Must apply through New Mexico Credit Taxation and Revenue Department; Credit only available to small businesses
Special Considerations
Indefnite
Unused Credits
Partial
Refundable/
Saleable
16.9% - 22.5%
Credit Rate
[STATE]
No Credit
N/A
N/A
None
R&D Tax Credits
Alabama
None
20 years
No
18%
Alaska
None
15 years
Partial
15% - 24%
Arizona
Application must be filed and approved before companies can claim the credit
9 years
No
20% - 33%
Arkansas
None
Indefinite
No
15%
California
Colorado offers an Enterprise Zone Research and Development Tax Credit
Indefinite
No
3%
Colorado
Two credits are available to be claimed by C corporations: Incremental (Schedule RC) and Non-Incremental (Schedule RDC); Credits are refundable for small businesses
15 years
Partial
Connecticut
None
N/A
Yes
10% - 20%
Delaware
Must apply through Florida Department of Revenue
5 years
No
10%
Florida
May be used against payroll taxes
10 years
No
10%
Georgia
Must apply through Hawaii Department of Business, Economic Development and Tourism Department
None
Yes
Pro-Rata
Hawaii
None
14 years
No
5%
Idaho
None
5 years
No
6.5%
Illinois
None
10 years
No
10% - 15%
Indiana
Must be engaged in Manufacturing, Life Sciences, Software Engineering or Aviation & Aerospace
None
Yes
4.5% - 6.5%
Iowa
Credit only available to corporations
Indefinite
No
6.5%
None
N/A
N/A
No Credit
Kentucky
Application must be filed by certain types of businesses and approved before companies can claim the credit
5 years
No
5% - 30%
Louisiana
None
15 years
No
7.5%
Maine
Must apply through Maryland Department of Commerce; Small businesses (net assets under $5M) can claim refundable credit
7 years
Partial
10%
Maryland
Two calculation methods available: 1) Fixed-Ratio and 2) Alternate Simplified for tax years beginning on or after January 1, 2015
15 years
No
7.5% - 10%
None
N/A
N/A
No Credit
Michigan
None
15 years
No
4% - 10%
Minnesota
None
N/A
N/A
No Credit
Mississippi
Newly enacted for tax years beginning on or after 1/1/2023
12 years
Yes
15% - 20%
Missouri
None
N/A
N/A
No Credit
Montana
Credit may be used to obtain a refund of sales and use taxes paid
20 years
Yes
15%
Nebraska
None
N/A
N/A
No Credit
Nevada
Must apply through New Hampshire Department of Revenue Administration; Application must be submitted and postmarked no later than June 30; Credit limited to $50,000 per year
5 years
No
10%
New Hampshire
Credit only available to corporations; Certain taxpayers in a loss position may sell the credits to other taxpayers in NJ; Additional criteria must be met to sell R&D credits
7 years
Partial
10%
New Jersey
Must apply through New Mexico Credit Taxation and Revenue Department; Credit only available to small businesses
3 years
Partial
5% - 10%
New Mexico
Must apply through Regional Empire State Development office; Credit only available to strategic businesses; Credits are part of the Excelsior program and many limitations apply
None
Yes
3% - 20%
New York
None
N/A
N/A
No Credit
North Carolina
Taxpayer may sell, transfer or assign up to $100,000 of unused credit
15 years
Partial
8% - 25%
North Dakota
None
7 years
No
7%
Ohio
None
N/A
N/A
No Credit
Oklahoma
None
N/A
N/A
No Credit
Oregon
Must apply through Pennsylvania Department of Revenue; Taxpayer may sell, transfer or assign unused credit
15 years
Yes
10% - 20%
Pennsylvania
Credit available to corporations, individuals, partnerships and S corporations
7 years
No
16.9% - 22.5%
Rhode Island
None
10 years
No
5%
South Carolina
None
N/A
N/A
No Credit
South Dakota
None
N/A
N/A
No Credit
Tennessee
Credit is limited if a sales and use tax exemption is claimed
20 years
No
5%
Texas
None
14 years
No
5% - 7.5%
Utah
None
10 years
No
27%
Vermont
Must apply through Virginia Department of Taxation; Taxpayers typically receive a prorated portion of credit applied for
10 years
Partial
10%
Virginia
None
N/A
N/A
No Credit
Washington
None
N/A
N/A
No Credit
District of Columbia
None
N/A
N/A
No Credit
West Virginia
None
15 years
Partial
5.75%
Wisconsin
None
N/A
N/A
No Credit
Wyoming
District of Columbia
Kansas
Massachusetts
2% - 20%