Around 38 states offer their own R&D credits, with their own rules, and they’re among the most commonly missed. Where your research happens in a state with a program, we claim it alongside your federal credit.
Request a Complimentary AssessmentMany states mirror the federal credit; some are more generous. For a company doing meaningful research in the right state, the state credit isn’t a rounding error, it can approach the size of the federal benefit. And because the state rules differ from the federal ones, it’s the piece a general return most often misses entirely.
Broadly, state programs fall into three groups, and the group changes how, and when, you get the benefit.
Some states pay out the credit as cash even without state tax liability, valuable for pre-profit companies.
A handful let you sell or transfer credits you can’t use, turning them into near-term cash.
Most offset state tax and carry forward, still substantial for profitable companies.
Programs and rates vary by state and change over time. We confirm current requirements for each applicable state as part of the engagement.
State eligibility generally tracks where your qualifying activity and your researchers are, not just where you’re headquartered. For companies with employees or R&D in more than one state, that can mean multiple credits, or apportioning expenses across states. We map it and keep every state consistent with the federal study.
It generally comes down to where your qualifying research and your researchers are located. We identify every state with a program that fits your footprint.
Often, yes, in the right state they can approach the federal benefit, and refundable or transferable credits can become near-term cash. We’ll tell you honestly when a state isn’t worth pursuing.
We prepare the state analysis and the supporting schedules alongside the federal study, coordinated so the numbers tie out, and hand your CPA a package for each applicable state.
Often, subject to each state’s own statute of limitations and amendment rules, which differ from the federal ones. We check this as part of any lookback.
This page is general information, not tax or legal advice. Eligibility and amounts depend on the taxpayer’s facts and applicable law, and are determined through the appropriate R&D study. Novaric does not guarantee eligibility, credit amounts, or any IRS outcome.