- Available to taxpayers engaged in qualified research activities in California.
- There are several differences between federal and California law. Therefore, you should be familiar with the California provisions for the year you are claiming the Research Credit.
- Complete the form FTB 3523 to claim the Research Credit.
This table shows the changes in research credit rates since 1987:
| TAX YEARS BEGINNING |
QUALIFIED RESEARCH |
BASIC
RESEARCH |
ALTERNATIVE INCREMENTAL |
| 1987-1996 |
8% |
12% |
N/A |
| 1997 |
11% |
24% |
1.65%, 2.20%, 2.75% |
| 1998 |
11% |
24% |
1.32%, 1.76%, 2.20% |
| 1999 |
12% |
24% |
1.32%, 1.76%, 2.20% |
| 2000 and later |
15% |
24% |
1.49%, 1.98%, 2.48% |
FTB Manuals and Publications
MATM, section 9140 - Research Expenses Credit(Once within the manual use the "find" feature to go to section 9140.)
Form FTB 3523 [1995]
Form FTB 3523 [1996]
Form FTB 3523 [1997]
Form FTB 3523 [1998]
Form FTB 3523 [1999]
Form FTB 3523 [2000]
Form FTB 3523 [2001]
Form FTB 3523 [2002]
Form FTB 3523 [2003]
Form FTB 3523 [2004]
Form FTB 3523 [2005]
Research & Development Credit FAQ
- Publication FTB 1082
Tax News Article
Other FTB References
Research Credit - Overview
Research
Credit - Four Tests for Qualified Research
Research Credit - Seven Tests for Internal Use
Software
Non-FTB References
Spidell's California
Taxletter
Employment Development
Department - Market Wage Information
IRS Information
IRS Website
Home Page
MSSP for
Computers, Electronics & High Tech Industry
Chapter 2 of this MSSP Audit Technique Guide covers the R&D credit.
IRS
Website - Research Credit Guidelines and Audit Technique Guide
The Research Credit Audit Technique Guide provides general guidance on
the planning and conduct of an examination of a Research Credit case.
IRS
Website - Research Credit for Qualified Research
This is an overview of the credit and how to calculate it. It does
not include aggregation.
Codes, Regulations, Notices and Rulings
Revenue & Taxation Code §17052.12
Revenue & Taxation Code §23609
Revenue & Taxation Code §23649
Revenue & Taxation Code §24365
Revenue & Taxation Code §24440
FTB Notice 92-6
Internal Revenue Code (IRC) Section 41
Internal Revenue Code (IRC) Section 174
Internal Revenue Code (IRC) Section 280C
Treasury Regulations 1.41-1 through 1.41-8
Treasury Regulations 1.174-1 through 1.174-4
Treasury Regulations 1.280C-4
Federal Court Cases & Private Letter
Rulings
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