Vermont R&D Tax Credit Explained for Businesses

Vermont and the R&D Tax Credit

State Credit Name: Vermont R&D Tax Credit

Expiration Date: Indefinite

Who Can Apply? Corporations and flow-through entities that have QRE’s incurred in Vermont

Credit Carry Forward: Unused credits can be carried forward 10 years.

About the Credit: The credit is equal to 27% of the federal credit for expenditures made in Vermont.

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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 300 Interstate Corporate Ctr, Williston, Vermont provides R&D tax credit consulting and advisory services to Burlington, South Burlington, Rutland, Barre and Montpelier.

If you have any questions or need further assistance, please call or email our local Vermont Partner on (802) 778-1133.
Feel free to book a quick teleconference with one of our Vermont 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.

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Vermont R&D Tax Credit Filing Instructions

To claim the Research and Development (R&D) tax credit in Vermont, businesses must first claim the federal R&D tax credit for the same taxable year, as the Vermont credit is calculated as a percentage of the federal amount. Specifically, the Vermont R&D tax credit is equal to 27% of the federal tax credit allowed for qualified research and development expenditures (QREs) incurred within the state of Vermont. If your federal credit includes expenditures from other states, you must apportion the credit to only include those expenses related to research activities conducted in Vermont. This credit can be applied against Vermont personal income tax or business/corporate income tax, and any unused credit can be carried forward for up to ten years.
To make the claim, you generally need to file Form BA-404, Vermont Research and Development Tax Credit along with your Vermont tax return. You will need to provide data on your federal QREs and your Vermont QREs to compute the credit.

R&D Tax Credit Training for VT CPAs

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R&D Tax Credit Training for VT CFPs

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R&D Tax Credit Training for VT SMBs

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Vermont Patent of the Year – 2024/2025

OVR Tech LLC has been awarded the 2024/2025 Patent of the Year for their innovative approach to sensory immersion. Their invention, detailed in U.S. Patent No. 11883739, titled ‘Replaceable liquid scent cartridge’, introduces a modular system that enhances virtual and augmented reality experiences by integrating olfactory stimuli.

OVR Tech’s patented system enables users to experience scents within digital environments through a replaceable cartridge mechanism. Each cartridge contains multiple chambers filled with scented media, which are released via aerosol generators controlled by a computing unit. This design allows for the simultaneous emission of multiple scents, creating complex olfactory experiences that correspond with virtual scenarios.

The integration of scent into virtual reality is poised to revolutionize various sectors. In therapeutic settings, it can aid in exposure therapy for PTSD patients by recreating specific environments. For remote surgical training, the addition of scent can provide surgeons with more realistic simulations, potentially improving performance. Additionally, for visually impaired individuals, this technology offers a richer, more navigable virtual experience by engaging the sense of smell.

By making scent a dynamic component of digital interaction, OVR Tech is setting a new standard in immersive technology, paving the way for more engaging and realistic virtual experiences.