State R&D Tax Credits

Rhode Island

Credit Name: RI Title 44 §44-32-3 Credit for qualified research expenses

Expiration Date: Permanent

Does it apply to C corps and pass-through entities?: For tax years prior to 1/1/2011, no restrictions. For tax years beginning on or after 1/1/2011, C-corporation only

Credit Carry forward: Carry Forward 7 years

Description: One calculation method – QREs are defined the same as the IRC §41. The credit is equal to 22.5% for the first $111,111 of RI qualified research expenses that exceed the federal base amount ($25,000 credit) and 16.9% for all expenses above the $111,111.

Other Notes:

• Can only be applied against the tax imposed by RI tax code chapters 11, 17, or 30.
• The credit cannot offset more than 50% of taxpayer’s tax liability after all other credits have been applied
• Credit must be applied only to the entity generating the credit and my not be applied to other members of a control group.
• Carryforward credits also limited to 50% of remaining tax liability