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Arizona Research & Development Tax Credit

Arizona Department of Revenue (ADOR)AZ-RD-CREDIT
Max per Applicant

Varies

Maximum a single org can receive

Deadline

Rolling / No deadline

Jurisdiction

Arizona

About This Program

State income tax credit for businesses conducting qualifying R&D activities in Arizona. Credit equals 24% of the first $2.5 million in qualifying expenses and 15% above that threshold, mirroring the federal R&D credit structure.

Key Requirements & Eligibility

  • 1R&D activities must be conducted within Arizona
  • 2Qualifying expenses must meet IRS Section 41 definitions
  • 3Small businesses with under $1M in AZ gross receipts may qualify for accelerated credit
  • 4Credit is nonrefundable but may be carried forward 15 years
  • 5Claim on AZ Form 308

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Arizona Research & Development Tax Credit

ADOR ยท Arizona

Income tax credit for Arizona businesses conducting qualified research and development, with a base credit of 24% on R&D expenses up to $2.5M and 15% above that threshold.

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Apply or Learn More

Visit the official page to review full eligibility requirements and apply.

Official Source
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Applicable Industries

Research & DevelopmentTechnologyManufacturingClean Technology
Official Source