Downloadable guides, interactive tools, and reference content for business owners, CPAs, and design professionals evaluating federal tax incentives.
Calculators build a full report for your company that you can save and share. Quick estimators give a fast range right on each service page.
Estimate your federal R&D credit for each open tax year, from a 2-minute quick estimate to a full analysis by role. Your report shows each year, what counts toward the credit, and the findings that apply to your company.
A full 179D report for building owners and for the architects and engineers who design their projects, valued by placed-in-service year. Until it launches, the 179D Estimator gives a fast range.
Sector-specific guides covering qualifying activities, the four-part test, and what documentation is required to support a credit claim.
Introduction to IRC Section 41: who qualifies, how the credit is calculated, and what the look-back study process involves. The starting point for any business evaluating R&D credits.
Qualifying activities for MEP firms, technical uncertainty in building system design, and typical QRE composition.
Coming SoonQualifying activities for dental practices with advanced clinical and laboratory operations, including the four-part test applied to dental R&D.
Coming SoonA complete reference for the IRC Section 179D energy deduction, including 2026 rates, the designer allocation pathway, and how 179D stacks with cost segregation.
Covers the 2026 deduction rates, prevailing wage and apprenticeship requirements, the designer allocation pathway for architects and MEP engineers, and how 179D stacks with cost segregation.
Nearly 40 states offer R&D tax credits that stack with the federal Section 41 credit. Rates, refunds, and approval rules differ widely, and they change often. Here is how the programs we have profiled in depth compare.
12 states profiled. Most recent update August 11, 2026.
Select up to 5 states to compare side by side. Select a state for its full profile.
| Compare | |||||||
|---|---|---|---|---|---|---|---|
| Alaska | 18% of federal credit | No | 20 yearsPlus a 1-year carryback | Not required | NoneCorporations only | June 24, 2026 | |
| Arkansas | Up to 20%, or 33% | No | 9 years | RequiredAgreement with the Arkansas Economic Development Commission | SaleTargeted Business credits only, once, with approval | August 11, 2026 | |
| California | 15% or 3% above base | LimitedRefund election for credit held back by the cap, through tax year 2029 | Indefinite | Not required | Assign within groupAffiliated corporations in the same combined report | August 3, 2026 | |
| Georgia | 10% above base | No | 5 years10 for credits earned before 2025 | Not required | Payroll offsetBy election, against Georgia withholding | June 24, 2026 | |
| Illinois | 6.5% above 3-year average | No | 5 years | Not required | NonePass-through owners receive their share | June 24, 2026 | |
| Massachusetts | 10% above base | Certified companies90% refund for certified life sciences or climatetech | 15 yearsSome disallowed credit carries forward indefinitely | Not requiredCertification required for refunds | Share within groupCombined group members | July 28, 2026 | |
| Nebraska | 15% or 35% of federal credit | Sales tax refundCash refund option ended for claims filed on or after July 1, 2026 | 20 years4 years for the on-campus credit | Not required | Sales and use tax refundUp to Nebraska sales and use tax paid | June 24, 2026 | |
| New Hampshire | 10% of research wages | No | 5 years | RequiredAnnual application to the state | NoneStays with the business entity | July 28, 2026 | |
| New Jersey | 10% above base | No | 7 years15 in specified technology fields | Not requiredState approval needed to sell credits | SaleThrough the state NOL program, at 80% of value or more | June 15, 2026 | |
| New York | Targeted programs | Several programsExcelsior, Life Sciences, and Semiconductor credits | 15 yearsInvestment credit; refundable programs pay out | Most programsState certification for Excelsior, Life Sciences, and Semiconductor | Refunds for new businessesInvestment credit carryover, by election | June 15, 2026 | |
| South Carolina | 5% of all research spending | No | 10 yearsCounted from the year expenses were incurred | Not required | License fee offsetCorporate license fee as well as income tax | June 15, 2026 | |
| Texas | 8.722% above base | Small businessesRevenue at or below $2,650,000, or tax under $1,000 | 20 years | Not required | NoneSales tax exemption option ended January 1, 2026 | June 15, 2026 |
We're verifying the remaining state programs. Ask us about yours.
Updated as of June 24, 2026
Alaska has no stand-alone R&D credit. Corporations instead take 18% of the federal research credit attributable to Alaska, applied against Alaska corporate income tax.
Example value
$22,680
A C corporation doing all of its research in Alaska, with a $126,000 federal research credit, earns about $22,680 in Alaska credit.
Statute: Alaska Stat. § 43.20.021(d)
Official source: Alaska Department of Revenue, Tax DivisionUpdated as of August 11, 2026
Arkansas offers four R&D credit programs: up to 20% of growth in in-house research spending, and 33% for university research, targeted businesses, and strategic research areas. Every program requires state approval before the credit is earned.
Example value
$50,000
An Arkansas manufacturer approved at the full 20% in-house rate, growing in-state research spending from $500,000 to $750,000, earns about $50,000 in Arkansas credit for the year.
Statute: Ark. Code Ann. § 15-4-2708 and § 26-51-1102
Official source: Arkansas Department of Finance and AdministrationUpdated as of August 3, 2026
California offers 15% of California research expenses above a base amount under the regular method, or 3% under the alternative simplified method for tax years 2025 and later. Corporations can add 24% of qualifying basic research payments. Only research performed in California counts.
Example value
$31,500
A California C corporation whose in-state research spending grew to $1,500,000 earns about $31,500 under the alternative simplified method. In the same example, the regular method produces no credit at all.
Statute: Cal. Rev. & Tax. Code § 23609 and § 17052.12
Official source: California Franchise Tax BoardUpdated as of June 24, 2026
Georgia offers 10% of Georgia research expenses above a base amount set by your own three-year Georgia history. Credit beyond the yearly limit can offset Georgia payroll withholding by election.
Example value
$8,500
A Georgia manufacturer with $325,000 of Georgia research spending and $800,000 of Georgia receipts earns about $8,500 in Georgia credit for the year.
Statute: O.C.G.A. § 48-7-40.12
Official source: Georgia Department of RevenueUpdated as of June 24, 2026
Illinois offers 6.5% of Illinois research expenses above the average of the three prior years. Only research performed in Illinois counts.
Example value
$30,323
A company that grew Illinois research spending to $1,719,000 from a three-year average of $1,252,500 earns about $30,323 in Illinois credit.
Statute: 35 ILCS 5/201(k)
Official source: Illinois Compiled Statutes, 35 ILCS 5/201Updated as of July 28, 2026
Massachusetts offers corporations 10% of Massachusetts research expenses above a base amount, using either of two methods, plus 15% of qualifying basic research payments under the traditional method. Certified life sciences and climatetech companies can receive 90% of unused credit as a refund.
Example value
$30,260
A profitable Massachusetts manufacturer with $1,200,000 of in-state research spending earns about $30,260 in Massachusetts credit.
Statute: M.G.L. c. 63, § 38M
Official source: Massachusetts Department of Revenue, 830 CMR 63.38M.1Updated as of June 24, 2026
Nebraska offers 15% of the federal research credit attributable to Nebraska research, or 35% for research on a Nebraska college or university campus. For claims filed on or after July 1, 2026, the credit offsets income tax or refunds Nebraska sales and use tax paid, but is no longer paid as a direct cash refund.
Example value
$30,965
A corporation with a $250,000 federal credit, most of it from Nebraska research including a university lab, earns about $30,965 in Nebraska credit.
Statute: Neb. Rev. Stat. §§ 77-5801 to 77-5808
Official source: Nebraska Legislature, § 77-5804Updated as of July 28, 2026
New Hampshire offers 10% of qualifying New Hampshire research wages for new or improved manufacturing processes or products, up to $50,000 per business a year. A $7,000,000 statewide annual cap means awards are often reduced pro rata.
Example value
$50,000
A manufacturer with $900,000 of New Hampshire research wages qualifies for the $50,000 maximum before any statewide proration.
Statute: RSA 77-A:5, XIII
Official source: New Hampshire Department of Revenue AdministrationUpdated as of June 15, 2026
New Jersey offers corporations 10% of New Jersey research expenses above a base amount, plus 10% of qualifying basic research payments. Unprofitable technology and biotechnology companies may be able to sell unused credits.
Example value
$65,000
A New Jersey corporation with $1,200,000 of in-state research spending and $50,000 of university basic research payments earns about $65,000 in New Jersey credit for the year.
Statute: N.J.S.A. 54:10A-5.24
Official source: New Jersey Division of TaxationUpdated as of June 15, 2026
New York has no general credit based on growth in research spending. It offers targeted programs instead, including a 9% investment credit on research property, a refundable Excelsior R&D credit for approved projects, and a refundable Life Sciences credit of 15% or 20% of New York research spending for new life sciences companies.
Example value
$500,000
A new biotech with 8 New York employees and $3,000,000 of New York research spending can receive the $500,000 annual maximum Life Sciences credit as a refund.
Statute: N.Y. Tax Law §§ 31, 43, and 210-B
Official source: New York State Department of Taxation and FinanceUpdated as of June 15, 2026
South Carolina offers 5% of all South Carolina research expenses, with no base amount to exceed. You must also claim the federal research credit for the same year.
Example value
$50,000
A company with $1,000,000 of South Carolina research spending earns about $50,000 in South Carolina credit every year it spends at that level.
Statute: S.C. Code Ann. § 12-6-3415
Official source: South Carolina Code of Laws, Title 12, Chapter 6Updated as of June 15, 2026
Texas offers a franchise tax credit of 8.722% of Texas research expenses above half of the prior three-year average, or 10.903% when the company has a research contract with a Texas college or university. This structure applies to report years 2026 and later.
Example value
$91,581
A Texas manufacturer that grew Texas research spending to $1,500,000 from a three-year average of $900,000 earns about $91,581 in Texas credit.
Statute: Tex. Tax Code ch. 171, subch. T
Official source: Texas Comptroller of Public AccountsKey legislative and regulatory developments affecting federal tax incentives for R&D and energy efficiency.
A running record of federal and state changes that affect R&D credits and 179D deductions, each with the date we confirmed it.
Plain-English definitions for terms that appear in R&D credit studies, 179D energy deductions, and cost segregation analyses.
No terms match. Ask us about it.
One of two ways to calculate the federal R&D credit. It equals 14% of qualified research expenses above half of the average for the three prior years, or 6% of current-year expenses when the company had none in any one of those years. Many companies use it because it does not depend on records from the 1980s.
R&D tax creditThe commercial building energy standard that Section 179D uses as its baseline. A building's energy savings are measured against a reference building designed to the edition of 90.1 that applies to the project.
179D energy deductionUnder the regular research credit, the threshold that qualified research expenses must exceed before the credit applies. It is the company's fixed-base percentage multiplied by its average gross receipts for the four prior years, and it can never be less than half of current-year research expenses.
R&D tax creditAmounts paid to outside firms or individuals to perform qualified research on your behalf. Generally 65% of these payments count as qualified research expenses, or 75% for qualified research consortia, and the research must be performed in the United States.
R&D tax creditAn engineering-based study that identifies building components that can be depreciated over 5, 7, or 15 years instead of 27.5 or 39 years. Faster depreciation moves deductions into earlier years.
Cost segregationFor buildings owned by government entities, tax-exempt organizations, and certain other owners, the owner can allocate its 179D deduction to the architect, engineer, or contractor who designed the qualifying systems. The allocation is limited by the cost of the energy-efficient property and its installation.
R&D and 179D for architecture and MEP firmsUnder the regular research credit, the ratio of a company's research expenses to its gross receipts during a base period, usually 1984 through 1988, capped at 16%. Companies without that history use start-up rules that begin at 3%.
R&D tax creditThe IRS test every research activity must pass to qualify for the R&D credit: a permitted purpose, such as a new or improved product or process; reliance on the principles of science or engineering; an effort to eliminate technical uncertainty; and a process of experimentation.
The four-part testAn election that lets a qualified small business apply up to $500,000 of R&D credit each year against payroll taxes instead of income tax. It is available to companies with gross receipts under $5,000,000 for the year and no gross receipts before the most recent five years.
R&D tax creditThe tax year a building or system is ready and available for its intended use. For Section 179D, it determines which deduction rates apply and the year the deduction is taken.
179D energy deductionLabor requirements added by the Inflation Reduction Act. Projects that meet them, or that are exempt, can claim Section 179D at up to five times the base rate.
179D energy deductionThe costs that count toward the R&D credit: wages for employees who perform, directly supervise, or directly support qualified research; supplies used in that research; amounts paid to use computers, including cloud computing, in that research; and a share of contract research payments.
R&D tax creditThe original method of calculating the federal R&D credit: 20% of qualified research expenses above a base amount set by the company's fixed-base percentage. It can produce a larger credit for some companies but depends on historical records.
R&D tax creditThe section of the Internal Revenue Code that creates the federal credit for increasing research activities, commonly called the R&D tax credit. The credit is permanent, and credits that were never claimed can often be claimed for open prior tax years.
R&D tax creditSection 174 governs how research and experimental costs are deducted. From 2022 through 2024, domestic costs had to be amortized over five years. Section 174A, enacted in July 2025, restores the immediate deduction of domestic research costs for tax years beginning after December 31, 2024. Foreign research costs are still amortized over 15 years.
R&D tax creditThe federal tax deduction for energy-efficient commercial buildings, covering interior lighting, HVAC and hot water, and the building envelope. Under the One Big Beautiful Bill Act, property qualifies only if construction began by June 30, 2026.
179D energy deductionThe 6% rate under the alternative simplified credit that applies when a company had no qualified research expenses in any one of the three prior years.
R&D Tax Credit CalculatorUncertainty, at the start of a project, about whether something can be done, how to do it, or what the right design is. Working to eliminate it is one part of the four-part test.
The four-part testMost of our engagements involve coordination with an existing CPA relationship. We handle the technical study work and deliver documentation your CPA can rely on for filing and audit defense.
Completed IRS Form 6765, business component documentation per current Form 6765 disclosure requirements, technical uncertainty narratives for qualifying activities, wage allocation methodology, and a study report your CPA can reference if the credit is ever questioned.
aecre studies are built to the evidentiary standard, not just to the credit maximum. If the IRS questions a credit we prepared, we support your CPA through the examination. Our engineers are available for technical questions. We do not walk away after filing.
Prior year tax returns to establish base periods and identify open look-back years, current year financial data when available, and confirmation of entity structure and state filing requirements. We work around your timeline.
Thirty minutes with us is usually enough to identify which incentives apply and whether a study makes sense. No commitment.
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