Research and Development Tax Credit

Allows companies holding qualifying Research and Development Tax Credits to apply for approval to sell those tax credits and assign them to the buyer(s).

Guidelines

• rdtaxcredittransferguidelines04.pdf

Uses

Applied research and development expenditures

Funding

10% tax credit of company’s increased research and development expenses over a base period (prorated to not exceed $15 million annual cap for all businesses); Up to 20% of total pool set aside for small businesses

Eligibility

Businesses qualifying for the federal Research and Development tax credit and making research and development investments in Pennsylvania

Terms

Applicable to CNI, CSFT and PIT tax liability; Unused credits may be carried over for up to 15 succeeding taxable years

Where to Apply

Pennsylvania Department of Revenue

Purpose of Funding

• Research & Development