- 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.
Research Credit Rates
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
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
Assistance
Telephone assistance is available from 8 a.m. until 5 p.m. Monday through Friday, except state holidays. We may modify these hours without notice to meet operational needs.
- 800.852.5711 from within the United States
- 916.845.6500 from outside the United States (not toll-free)
Assistance for persons with disabilities: We comply with the Americans with Disabilities Act. Persons with hearing or speech impairments please call TTY/TDD (800) 822-6268.