An update on company-financed research and development credits: a state-by-state comparison

Businesses seeking to locate or relocate their research and development (R&D) facilities can benefit from tax incentives offered by state governments across the US, particularly given the uncertain availability of the federal R&D tax credit. Such companies should remain cognizant of how much...

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Bibliographic Details
Published inThe CPA journal (1975) Vol. 83; no. 1; p. 40
Main Authors Billings, B. Anthony, Houston, Melvin
Format Journal Article
LanguageEnglish
Published New York New York State Society of Certified Public Accountants 01.01.2013
Subjects
Buildings and facilities
Business enterprises
Comparative analysis
Corporations
Excise taxes
Expenditures
Finance
Industrial research
Liability
Location analysis
R&D
Research & development
Research centers
Site selection
State government
State taxes
Tax credits
Tax deductions
Tax incentives
Taxation
Taxpayers
United States
United States
United States > US
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Summary:Businesses seeking to locate or relocate their research and development (R&D) facilities can benefit from tax incentives offered by state governments across the US, particularly given the uncertain availability of the federal R&D tax credit. Such companies should remain cognizant of how much each state offers in business incentives, such as a state R&D credit. This analysis compares the tax incentives offered by state governments to stimulate research and experimentation. For most states, the statutory rate of credit is not a good indicator of the R&D subsidy, because the incentive is reduced significantly after the applicable limitations are applied. States with high statutory credit rates are quite restrictive with respect to the types of costs that qualify for the credit and also impose a number of other restrictions. Companies and their advisors should carefully evaluate the terms of these tax credits, because the statutory rate of credit might not be a good indicator of the incentive being offered.
ISSN:0732-8435