Research and development tax credit

Businesses conducting significant research and development are eligible for a tax credit. To receive this credit, the research must be in new technology and 80% of your activities must be in experimentation. The Research and Development tax credit does not apply to:

  • outside California
  • Behavioral or social science testing
  • Ordinary testing for quality control
  • Market or consumer research
  • Research related to style, taste, cosmetic or seasonal designed
  • Research to find mineral deposits
The credit is for 15% of the increased research and development over a base period. For more information about the research and development tax credit, visit http://www.ftb.ca.gov/forms/misc/1082.pdf