Infographic: Everything You Need To Know About Arizona’s Refundable Research and Development (R&D) Tax Credit

Arizona offers both refundable and non-refundable credits in addition to the Federal R&D tax program:

  •  The 2011 through 2022 R&D tax credit is equal to 24% of the first $2.5 million in qualifying expenses plus 15% of the qualifying expenses in excess of $2.5 million.
  • For 2023 and thereafter, the tax credit rates will be 20% of the first $2.5 million in qualifying expenses plus 11% of the qualifying expenses in excess of $2.5 million.
  • Unused credits can be carried forward up to 15 years.
  • In order to qualify for the refundable portion of the tax credit, a Company must qualify for the regular tax credit and employ less than 150 full-time employees.
  • The refundable amount is 75% of the excess of the allowable credit that exceeds the taxpayer’s tax liability. Any excess amounts of credits are waived.
  • Arizona has capped the refundable amounts to $5 million in any calendar year.

We know that this program can seem complicated for first-time claimers so we attempted to simplify it into an easy-to-read infographic.

(Click infographic to open in a new tab)

Arizona R&D Tax Credit Infographic

Want to share this image on your site? Please include attribution to https://boastcapital.com. Thank you!

Keep reading

SR&ED

SR&ED Financing Tips To Get Your Refund Before Your Claim Is Filed

How to Access $26 Billion in Canadian Grant Funding

SR&ED Documentation Best Practices

US R&D Credits

R&D tax faq

15-Point R&D Tax Credit FAQ

How Startups Can Get $250,000 From The IRS This Tax Season

5 Point R&D Tax Claim Checklist For Guaranteed Returns

Business Growth

Bev Attfield Jostle

How to Build Connection In Your Business

Reinventing Startup Marketing with AngelList’s Head of Marketing

Timeless, Tested Growth Tactics That Will Give You An Unfair Advantage