California’s research and development tax credit is designed to encourage companies to increase basic research and development activities in the state.


The research and development tax credit allows companies to receive a 15% tax credit for qualified in-house research expenses and a 24% credit for basic research payments to outside organizations.


To qualify, a taxpayer’s research must be conducted within California and include basic or applied research of scientific inquiry, original investigation for the advancement of scientific or engineering knowledge or improved function of a business component.

For more information, go here.