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Utah provides a Research and Development Credit which closely follows IRC § 41. The credit amount is a combination of the following calculations:
Note: You may carry forward any credit for #1 or #2 (above) that exceeds your tax liability for 14 years. You may not carry forward any credit as calculated for #3.
Learn more about Utah's R&D Tax Credit law from the state tax code here and Utah Income Taxes.
R&D Tax Credit Available:
Yes
Eligible Entities:
C-Corporation, S-Corporations, LLCs, Partnerships
Deadline for Tax Filing:
Due with Utah Tax Return
Data Required to Compute Credit:
Claim Period Utah Qualified R&D Expenses (QREs)
Utah Gross Receipts for Prior 4 Years
What Information is needed?
Utah QREs for Prior 3 Years
Utah Gross Receipts for Prior 4 Years
Credit Carryforward?
14 Years for comparative credit amounts (No carryback)
To get an estimate of the potential value of your unclaimed R&D Tax Credits, try out our credit calculator.
Download our R&D Tax Credit Calculator for Android to see how much you can receive from your qualified R&D tax credit expenses.
Utah offers a state R&D tax credit of 5% on qualified research expenses exceeding a base amount (the greater of 50% of current QREs or average of prior three years), plus 5% on basic research payments, designed to encourage innovation in industries like tech, manufacturing, and life sciences. Contact Strike Tax to maximize your savings.
Eligible activities include developing or improving products, processes, or software involving technical uncertainty, such as tech innovations or manufacturing efficiencies, meeting federal IRC § 41 criteria and conducted in Utah; excludes market research or routine testing. Strike Tax can identify qualifying projects.
For $1 million in incremental QREs, you could save $50,000, stackable with federal credits for additional benefits; also, basic research payments qualify for another 5%. Use Strike Tax’s R&D Credit Calculator for a personalized estimate.
Credits are non-refundable but can be carried forward for up to 14 years to offset future tax liability. Strike Tax can help maximize carryforward benefits.
File Schedule TC-40R with your Utah tax return, ensuring QREs align with federal standards; no prior approval needed, but detailed records are essential. Strike Tax simplifies the filing process.
No major state changes to the R&D credit, but comprehensive tax reform under HB 264 repeals other credits like the renewable energy credit effective 2025; federally, immediate Section 174 expensing is restored, and Form 6765 requires enhanced reporting, benefiting Utah claims aligned with federal rules. Strike Tax can help navigate these updates.