| State: |
RI |
| Incentive Type: |
Income/Franchise Tax Incentives and Credits |
| Incentive Title: |
R&D Credits |
| Description: |
RESEARCH & DEVELOPMENT TAX CREDIT: The state of Rhode Island offers two tax credits for R&D. The first tax credit is on property acquired, constructed, reconstructed or erected. It is a 10% tax credit. The second tax credit is for qualified research expenses as defined by the Internal Revenue Code. The tax credit is 22.5% for the first $25,000 in tax credit and 16.9% for the rest of the credit. |
| Eligibility Requirements: |
1. Taxable property must be depreciable, have a useful life of three or more years, was acquired by purchase, is located in Rhode Island and is used for research and development activities. Leased property is not eligible.
2. Expenses must meet qualifications of IRC 41. The tax credit may not reduce the liability to less than 50% of the tax due. |
| Geographic Restrictions: |
Statewide |
| Granting Authority: |
Rhode Island Division of Taxation |
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