Innovative Businesses in Arizona can Receive both State and Federal Tax Credits.
The physical environment of the Grand Canyon State demands resilience and the same can be said of its business sector. Thankfully, Arizona tax credits provide a much needed reprieve for enterprising individuals.
If you’re operating a business in Arizona, this article will highlight some resources you can use to reduce your tax burden. To discover more business tools, check out the free education podcast, Credits with Coffee.
Which Arizona Tax Credits are Available for Businesses?
The Arizona Department of Revenue provides information about many incentives for the business community. Below, you can see a few credits that businesses can take advantage of:
- Health Insurance Premium Tax Credit
- Healthy Forest Production Tax Credit
- Renewable Energy Production Tax Credit
- Renewable Energy for Self-Consumption
- Research & Development Tax Credit
Arizona companies investing in new product development, like those in the deftech or pharmaceutical industries, are particularly encouraged to take advantage of the Research & Development Tax Credit.
The Arizona Research & Development Tax Credit
The Arizona R&D tax credit provides a tax credit for increasing qualifying research activities in the state of Arizona. This state credit is unique as research funded by taxpayers at state universities can also be eligible.
It is also important to note that Arizona offers both a refundable and nonrefundable credit.
Business owners that qualify for an Arizona Research & Development Tax Credit could also take advantage of a Federal R&D Tax Credit.
What is the Federal R&D Tax Credit?
The Internal Revenue Code explains that the R&D tax credit rewards innovative US companies conducting research and development. Since 1981, the program has provided billions of dollars to businesses for developing new technologies, products, materials, and processes.
The Federal R&D program is open to businesses operating in all 50 states and allows these businesses to recoup 7-10% of R&D costs for qualifying research expenses (QRE).
Take the Bowers R&D Associates free online test to see if you qualify for an R&D tax credit.
What You Need to Know About Arizona R&D Tax Credits
Like many states, Arizona offers a variety of tax credits to business owners. Innovative companies can take advantage of the state’s R&D tax credit as well as Federal R&D tax credit program. Contact Bowers R&D today and discover how you can reduce your tax burden.