California tax credits and incentives
Review the program rules and claim timing below, then confirm the requirements with the administering agency.
This directory is not tax advice. Confirm eligibility, tax-year rules, deadlines and filing requirements with a tax professional.
Amounts are subject to the conditions in each listing. A source review does not mean applications are open or that a business qualifies.
1 program
-
California research credit
Tax credit
Regular calculation: 15% of qualified expenses over a base plus 24% of basic research payments. Alternative simplified calculation: 3% above half the preceding three-year average, or 1.3% of current expenses when a preceding year has none. [California Franchise Tax Board research credit]
Check program requirements [California Franchise Tax Board research credit]
Eligibility, claim steps and deadlines for California research credit
- Who qualifies
- Taxpayers conducting qualified research in California, subject to California modifications of federal rules. [California Franchise Tax Board research credit]
- What it’s worth
- Regular calculation: 15% of qualified expenses over a base plus 24% of basic research payments. Alternative simplified calculation: 3% above half the preceding three-year average, or 1.3% of current expenses when a preceding year has none. [California Franchise Tax Board research credit]
- How to claim
- Attach Form FTB 3523 to the income tax return. [California Franchise Tax Board research credit]
- Deadlines and application windows
- Alternative simplified credit available from January 1, 2025; elect on a timely original return. Unused credits carry forward until exhausted. [California Franchise Tax Board research credit]
Sources reviewed