Businesses
Government-funded
Varies
Amount varies
Tax Credit
Reduces tax liability
Rolling
No fixed cutoff
Annual tax return
Claim with year-end filing
Moderate
File with tax return
California offers a 15% tax credit on qualifying in-house R&D expenditures above a base amount, and 24% for small businesses. The credit is permanent and uncapped, making California one of the most R&D-friendly states for technology companies.
Do I qualify?
Answer the questions below for a rules-based self-assessment of your fit for this program. This is informational — final determinations are made by the administering agency.
1.Business pays California income or franchise taxes
2.Qualifying R&D must be conducted in California
3.Small business: gross receipts ≤$1M in prior year for enhanced 24% rate
4.Must document wages, supplies, contract research expenses
5.Credit can be carried forward indefinitely if unused
Utah OEO · Utah
30% state income tax credit on new employee wages for businesses creating 5+ jobs in rural Utah Economic Opportunity Zones. Meaningful incentive to locate outside Salt Lake's urban corridor, with a 5-year credit period.
OEDIT · Colorado
3% state income tax credit for businesses investing in business personal property in Colorado's 16 Enterprise Zones, which cover the state's most economically distressed rural and urban areas. Stacks with other CO Enterprise Zone credits for wage, research, and job training.
CAEATFA · California
Full state and local sales and use tax exemption (7.25–10%) on equipment purchases for California manufacturers of solar, wind, batteries, EVs, fuel cells, and green building materials. Reduces equipment procurement costs with board pre-approval.