California and the Research and Development (R&D) Tax Credit
State Credit Name: California Research Credit
Expiration Date: Permanent
Who Can Apply? Corporations and flow-through entities. S-Corps can only claim up to 1/3 against entity level tax, the rest may be passed through to shareholders and owners.
Credit Carry Forward: Unlimited carry forward, but no carry back.
About the Credit:
The California Research Credit rate is 15% and it adopts the federal definition of qualified research activities and qualified research expenses. It is limited to research activities conducted in California.
Notes: The credit is calculated by comparing the taxpayer’s QRE’s to their gross receipts. The California Research Credit defines gross receipts as receipts from the sale of real, tangible, or intangible property held for sale to customers in the ordinary course of the taxpayer’s trade or business that is delivered or shipped to a purchaser in California. The difference between the taxpayer’s gross receipts and qualified research expenses can significantly maximize the credit.
Are you eligible?
Why choose us?
Pass an Audit?
Swanson Reed in California provides R&D tax credit consulting and advisory services to Pasadena, Los Angeles, San Diego, San Jose, San Francisco, Fresno, Sacramento, Long Beach, Oakland, Bakersfield, Anaheim, Santa Ana, Riverside, Stockton, Chula Vista, Irvine, Fremont, San Bernardino, Modesto, Oxnard and Fontana.
If you have any questions or need further assistance, please call us on (800) 986 4725.
Feel free to book a quick teleconference with one of R&D tax specialists at a time that is convenient for you, if you would like to learn more about R&D tax credit opportunities.
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