California research credit

Tax credit

Official program guidance

Agency: California Franchise Tax Board. Agency source

This directory is not tax advice. Confirm eligibility, tax-year rules, deadlines and filing requirements with a tax professional.

Check program requirements [California Franchise Tax Board research credit]

Who qualifies
Taxpayers conducting qualified research in California, subject to California modifications of federal rules. [California Franchise Tax Board research credit]
What it’s worth
Regular calculation: 15% of qualified expenses over a base plus 24% of basic research payments. Alternative simplified calculation: 3% above half the preceding three-year average, or 1.3% of current expenses when a preceding year has none. [California Franchise Tax Board research credit]
How to claim
Attach Form FTB 3523 to the income tax return. [California Franchise Tax Board research credit]
Deadlines and application windows
Alternative simplified credit available from January 1, 2025; elect on a timely original return. Unused credits carry forward until exhausted. [California Franchise Tax Board research credit]

Amounts are subject to the conditions in each listing. A source review does not mean applications are open or that a business qualifies.

Official sources

Listing reviewed