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Arizona Research & Development Income Tax Credit

Arizona Department of Revenue (ADOR)AZ-RD
Max per Applicant

Varies

Maximum a single org can receive

Deadline

Rolling / No deadline

Jurisdiction

Arizona

About This Program

Provides a 24% income tax credit on the first $2.5 million of qualified R&D expenditures and 15% above that threshold, for R&D conducted in Arizona. Stacks with the federal R&D tax credit for significant combined benefit.

Key Requirements & Eligibility

  • 1R&D must be conducted in Arizona
  • 2Credit: 24% on first $2.5M of AZ QREs; 15% above $2.5M
  • 3Follows federal IRC Section 41 definition of qualified research
  • 4Credits may be carried forward 15 years
  • 5Available to corporations and pass-through entities

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Income tax credit for Arizona businesses conducting qualified research and development, with a base credit of 24% on R&D expenses up to $2.5M and 15% above that threshold.

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Apply or Learn More

Visit the official page to review full eligibility requirements and apply.

Official Source
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Applicable Industries

Research & DevelopmentTechnologyHealthcareManufacturing
Official Source