California research


This credit is based on the federal research credit, with modifications. You may qualify for this credit if you engaged in qualified research activities in California.


The credit is equal to the sum of the following:

  • 15% of qualified expenses that exceed a base amount
  • 24% of basic research payments

Alternative incremental credit

You may elect this alternative method on a timely filed original return. If you want to revoke this method in a later year, you must receive our approval before filing an original return. You cannot change your method on an amended return.


The carryover must be applied to the earliest tax year possible and the unused credit may be carried over until it is exhausted.

How to claim