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Which States Offer the R&D Tax Credit

Learn about the State R&D Tax Credit, which States offer it, and if your Startup qualifies.

We first built Neo.Tax because we saw that far too many innovative startups were failing to claim the money they were owed via the Federal R&D Tax Credit. Today, we’re excited to announce that companies can now use Neo.Tax to prepare their State R&D Tax Credit as well!

What is the State R&D Tax Credit?

Like the Federal R&D Tax Credit, many states have a state-specific R&D credit to incentivize innovative companies to create jobs and products within their state. Currently, 38 states offer specific R&D credits — each differs slightly, but many follow similar frameworks to the Federal R&D Tax Credit when it comes to Qualified Expenses and deadlines.

Which States Currently Offer an R&D Tax Credit?

Currently, 38 states offer their own R&D Tax Credit in an effort to incentivize job creation, business profits, and as a means to stimulate the local economy. Those states are:

Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Mississippi, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas, Utah, Vermont, Virginia, Wisconsin.

While each state has different rules on which expenses qualify, what type of companies can file for the credit, and how much the credit is worth, it’s always valuable for a company to claim every R&D credit they’re owed. Go to Neo.Tax and we can help calculate how much you’re owed and help you prepare your R&D tax credits today!

What is the Deadline to File?

In almost every state, the deadline to file for the R&D credit is the same as the deadline for filing your state tax return. However, Arkansas, Delaware, Florida, Maryland, New Hampshire, Pennsylvania, and Virginia all allow for different filing deadlines.

Pro Tip: Don’t procrastinate on preparing your R&D tax credit. Have it ready for when your accountant files your tax return. Neo.Tax has streamlined the process to make it simple and fast to file today.

What Companies are Eligible for State R&D Credits?

Most of the 38 participating states allow C-Corporations, S-Corporations, LLCs, and Partnerships to file for their State R&D Tax Credit. However, Connecticut, Florida, and Rhode Island allow only C-Corporations to file for their State R&D Tax Credits and Massachusetts allows for only C-Corporations and S-Corporations to file.

How Much Money Am I Owed via My State R&D Credits?

Each state is unique in what they offer for R&D credits. We recommend you reach out to Neo.Tax to find out how much you could possibly get for your Federal and State R&D tax credits. We’ve built a tool to make the process painless and simple so you can go through on your own or be guided by our tax experts. Get started today!