    The strict annual deadline by which a business must submit its R&D credit application to the Maryland Department of Commerce.
  • Small Business Refundability
    A provision allowing Maryland companies that meet the “Small Business” net book value definition to receive their R&D credit as a cash refund.
  • Single Applicant Limit ($250,000)
    The maximum total credit amount any single applicant can be awarded by the Department of Commerce in a given tax year.
Massachusetts
  • M.G.L. c. 63, § 38M
    The Massachusetts General Law section that legally establishes the state’s Research Credit against the corporate excise tax.
  • Department of Revenue (DOR)
    The state agency responsible for overseeing corporate excise taxes and the administration of the Massachusetts R&D credit.
  • 10% Credit Rate
    The standard Massachusetts calculation rate applied to qualifying research expenditures that exceed the taxpayer’s established base amount.
  • Alternative Simplified Credit (ASC)
    A specific Massachusetts calculation method available to taxpayers, distinctly codified under § 38M(b).
  • $25,000 Liability Cap
    The statutory limit allowing a corporation to offset 100% of its first $25,000 of excise tax, but only 75% of the liability exceeding that amount.
  • Schedule RC
    The mandatory Massachusetts tax schedule used by businesses to calculate and claim their state Research Credit.
  • MLSC Tax Incentive Program
    An enhanced, heavily regulated R&D tax credit specifically available to certified Massachusetts life sciences companies.
  • Indefinite Carryover
    A specific Massachusetts provision allowing credits disallowed strictly by the 75% liability cap to be carried forward infinitely.
Michigan
  • Public Acts 186 & 187 of 2024
    The landmark Michigan legislation that restored and formally established the state’s modern R&D tax credit program.
  • MCL § 206.677
    The section of the Michigan Compiled Laws codifying the authorized R&D tax credit against the Corporate Income Tax.
  • 15% Small Business Rate
    The enhanced credit rate applied to the excess QREs of Michigan businesses with fewer than 250 employees.
  • 10% Large Business Rate
    The standard credit rate applied to the excess QREs of Michigan businesses with 250 or more employees.
  • University Collaboration Credit
    An additional 5% credit offered to Michigan businesses conducting qualified research in formal partnership with a Michigan research university.
  • Tentative Claim
    The mandatory pre-filing process required by the Michigan Department of Treasury by March 15th to reserve a portion of the statewide credit cap.
  • $100 Million Statewide Cap
    The total amount of R&D tax credits Michigan is legally authorized to distribute annually across all eligible taxpayers.
Minnesota
  • Credit for Increasing Research Activities
    Minnesota’s official state tax credit designed to offset corporate franchise or individual income taxes for qualifying R&D investments.
  • Minnesota Statutes 290.068
    The specific legislative statute establishing the rules and calculation mechanics for the Minnesota R&D credit.
  • Two-Tiered Rate Structure
    Minnesota’s calculation framework applying a 10% rate to the first $2 million of qualifying expenses and a 4% rate to anything above that threshold.
  • Minnesota Sales or Receipts
    The state-apportioned gross receipts metric required to accurately calculate a taxpayer’s Minnesota base amount.
  • Schedule RD
    The mandatory tax schedule used by corporate and individual taxpayers to calculate the Minnesota R&D tax credit.
  • Schedule KPI
    The specific Minnesota tax schedule used to allocate flow-through R&D credits to partners in a partnership.
  • Refundability Rate
    Historical rules governing the specific percentage of excess Minnesota R&D credits that can be claimed as a direct cash refund.
Mississippi
  • R&D Skills Tax Credit
    Mississippi’s unique tax incentive rewarding businesses for employing full-time workers requiring specific scientific or technical skills.
  • Miss. Code Ann. § 57-73-21
    The Mississippi Code section establishing the enterprise and skills-based R&D tax credits.
  • Mississippi Development Authority (MDA)
    The state agency responsible for reviewing applications and certifying jobs for the R&D Skills Tax Credit.
  • SMART Act
    The Strengthening Mississippi Academic Research Through Business Act, which established a rebate for academic research investments.
  • Academic Research Investor Rebate
    A 25% rebate granted to businesses incurring qualified research costs under a formal agreement with a Mississippi college or university.
  • 50% Utilization Limit
    The restriction preventing a business from using the R&D Skills Tax Credit to offset more than 50% of its Mississippi income tax liability.
  • SMART Business Certificate
    The official documentation required from the Mississippi Department of Revenue to claim the SMART academic research rebate.
Missouri
  • RSMo 620.1039
    The Missouri Revised Statute authorizing the state’s R&D tax credit for qualified research expenses.
  • Department of Economic Development (DED)
    The state agency responsible for reviewing, authorizing, and issuing Missouri R&D tax credit certificates.
  • House Bill 2400
    The pivotal Missouri legislation that recently reinstated and expanded the state’s R&D tax credit program.
  • $10 Million Annual Program Cap
    The total statutory limit on R&D tax credits the state of Missouri can authorize per calendar year.
  • $300,000 Maximum Credit Per Taxpayer
    The strict annual limit restricting any single company from receiving more than $300,000 in Missouri R&D credits.
  • 12-Year Carry Forward Period
    The provision allowing Missouri taxpayers to apply unused R&D credits to future corporate income tax liabilities for up to 12 years.
  • Tax Credit Transfer or Sale
    Missouri’s allowance for businesses to sell, assign, or transfer their earned R&D tax credits to other taxpayers.
Nebraska
  • Nebraska Advantage R&D Act
    The legislative framework establishing Nebraska’s tax incentives for businesses increasing their research activities.
  • 15% Base Credit Rate
    The standard calculation rate applied to a company’s qualifying research and experimental expenditures in Nebraska.
  • 35% University Campus Credit Rate
    An enhanced tax credit rate for research activities specifically conducted on a Nebraska college or university campus.
  • Form 3800N
    The comprehensive Nebraska tax form suite used to calculate and claim various state incentives, including the R&D credit.
  • Worksheet RD
    The specific supporting schedule used to detail and compute the Nebraska R&D credit amounts before transferring to Form 3800N.
  • Quarterly Refund Claim
    Nebraska’s mechanism allowing businesses to claim their refundable R&D credits against sales and use taxes paid throughout the year.
  • E-Verify Requirement
    A strict mandate requiring businesses to electronically verify the work eligibility of employees to claim the Nebraska R&D credit.
New Hampshire
  • RSA 77-A:5, XIII
    The section of the New Hampshire Revised Statutes Annotated that legally creates the Research and Development tax credit.
  • Qualified Manufacturing R&D
    New Hampshire specifically mandates that qualified research expenses must be tied to manufacturing activities conducted within the state.
  • $7,000,000 Aggregate Credit Limit
    The total statewide cap on R&D credits the New Hampshire Department of Revenue Administration can award annually.
  • $50,000 Taxpayer Credit Limit
    The firm statutory limit on the amount of R&D credit any single taxpayer can receive in a given tax year in New Hampshire.
  • June 30 Application Deadline
    The strict, non-extendable annual deadline for submitting the New Hampshire R&D credit application.
  • Form DP-165
    The required application form submitted to the New Hampshire Department of Revenue Administration to request the R&D tax credit.
  • Business Profits Tax (BPT)
    One of the two primary New Hampshire business taxes against which the R&D credit can be applied to offset liability.
New Jersey
  • N.J.S.A. 54:10A-5.24
    The specific New Jersey statute codifying the state’s R&D tax credit under the Corporation Business Tax Act.
  • Corporation Business Tax (CBT)
    The primary New Jersey corporate income tax against which the state’s R&D tax credit is applied.
  • 10% Credit Percentage
    The standard New Jersey calculation rate applied to qualifying state research expenditures exceeding the base amount.
  • Form 306
    The official New Jersey Division of Taxation schedule used by corporations to calculate and claim the R&D tax credit.
  • 7-Year Carry Forward
    The standard statutory period allowing most New Jersey businesses to carry unused nonrefundable R&D credits forward.
  • 15-Year Carry Forward (Targeted)
    An extended carryforward period granted to New Jersey businesses operating in specific targeted high-tech or life sciences industries.
  • NJEDA Tax Certificate Transfer Program
    A state program enabling unprofitable New Jersey technology or biotechnology companies to sell their R&D tax credits for cash.
New Mexico
  • Technology Jobs & R&D Tax Credit Act
    The foundational New Mexico legislation creating basic and additional tax credits for qualifying research expenditures.
  • Qualified Facility
    The statutory definition of a building or location in New Mexico where authorized research and development takes place.
  • Additional R&D Tax Credit
    A supplemental New Mexico credit available to taxpayers that increase their base payroll expenses for qualified research.
  • Rural Doubling
    A unique provision that doubles the R&D tax credit rate for qualified facilities located in designated rural areas of New Mexico.
  • Form RPD-41385
    The mandatory application form filed with the New Mexico Taxation and Revenue Department to claim the basic and additional R&D credits.
  • Form RPD-41243
    The state tax schedule utilized to apply approved New Mexico R&D credits against gross receipts or compensating taxes.
  • Form RPD-41298
    The New Mexico tax schedule used to apply the approved R&D tax credits against personal or corporate income tax liabilities.
New York
  • Article 9-A Framework
    The section of the New York State tax law governing corporate franchise taxes and the application of state R&D credits.
  • Excelsior Jobs Program
    A discretionary New York economic development program offering a fully refundable R&D tax credit for targeted industries.
  • Empire State Development (ESD)
    The New York State agency responsible for administering the Excelsior Jobs Program and issuing credit certificates.
  • Certificate of Tax Credit
    The mandatory document issued by Empire State Development required to claim the Excelsior Jobs Program R&D credit on a tax return.
  • Life Sciences R&D Tax Credit
    A highly specific, fully refundable New York tax credit designed for new businesses conducting life sciences research.
  • Qualified Life Sciences Company
    The rigorous state certification standard a business must meet to be eligible for the New York Life Sciences R&D Tax Credit.
  • Form CT-648
    The official New York State corporate tax form used to calculate and claim the Life Sciences Research and Development Tax Credit.
North Dakota
  • NDCC 57-38-30.5
    The specific section of the North Dakota Century Code establishing the state’s research and experimental expenditure tax credit.
  • Tiered Credit Rates
    North Dakota’s structure applying a 25% credit to the first $100,000 of excess QREs, and a lesser rate to amounts exceeding that threshold.
  • Primary Sector Certification
    A specific state business designation that, if obtained, allows a taxpayer to sell or transfer their North Dakota R&D credits.
  • Credit Transferability
    The provision permitting certified North Dakota primary sector businesses to sell up to $100,000 of their R&D tax credits to another taxpayer.
  • Form SFN 58638
    The North Dakota Office of State Tax Commissioner form used to elect to sell, transfer, or assign the state R&D tax credit.
  • Alternative Excess R&D Expenses
    A specialized North Dakota calculation mechanism parallel to the federal Alternative Simplified Credit (ASC) method.
  • 15-Year Carryforward
    The statutory rule allowing taxpayers to push unused, nonrefundable North Dakota R&D tax credits into up to 15 future tax years.
Ohio
  • ORC 5751.51
    The section of the Ohio Revised Code outlining the nonrefundable R&D investment tax credit.
  • Commercial Activity Tax (CAT)
    The primary Ohio gross receipts tax against which the state’s R&D investment credit is directly applied.
  • 7% Credit Mechanism
    The statutory rate utilized by Ohio, calculated at 7% of the amount by which qualified expenses exceed the three-year average.
  • Job Creation Tax Credit (JCTC)
    A distinct, refundable Ohio incentive for businesses creating new jobs, which often interacts strategically with the R&D credit.
  • Ohio Tax Credit Authority
    The independent board responsible for reviewing and approving economic development incentives in Ohio.
  • R&D Machinery Exemption
    A parallel state incentive providing an exemption from Ohio sales and use tax for machinery and equipment used primarily for R&D.
  • Blanket Exemption Certificate
    The formal documentation provided to vendors to waive sales tax on eligible R&D equipment purchases in Ohio.
Oklahoma
  • R&D Rebate Program
    Oklahoma’s transition from a standard nonrefundable tax credit to a specialized program that issues direct rebates for qualifying R&D expenditures.
  • Title 68 Section 2357.32
    The historical Oklahoma statutory code that originally governed the state’s R&D tax credit before it was repealed and restructured.
  • Senate Bill 324
    The pivotal Oklahoma legislation that amended the state’s R&D incentives and modified the structures for claiming rebates.
  • Oklahoma Tax Commission (OTC)
    The state governing authority responsible for reviewing applications, processing forms, and issuing the R&D rebate payments.
  • 5% Rebate Percentage
    The standard calculation rate applied to a company’s qualifying research and development expenditures to determine the Oklahoma rebate amount.
  • Biomedical Cancer Research Credit
    A highly specialized Oklahoma tax credit rewarding businesses for donations or qualified expenditures specifically related to biomedical and cancer research.
  • Credit Transfer
    The mechanism by which certain legacy or specific Oklahoma tax credits can be legally sold or transferred to other taxpayers with state tax liability.
Oregon
  • ORS 317.152
    The Oregon Revised Statute that traditionally codified the state’s standard corporate tax credit for increasing research activities.
  • Semiconductor R&D Tax Credit
    A highly targeted Oregon tax incentive specifically designed to reward research, development, and manufacturing strictly within the semiconductor industry.
  • Business Oregon
    The state economic development agency responsible for reviewing applications and certifying eligibility for the semiconductor R&D tax credit.
  • Qualified Semiconductor Company
    The mandatory state designation a business must obtain to legally claim the Oregon semiconductor-specific research and development credit.
  • 15% Applicable Percentage
    The base calculation rate applied to a qualified semiconductor company’s eligible research and experimental expenditures in Oregon.
  • Biennium Caps
    The legislative ceiling placed on the total aggregate amount of semiconductor tax credits Oregon can award during a two-year budget cycle.
  • Scientific Equipment Donations
    A related Oregon tax credit rewarding corporations that donate sophisticated scientific equipment to eligible educational institutions within the state.
Pennsylvania
  • Article XVII-B
    The specific section of the Pennsylvania Tax Reform Code of 1971 that legally establishes the state’s Research and Development Tax Credit.
  • DCED & DOR
    The Department of Community and Economic Development and the Department of Revenue, which jointly administer the Pennsylvania R&D credit program.
  • myPATH System
    The mandatory online portal utilized by the Pennsylvania Department of Revenue for submitting R&D tax credit applications and managing allocations.
  • $60 Million Annual Cap
    The maximum aggregate limit on R&D tax credits Pennsylvania is authorized to award across all taxpayers in a single fiscal year.
  • Small Business Allocation
    A specific, protected carve-out within the $60 million statewide cap that is exclusively reserved for qualified Pennsylvania small businesses.
  • Credit Assignment
    The formal, legal process allowing Pennsylvania companies with no state tax liability to sell or assign their approved R&D credits to another taxpayer.
  • Tax Clearance Mandates
    The strict compliance requirement that a business must have zero outstanding state tax liabilities to successfully receive the Pennsylvania R&D credit.
Rhode Island
  • Section 44-32-3
    The Rhode Island General Law that establishes the state’s primary tax credit for increasing research and development expenses.
  • R&D Property Credit
    A distinct Rhode Island tax credit (Section 44-32-2) available for the purchase of tangible property and equipment used exclusively for R&D.
  • Tangible Property Standards
    The strict state guidelines defining the useful life, depreciation rules, and physical location requirements for assets claiming the R&D Property Credit.
  • Form RI-7695E
    The official Rhode Island Division of Taxation tax schedule utilized by businesses to calculate and claim the R&D expense credit.
  • One-Year Write-Off
    An elective provision allowing Rhode Island taxpayers to fully deduct the cost of qualifying R&D facilities in a single year, in lieu of the property credit.
  • Seven-Year Carryover
    The statutory timeframe allowing taxpayers to roll unused Rhode Island R&D expense credits forward to offset tax liability for up to seven years.
  • Business Corporation Tax
    The primary Rhode Island entity-level tax liability against which the R&D expense and property credits are applied.
South Carolina
  • Corporate License Fees
    A specific South Carolina business tax liability that can be legally offset by the state’s R&D tax credit under Section 12-20-50.
  • Schedule TC-18
    The mandatory South Carolina Department of Revenue tax form used by corporations and pass-throughs to calculate the state research credit.
  • 50% Tax Liability Limitation
    The strict statutory rule preventing a business from using the R&D credit to offset more than 50% of its remaining South Carolina income tax liability after other credits.
  • 10-Year Carryforward
    The legal provision allowing South Carolina taxpayers to roll any unused, nonrefundable R&D credits forward for up to ten succeeding tax years.
  • Proportionate Reduction of Refund
    The complex allocation mechanisms utilized by the state when total claimed R&D credits threaten to exceed the statutory statewide budget limits.
  • License Fee Interaction
    The specific rules governing how the R&D credit is applied sequentially against the corporate income tax versus the corporate license fee.
  • Corporate Income Tax Act
    The comprehensive South Carolina legislative framework that establishes the state’s 5% credit on qualified research expenses.
Texas
  • Form 05-158
    The standard Texas Franchise Tax Report upon which the calculated state research and development tax credit is formally applied.
  • Form 05-178
    The mandatory Research and Development Activities Credits Schedule used to calculate the Texas credit and track carryforwards.
  • Tax Code Section 171.651
    The foundational Texas statute that defines qualified research expenses and sets the parameters for the franchise tax credit.
  • Sales & Use Tax Exemption
    A separate Texas incentive allowing businesses to forgo paying state sales tax on depreciable tangible personal property used directly in qualified R&D.
  • Subchapter M Framework
    The chapter of the Texas Tax Code explicitly establishing the parameters, rates, and limitations of the R&D franchise tax credit.
  • 50% Franchise Tax Limitation
    The Texas statutory rule restricting businesses from offsetting more than 50% of their franchise tax liability using R&D credits in a single year.
  • Higher Education Enhanced Rate
    A provision increasing the standard 5% credit rate up to 6.25% for eligible R&D expenditures paid to Texas institutions of higher education.
Utah
  • Utah Code 59-7-612
    The legislative statute establishing Utah’s nonrefundable corporate franchise tax credit for increasing research activities.
  • Pass-Through Tax Credit
    The specific Utah tax code (59-10-1012) enabling partnerships and S-corporations to pass the R&D credit through to individual owners.
  • Machinery & Equipment Credit
    A separate Utah tax incentive providing a credit for the purchase of specialized machinery and equipment used primarily for conducting R&D.
  • 14-Year Carryforward
    The statutory allowance permitting Utah taxpayers to apply unused incremental R&D credits to future tax liabilities for up to 14 consecutive years.
  • Volume Credit Prohibition
    A strict Utah restriction stating that the base “volume” component of the R&D credit cannot be carried forward to future years if unused.
  • Incremental R&D Credit
    The 5% credit calculation applied to Utah research expenses that exceed the established base amount for the current taxable year.
  • Corporate Franchise Tax
    The primary Utah business tax liability against which the calculated state research activities credit is officially applied.
Vermont
  • Form BA-404
    The required Vermont Department of Taxes form used by businesses to calculate and declare the state’s R&D tax credit.
  • Department of Taxes
    The Vermont state agency responsible for auditing R&D claims, verifying eligible expenditures, and enforcing compliance.
  • Claimant Name Publication
    A unique Vermont transparency mandate requiring the state to publicly publish the names of corporations that claim the R&D tax credit.
  • Chapter 151 Tax Imposed
    The statutory code detailing the Vermont corporate income tax structure that the state’s R&D credit is designed to offset.
  • Vermont Apportionment
    The calculation methodologies utilized to ensure only the percentage of R&D expenses physically incurred inside Vermont are claimed.
  • Nonrefundability Impact
    Vermont’s strict rule that the R&D credit can only reduce tax liability to zero; it cannot be issued as a cash refund to the taxpayer.
  • 10-Year Carryforward
    The Vermont legislative allowance for taxpayers to carry forward any unused R&D tax credits for a period of up to ten succeeding years.
Wisconsin
  • Wis. Stat. § 71.07(4k)
    The primary section of the Wisconsin Statutes that legally establishes the state’s corporate and individual tax credit for increasing research activities.
  • Schedule R
    The mandatory tax schedule utilized by the Wisconsin Department of Revenue for businesses to calculate and formally claim the state research expense credit.
  • 2.875% Rate for New Claimants
    A specific, alternative calculation rate available in Wisconsin for businesses that do not have a prior history of qualified research expenses.
  • Refundable Percentage
    A unique Wisconsin provision allowing up to 10% of a taxpayer’s approved R&D credit to be claimed as a fully refundable cash payment if it exceeds tax liability.
  • Internal Combustion Engine Credit
    An enhanced, targeted Wisconsin R&D tax credit offering higher rates for research specifically related to designing internal combustion engines or their substitutes.
  • Energy Efficient Products Credit
    A specialized Wisconsin incentive offering an increased credit rate for research aimed at developing energy-efficient lighting, building automation, or hybrid vehicle technologies.
  • 15-Year Carryforward
    The statutory rule allowing Wisconsin taxpayers to push the remaining 90% nonrefundable portion of their R&D credit forward for up to 15 consecutive tax years.
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