State R&D Tax Credits
Many states offer their own research credit on top of the federal one. This page explains how state credits tend to differ and where to confirm the rules, and we are adding a page for each state as we confirm them.
How state credits differ
A state credit usually follows the federal idea of rewarding research spending, but the details are the state's own. The definition of qualifying costs may differ, the method of calculation may differ, the credit may be limited in how it can be used or carried forward, and the forms and deadlines are the state's. Some states have no research credit at all. Some change their rules often. That variety is why this site does not try to cover every state, and why the pages we do publish link to official sources.
States
Texas R&D Franchise Tax Credit
Texas introduced a research credit against its franchise tax for periods starting in 2026. What to confirm and how the agent helps.
Learn moreArizona R&D Tax Credit
Arizona's research credit: where to confirm current rules.
Learn moreCalifornia R&D Tax Credit
California's research credit: where to confirm current rules.
Learn moreThings to check for any state
Your CPA or enrolled agent can confirm these. The state agency is the authority.
- Whether the state offers a research credit, and for which years.
- How the state defines qualifying research and costs, and whether it follows the federal definition.
- How the credit is calculated, and whether there are caps or limits.
- Whether unused credit can be carried forward, refunded or transferred.
- Which form to use, where to file and when it is due.
- Whether any registration or pre-approval is required.
How the agent helps with state credits
- 1
Use the same records
The evidence, costs and allocations captured for the federal credit are the starting point.
- 2
Draft state figures
Where a state is supported, the agent drafts state figures from those records.
- 3
Flag differences
Where state rules differ from federal ones, the agent shows what changes, for the reviewer to check.
- 4
Review
A licensed CPA or enrolled agent checks each state calculation against the state's current rules.
A worked example (illustrative)
This scenario is invented. A company with staff in two states has a federal claim and wonders about state credits. Its adviser checks each state: one has a credit, the other does not. For the first, the adviser confirms the rules and the form. The agent drafts the state figures from the federal records, and shows that one cost category counts federally but not in the state. The adviser adjusts the figure and the company files both returns through an authorized provider.
How we publish state pages
We add a page for a state when we can describe its credit accurately and link to the official source. Some pages are brief and say so: they point to the state agency and explain what the agent can do with the figures, while we confirm the rules. State rules change often, so any page here is a guide and not a substitute for the state agency or a CPA. Pages we have not yet confirmed are marked accordingly and are kept out of search results until they are ready.
State rules change often. These pages are a guide, not a substitute for the state agency or a CPA.
How we add a state page
- 1
Check the credit
We confirm that the state has a research credit and which years it covers.
- 2
Read the official source
We read the agency's own description and forms.
- 3
Write a plain summary
We summarize what the credit is for and who claims it, in our own words.
- 4
Link and date
We link the sources and note when we last checked.
Businesses with more than one state
A business with staff or operations in several states may have more than one state credit to consider, and each may follow different rules. A useful approach is to list the states where research work was done, ask your adviser which have a credit and gather the same evidence for all of them. The agent's records are organized by project, not by state, so you can show where the work happened. How costs are allocated between states is for your adviser to decide.
Why some state pages are hidden from search
State pages that we have not yet confirmed are kept out of search results, because it is better to say nothing than to publish something wrong. They remain on the site for people who follow a link, and they point to the official source. As each page is confirmed and expanded, it becomes eligible to appear in search results.
How to use these pages
- Find your state in the list. If it is there, read the summary and follow the link to the official source.
- If your state is not there, ask your adviser whether it has a credit and check the state agency's own pages.
- Take the figures from the agent as a draft and have your adviser check them against current state rules.
- Keep a note of the date you checked, because rules change.
What to watch for
State credits are more prone to change than federal ones, and details such as caps, eligibility and forms can move from year to year. Some states publish guidance late, some require an application before a claim, and some limit how a credit can be used. A good adviser keeps track of these. The most helpful thing you can do is to keep the underlying records in good order, so whichever way the rules move, the evidence is there.
State credit questions
Does every state have a research credit?
No. Some states have none, and the details vary. Check with your adviser and the state agency.
Can I claim a state credit without the federal one?
That depends on the state. Some tie their credit to the federal definition, and others do not. Your adviser can say.
Does the agent cover my state?
Coverage is limited and growing. If your state is not listed, tell us and we will say what is possible.
Where do I check current rules?
On the state agency's own pages, which each state page links to where available.
Please note: Estimates and drafts are prepared by software for review by a licensed CPA or enrolled agent. This is not tax advice.
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