PA’s Research and Development Tax Credit


Allows companies holding qualifying Research and Development Tax Credits to apply for approval to sell those tax credits and assign them to the buyer(s).


Applied research and development expenditures


  • Ten percent tax credit of company’s increased research and development expenses over a base period (prorated to not exceed $15 million annual cap for all businesses)
  • Up to 20 percent of total pool set aside for small businesses


Businesses qualifying for the federal Research and Development tax credit and making research and development investments in Pennsylvania


  • Applicable to CNI, CSFT and PIT tax liability
  • Unused credits may be carried over for up to 15 succeeding taxable years

How to Apply

Pennsylvania Department of Revenue

Purpose of Funding

  • Research & Development

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