Utah State R&D Tax Credit
Utah offers a tax credit for research activities conducted in Utah, detailed within Utah Code Section 59-10-1012.
The credit amount equals the sum of the following three expenses:
- a research tax credit of 5% of the taxpayer’s qualified research expenditures for the current taxable year exceeding a base amount
- a 5% credit for payments to qualified organizations for basic research as provided in IRC §41(c) for the current taxable year that exceed a base amount; and
- a tax credit of 7.5% of qualified research expenses in Utah for the current taxable year
The base amount is calculated as provided in IRC §41(c) and IRC §41(h), except that:
- it does not include the alternative incremental credit provided for in IRC §41(c)(4)
- the taxpayer’s gross receipts include only those amounts attributable to Utah sources under the allocation and apportionment provisions; and
- for purpose of calculating the base amount, a taxpayer may make an irrevocable election to be treated as a start-up company regardless of whether the taxpayer meets the requirements of IRC §41(c)(3)(B)(i)(I) or IRC §41(c)(3)(B)(i)(II)
How to obtain the credit?
The credit amount should be entered on Utah Form TC-40A, Income Tax Supplemental Schedule, Part 4, using code 12.
Refundable/Transferable Tax Credit – No
For the first two amounts above, any excess credit not used for the taxable year in which it is earned may
be carried forward as a credit for the next 14 taxable years. Any unused credit under the third amount above
may not be carried forward.
Find out if you qualify for the R&D tax credit
States and the R&D Credit: