Enhancements to Pennsylvania R&D Tax Credit
Recent legislation signed into Pennsylvania law provided for enhancements to the state’s research and development tax credit program. The amount available was increased from $40 million to $55 million. Of that amount, $11 million is set aside for small business use, an increase from $8 million in previous years. This tax credit is available to businesses and individuals performing qualified research in Pennsylvania to encourage businesses in the commonwealth to conduct research, especially research of a technological or scientific nature. Qualified businesses, including pass-through entities, and individuals may apply the credit against Capital Stock/Foreign Franchise Tax, Corporate Net income Tax and Personal Income Tax.