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CA

California Research and Development (R&D) Tax Credit

California R&D Tax Credit allows tech companies to claim 15% of qualified research expenses exceeding a base amount, plus 24% of basic research payments, or use the new Alternative Simplified Credit (ASC) method effective 2025.

About this program

Visit the program website for full details.

Eligibility

California businesses incurring qualified research expenses within California. Effective 2025, taxpayers must elect either the regular credit or the new Alternative Simplified Credit method.

Requirements

  • Must have qualified research expenses in California
  • Must elect credit method (regular or ASC) on timely filed return starting tax year 2025
  • Research must meet IRS Section 41 qualified research definitions