Arizona R&D Tax Credit Summary

R&D Tax Credit Available

Yes

STATE

Arizona

NAME

Credit for Increased Research Activities

DOES IT APPLY TO C-CORPS & PASS THROUGHS?

This credit is available to corporate taxpayers, corporate partners, exempt organizations subject to corporate income tax on unrelated business taxable income (UBTI), or S corporation shareholders.

DESCRIPTION

Nonrefundable credit with similar definition to federal for Qualified Research Expenses and Qualified Research Activities, except only include Arizona-based expenses. Credit follows federal regular credit computation and requires a base computation.

PERCENTAGE

Credit percentage: 24% on incremental expenses over base amount if taxpayer has $2.5MM or less in qualified QREs, 15% if over.