State R&D Tax Credit Rates for 2026: A 23-State Comparison Table
State R&D tax credit rates for 2026 in one comparison table: rate, structure, carryforward and refundability for 23 states, from Ricerca's rules registry.
The short answer: Of the 23 states in the registry, 18 carry a current research credit, 1 is a certificate program only and 4 are recorded as expired for tax year 2026. The table below shows each state’s rate, structure, carryforward and refundability, rendered directly from the rules registry Ricerca’s platform computes from (exported September 10, 2026). When the registry changes, this page changes with it.
Two cautions before the numbers. Headline rates are not comparable across states: a 10% credit on a small increment can be worth less than a 5% credit on every dollar. And several programs are capped or application-gated, so the computed credit is a ceiling, not an entitlement.
The 2026 state R&D tax credit table
State R&D tax credits for tax year 2026, from Ricerca's rules registry (exported September 10, 2026)
- Arizona Current credit
- Rate
- 24% on the first $2,500,000 of the credit base, then 15% above it
- Structure and base
- Incremental Base: Federal §41(c) base, Arizona expenses and receipts substituted
- Carryforward
- 10 years
- Refundable?
- Not refundable
- State form
- Form 308 (Form 308-I for individuals)
- California Current credit
- Rate
- 15%; plus 24% of basic research payments
- Structure and base
- Incremental Base: Federal §41(c) base, California expenses and receipts substituted
- Carryforward
- Indefinite
- Refundable?
- Not determined in our registry
- State form
- FTB 3523
- Colorado Current credit
- Rate
- 3%
- Structure and base
- Incremental Base: The average of the 2 preceding years
- Carryforward
- Indefinite
- Refundable?
- Not determined in our registry
- State form
- DR 1366
- Connecticut Current credit
- Rate
- 20%
- Structure and base
- Incremental Base: The average of the 1 preceding year
- Carryforward
- 15 years
- Refundable?
- Not determined in our registry
- State form
- CT-1120 RDC / CT-1120 RC
- Florida Current credit
- Rate
- 10%
- Structure and base
- Incremental Base: Defined by Florida statute, not the federal §41(c) formula
- Carryforward
- 5 years
- Refundable?
- Not determined in our registry
- State form
- F-1196
- Georgia Current credit
- Rate
- 10%
- Structure and base
- Incremental Base: Defined by Georgia statute, not the federal §41(c) formula
- Carryforward
- 5 years
- Refundable?
- Not determined in our registry
- State form
- IT-RD (filed with the Georgia return; a copy of federal Form 6765 must be attached)
- Illinois Current credit
- Rate
- 6.5%
- Structure and base
- Incremental Base: The average of the 3 preceding years
- Carryforward
- 5 years
- Refundable?
- Not determined in our registry
- State form
- Schedule 1299-D (corporations and fiduciaries), Schedule 1299-A (partnerships and S corporations) or Schedule 1299-C (individuals) Registry update pending: verified against the official source
- Indiana Current credit
- Rate
- 15% on the first $1,000,000 of the credit base, then 10% above it
- Structure and base
- Incremental Base: The federal §41 base, applied to state expenses
- Carryforward
- 10 years
- Refundable?
- Not determined in our registry
- State form
- Schedule IN-RDC
- Maryland Current credit
- Rate
- 10%
- Structure and base
- Incremental Base: Federal §41(c) base, Maryland expenses and receipts substituted
- Carryforward
- 7 years
- Refundable?
- Refundable for a small business The registry records a small-business test of $5,000,000 net book value of assets.
- State form
- Form 500CR
- Massachusetts Current credit
- Rate
- 10%
- Structure and base
- Incremental Base: The federal §41 base, applied to state expenses
- Carryforward
- 15 years
- Refundable?
- Not determined in our registry
- State form
- Schedule RC
- Minnesota Current credit
- Rate
- 10% on the first $2,000,000 of the credit base, then 4% above it
- Structure and base
- Incremental Base: The federal §41 base, applied to state expenses
- Carryforward
- 15 years
- Refundable?
- Refundable, subject to limits the registry does not record The registry records the credit as refundable without recording the statutory limits on the refund, so the study establishes them rather than the page assuming there are none.
- State form
- Schedule RD
- New Jersey Current credit
- Rate
- 10%
- Structure and base
- Incremental Base: The federal §41 base, applied to state expenses
- Carryforward
- 7 years
- Refundable?
- Not determined in our registry
- State form
- Form 306
- New York Certificate program only
- Rate
- No current credit rate
- Structure and base
- Not applicable
- Carryforward
- Not applicable
- Refundable?
- Not applicable
- State form
- None recorded in the registry
- North Carolina Expired
- Rate
- No current credit rate
- Structure and base
- Not applicable
- Carryforward
- Not applicable
- Refundable?
- Not applicable
- State form
- None recorded in the registry
- Ohio Current credit
- Rate
- 7%
- Structure and base
- Incremental Base: Defined by Ohio statute, not the federal §41(c) formula
- Carryforward
- 7 years
- Refundable?
- Not determined in our registry
- State form
- None recorded in the registry
- Oregon Expired
- Rate
- No current credit rate
- Structure and base
- Not applicable
- Carryforward
- Not applicable
- Refundable?
- Not applicable
- State form
- None recorded in the registry
- Pennsylvania Current credit
- Rate
- 10%; 20% small-business rate
- Structure and base
- Incremental Base: Defined by Pennsylvania statute, not the federal §41(c) formula
- Carryforward
- 15 years
- Refundable?
- Not determined in our registry
- State form
- Online application in myPATH (REV-545 series); the awarded credit is used against Corporate Net Income Tax or Personal Income Tax Registry update pending: verified against the official source
- South Carolina Current credit
- Rate
- 5%
- Structure and base
- Non-incremental Base: No base amount: the rate applies to expenses directly
- Carryforward
- 10 years
- Refundable?
- Not refundable
- State form
- SC Sch. TC-18 (credit code 018)
- Texas Current credit
- Rate
- 8.722%; higher rate 10.903%; 4.361% fallback with no prior-period spend
- Structure and base
- Incremental Base: Defined by Texas statute, not the federal §41(c) formula
- Carryforward
- 20 years
- Refundable?
- Partially refundable The registry records refundability only for an entity with no tax due.
- State form
- Form 05-182 with Form 05-181 (refundable credit: Form 05-183, plus Form 05-184 for a combined group, due November 15) Registry update pending: verified against the official source
- Utah Current credit
- Rate
- 7.5%; plus 5% each, cumulative
- Structure and base
- Non-incremental for the component computed at 7.5%; the registry carries a separate incremental component at 5% Base: Federal §41(c) base, Utah expenses and receipts substituted, for the 5% components
- Carryforward
- Split: no carryforward for the component computed at 7.5%, 14 years for the component computed at 5%.
- Refundable?
- Not refundable
- State form
- Credit code 12 (TC-40A Part 4 / TC-20 Sch. A - no separate form)
- Virginia Expired
- Rate
- No current credit rate
- Structure and base
- Not applicable
- Carryforward
- Not applicable
- Refundable?
- Not applicable
- State form
- None recorded in the registry
- Washington Expired
- Rate
- No current credit rate
- Structure and base
- Not applicable
- Carryforward
- Not applicable
- Refundable?
- Not applicable
- State form
- None recorded in the registry
- Wisconsin Current credit
- Rate
- 5.75%
- Structure and base
- Incremental Base: 50% of the average of the 3 preceding years
- Carryforward
- 15 years
- Refundable?
- Not determined in our registry
- State form
- Schedule R
Source: Ricerca rules registry (23 states, exported September 10, 2026); each state page carries the regime version and statute. "Not determined" is an honest unknown, not a "no": the registry treats an unverified nonrefundable as undetermined, and the study confirms the position against the statute. Rates are not comparable across states without the base, limits and gating that sit behind them. General information, not tax advice.
State R&D tax credits for tax year 2026, from Ricerca's rules registry (exported September 10, 2026)
| State (TY2026 status) | Rate summary | Structure and base | Carryforward | Refundable? | State form |
|---|---|---|---|---|---|
| ArizonaCurrent credit | 24% on the first $2,500,000 of the credit base, then 15% above it | IncrementalBase: Federal §41(c) base, Arizona expenses and receipts substituted | 10 years | Not refundable | Form 308 (Form 308-I for individuals) |
| CaliforniaCurrent credit | 15%; plus 24% of basic research payments | IncrementalBase: Federal §41(c) base, California expenses and receipts substituted | Indefinite | Not determined in our registry | FTB 3523 |
| ColoradoCurrent credit | 3% | IncrementalBase: The average of the 2 preceding years | Indefinite | Not determined in our registry | DR 1366 |
| ConnecticutCurrent credit | 20% | IncrementalBase: The average of the 1 preceding year | 15 years | Not determined in our registry | CT-1120 RDC / CT-1120 RC |
| FloridaCurrent credit | 10% | IncrementalBase: Defined by Florida statute, not the federal §41(c) formula | 5 years | Not determined in our registry | F-1196 |
| GeorgiaCurrent credit | 10% | IncrementalBase: Defined by Georgia statute, not the federal §41(c) formula | 5 years | Not determined in our registry | IT-RD (filed with the Georgia return; a copy of federal Form 6765 must be attached) |
| IllinoisCurrent credit | 6.5% | IncrementalBase: The average of the 3 preceding years | 5 years | Not determined in our registry | Schedule 1299-D (corporations and fiduciaries), Schedule 1299-A (partnerships and S corporations) or Schedule 1299-C (individuals)Registry update pending: verified against the official source |
| IndianaCurrent credit | 15% on the first $1,000,000 of the credit base, then 10% above it | IncrementalBase: The federal §41 base, applied to state expenses | 10 years | Not determined in our registry | Schedule IN-RDC |
| MarylandCurrent credit | 10% | IncrementalBase: Federal §41(c) base, Maryland expenses and receipts substituted | 7 years | Refundable for a small businessThe registry records a small-business test of $5,000,000 net book value of assets. | Form 500CR |
| MassachusettsCurrent credit | 10% | IncrementalBase: The federal §41 base, applied to state expenses | 15 years | Not determined in our registry | Schedule RC |
| MinnesotaCurrent credit | 10% on the first $2,000,000 of the credit base, then 4% above it | IncrementalBase: The federal §41 base, applied to state expenses | 15 years | Refundable, subject to limits the registry does not recordThe registry records the credit as refundable without recording the statutory limits on the refund, so the study establishes them rather than the page assuming there are none. | Schedule RD |
| New JerseyCurrent credit | 10% | IncrementalBase: The federal §41 base, applied to state expenses | 7 years | Not determined in our registry | Form 306 |
| New YorkCertificate program only | No current credit rate | Not applicable | Not applicable | Not applicable | None recorded in the registry |
| North CarolinaExpired | No current credit rate | Not applicable | Not applicable | Not applicable | None recorded in the registry |
| OhioCurrent credit | 7% | IncrementalBase: Defined by Ohio statute, not the federal §41(c) formula | 7 years | Not determined in our registry | None recorded in the registry |
| OregonExpired | No current credit rate | Not applicable | Not applicable | Not applicable | None recorded in the registry |
| PennsylvaniaCurrent credit | 10%; 20% small-business rate | IncrementalBase: Defined by Pennsylvania statute, not the federal §41(c) formula | 15 years | Not determined in our registry | Online application in myPATH (REV-545 series); the awarded credit is used against Corporate Net Income Tax or Personal Income TaxRegistry update pending: verified against the official source |
| South CarolinaCurrent credit | 5% | Non-incrementalBase: No base amount: the rate applies to expenses directly | 10 years | Not refundable | SC Sch. TC-18 (credit code 018) |
| TexasCurrent credit | 8.722%; higher rate 10.903%; 4.361% fallback with no prior-period spend | IncrementalBase: Defined by Texas statute, not the federal §41(c) formula | 20 years | Partially refundableThe registry records refundability only for an entity with no tax due. | Form 05-182 with Form 05-181 (refundable credit: Form 05-183, plus Form 05-184 for a combined group, due November 15)Registry update pending: verified against the official source |
| UtahCurrent credit | 7.5%; plus 5% each, cumulative | Non-incremental for the component computed at 7.5%; the registry carries a separate incremental component at 5%Base: Federal §41(c) base, Utah expenses and receipts substituted, for the 5% components | Split: no carryforward for the component computed at 7.5%, 14 years for the component computed at 5%. | Not refundable | Credit code 12 (TC-40A Part 4 / TC-20 Sch. A - no separate form) |
| VirginiaExpired | No current credit rate | Not applicable | Not applicable | Not applicable | None recorded in the registry |
| WashingtonExpired | No current credit rate | Not applicable | Not applicable | Not applicable | None recorded in the registry |
| WisconsinCurrent credit | 5.75% | IncrementalBase: 50% of the average of the 3 preceding years | 15 years | Not determined in our registry | Schedule R |
Each state name links to its full page, which carries the registry version, the statute, the form and the preparer notes the registry records. The state R&D credits hub has the same states on a map.
How to read the table
- Status comes from the tax year 2026 entry only. “Current credit” means the registry carries a credit with a rate our engine can apply. “Certificate program only” means the state’s incentives turn on a certificate the state issues, so the amount does not follow from expenses. “Expired” means the registry’s statute citation records that the credit expired or sunset.
- Rate summary is the headline rate, plus any second tier, additional statutory component, small-business rate or fallback rate the registry records.
- Structure and base says whether the credit applies to all qualified research expenses or only to the increment above a base, and how that base is built.
- Carryforward is the number of years unused credit survives. “Indefinite” means no limit is recorded; a split entry means different components carry forward differently.
- Refundable? follows one rule: the table never prints an unqualified “Refundable.” Every refund answer carries its condition. “Not refundable” appears only where the registry holds an affirmative determination. Everything else reads “Not determined in our registry,” which is an honest unknown, not a “no.”
Incremental vs flat credits
16 of the 18 current credits are incremental. They apply only to qualified research expenses above a base, so they reward growth in research spending rather than its level. A company whose spending is flat year over year can have large qualified expenses and a small state credit.
The registry records non-incremental credits for South Carolina and Utah, where the rate applies to expenses directly. Where the registry records more than one cumulative component (Utah), the headline rate is a floor rather than the whole entitlement.
Tiered rates add another wrinkle. Arizona, Indiana and Minnesota apply a higher rate to the first slice of the credit base and a lower rate above it, so the effective rate falls as the credit grows.
How states couple to the federal §41 credit
States attach to §41 at different points, and the base is where they differ most. Among the current credits in the registry:
- Adopt the federal §41 base, applied to state expenses: Indiana, Massachusetts, Minnesota and New Jersey.
- Use the federal §41(c) formula with state expenses and state gross receipts substituted: Arizona, California, Maryland and Utah.
- Use a formula the state’s own statute prescribes: Florida, Georgia, Ohio, Pennsylvania and Texas.
- Measure against an average of prior-year state spending: Colorado, Connecticut, Illinois and Wisconsin.
- No base at all: South Carolina.
Definitions usually borrow from federal law too. Maryland’s statute, for example, defines Maryland qualified research by reference to §41(d) and Maryland qualified expenses by reference to §41(b), limited to research conducted in Maryland. The registry also flags explicit in-state requirements for wages or contract research for California, South Carolina and Utah.
The practical result is one expense base and several computations. A state figure starts from the same substantiated qualified research expenses as the federal credit, filtered to research performed in the state, and then runs through that state’s own base, rate and limits. Weak federal substantiation weakens every state claim built on it.
Which state R&D credits are refundable?
Few, and none without conditions. The registry records some form of refund for 3 current credits:
- Maryland: Refundable for a small business.
- Minnesota: Refundable, subject to limits the registry does not record.
- Texas: Partially refundable.
It records an affirmative “not refundable” for Arizona, South Carolina and Utah. For the other 12 current credits it holds no verified answer, so the table says “not determined” rather than guessing in either direction.
A refund is not the only way to turn a state credit into cash. Pennsylvania’s Department of Revenue states that its R&D credit may be sold, with the department’s approval before the sale. And Maryland’s refund is limited to small businesses with net book value assets under $5 million, as our Maryland deadline guide explains.
Application-gated and capped programs
Some credits are not simply claimed on a return. You apply, the state certifies or awards an amount, and a statewide cap can shrink every award. The registry flags these programs:
- Florida
- Program cap
- $9,000,000
- Award proration (historical)
- Approved applicants received about 5.5% of their computed credit in a recent award cycle; the registry entry does not date the ratio.
- Application window
- March 20-26 (for prior calendar-year expenses)
- Certification required
- Florida Dept. of Commerce target-industry certification + federal §41 credit allowed; the credit is NOT claimable without it.
- Pennsylvania
- Program cap
- $60,000,000
- Award proration (historical)
- Approved applicants received about 44.3% of their computed credit in the 2024 award cycle.
- Application deadline
- December 1
- Application opens
- August 1
Maryland belongs in this group too, even though its registry entry carries no program flags. The Maryland Department of Commerce certifies credits out of a $12 million annual pool, with $3.5 million reserved for small businesses and a $250,000 ceiling per applicant, and applications for 2025 expenses are due November 15, 2026.
Two more entries work differently again. Colorado’s registry entry is the credit under C.R.S. §39-30-105.5 (Enterprise Zone R&D credit), and New York’s is a certificate program only. For every program in this section, the computed credit is a ceiling, not an entitlement, and a missed application window forfeits the year.
Limits on using the credit
Several states limit how much credit can be used against tax in a year. These limits turn on tax liability, which lives on the return rather than in the study, so the preparer applies them at filing:
- California
$5,000,000 of credit may be used against tax in the year (a usage limit; the excess carries forward)
- Connecticut
70% of the applicable tax liability
- Georgia
50% of the applicable tax liability
- Massachusetts
M.G.L. c. 63 §38M: the credit may offset 100% of the first $25,000 of excise due plus 75% of the excise above $25,000. The limitation depends on Massachusetts excise liability, which is outside this study's data - the return preparer must apply it.
- South Carolina
§12-6-3415(B): the credit taken in any one taxable year may not exceed 50% of the taxpayer's REMAINING tax liability after all other credits have been applied - this credit is ordered last and the cap is computed on the post-other-credits residual (TC-18 lines 5-9). Tax liability is outside the study's data; the preparer applies the cap on the return.
- Texas
50% of the applicable tax liability
Carryforwards decide what happens to the rest. In the registry they run from 5 years (Florida, Georgia and Illinois) to 20 years (Texas). California and Colorado carry credits forward indefinitely, and Utah splits the carryforward by component.
What changed for 2025 and 2026
The registry keeps a tax year 2025 entry and a tax year 2026 entry for every state. Where they differ, it records the change field by field:
Arizona: what the registry changed between TY2025 and TY2026
| Registry field | TY2025 | TY2026 |
|---|---|---|
| Refundable | Yes, with conditions | No |
| Refund employee-count condition | 150 | Not recorded |
| Refund pre-approval citation | A.R.S. §41-1507 (Arizona Commerce Authority pre-approval; fewer than 150 full-time employees; 75% of the excess credit, in lieu of carryforward) | Not recorded |
| Verified nonrefundable | No | Yes |
Texas: what the registry changed between TY2025 and TY2026
| Registry field | TY2025 | TY2026 |
|---|---|---|
| Second statutory rate | 6.25% | 10.903% |
| Credit rate | 5% | 8.722% |
| Refundable | No | Yes, with conditions |
| Fallback rate (alternative) | 3.125% | 5.451% |
| Fallback rate | 2.5% | 4.361% |
| Registry flags | Tax base; Wages in state | Partially refundable no tax due; Tax base |
The registry’s editorial caveat for Arizona is worth repeating for anyone still filing a 2025 return:
Filing a 2025-year return now? The 75% partial-refund election is still available for that year - but only on an originally filed return, and carrying forward forfeits it.
Other recent changes sit in the registry’s citations rather than its change log. California’s entry reads: Cal. Rev. & Tax Code §23609 (post-SB 711: IRC conformity 1/1/2025; AIRC repealed; CA ASC added; SB 167 $5M credit cap TY2024-26). Virginia’s reads: Va. Code Ann. §58.1-439.12:08 / :11 (expired for TY beginning on/after 1/1/2025; HB 1969 (2025) extension failed). The full list of states with no current general credit:
- New York Certificate program only
NY Tax Law §210-B (Excelsior R&D / Life Sciences - ESD certificate required)
- North Carolina Expired
Former N.C. Gen. Stat. §105-129.50 et seq. (Article 3F - sunset for TY beginning on/after 1/1/2016)
- Oregon Expired
ORS 317.152 (expired for TY beginning on/after 1/1/2018)
- Virginia Expired
Va. Code Ann. §58.1-439.12:08 / :11 (expired for TY beginning on/after 1/1/2025; HB 1969 (2025) extension failed)
- Washington Expired
RCW 82.04.4452 (expired 1/1/2015 - no current credit)
Cite this table
This table is free to cite and link. Suggested citation:
Ricerca, “State R&D Tax Credit Rates for 2026: A 23-State Comparison Table,” ricercacredit.com/blog/state-rd-tax-credits-2026-rates-refundability. Data: Ricerca state rules registry, 23 states, exported September 10, 2026.
Because the table renders from the registry, the page updates when the registry is re-exported, and the export date tells readers which version they are looking at. If you see a state rule that has changed, let us know. For the federal side of the same claim, start with the R&D tax credit guide, and for the fourth-quarter deadlines, see the year-end R&D credit checklist.
FAQ
Which state has the highest R&D tax credit rate?
It depends on what you compare. Tiered states apply their top rate only to the first slice of the credit base, incremental states apply the rate only above a base, and some flat credits carry liability limits. Compare the credit your own expenses would produce in each state, not the headline rate.
Are state R&D tax credits refundable?
Rarely without conditions. Of the 18 current credits in the registry, it records a conditional refund for Maryland, Minnesota and Texas, and an affirmative “not refundable” for Arizona, South Carolina and Utah.
Why doesn’t the table cover every state?
It covers every state in the rules registry our platform computes from. A state outside the registry is not assumed to have, or to lack, a credit.
How often is this table updated?
Whenever the registry is re-exported. The current export is dated September 10, 2026, and each state page shows the regime version it renders.
Can I rely on this table to file?
No. It is general information to help you ask the right questions. State rules change, and the study applies the law for the tax year claimed. Your CPA or tax preparer signs and files the return.
Sources
- Ricerca - State R&D tax credits and the 23 state pages linked in the table, each rendering one registry entry with its statute and form citations
- Maryland Department of Commerce - Research and Development Tax Credit
- Md. Code, Tax-General §10-721 (Maryland General Assembly)
- Pennsylvania Department of Revenue - R&D Tax Credit Program
- IRC §41 - Credit for increasing research activities (U.S. House, Office of the Law Revision Counsel)
