R&D Tax Credit Benefits: State Tax Incentives
Filing state tax returns in the following jurisdictions (state specific R&D tax credit opportunities):
• Alaska
• Arizona*
• Arkansas*
• California**
• Colorado
• Connecticut*
• Delaware*
• Florida
• Georgia*
• Hawaii*
• Idaho
• Illinois
• Indiana
• Iowa*
• Kansas
• Kentucky
• Louisiana
• Maine
• Maryland*
• Massachusetts
• Michigan
• Minnesota
• Nebraska*
• New Hampshire
• New Jersey*
• New Mexico
• New York
• North Dakota*
• Ohio
• Pennsylvania*
• Rhode Island
• South Carolina
• Texas
• Utah
• Vermont
• Virginia*
• Wisconsin
*These states may provide refundable (refund cash payments for credits in excess of tax liability) R&D tax credits, permissible sale / transfer of unused R&D credits to third-parties, or payroll tax offset opportunities.
**On February 9, 2022, the California governor Gavin Newsom signed Senate Bill 113 (S.B. 113), which restores the net operating loss (NOL) deduction and eliminates the $5 million annual cap on business incentive tax credits, effective for tax years beginning on or after January 1, 2022. When initially enacted in 2020, the NOL suspension and credit limit applied to tax years 2020, 2021, and 2022. However, S.B. 113 removes the credit limit and restores the NOL deduction for the 2022 tax year.