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Utah
R&D Tax Credits

Connect with us to find out how R&D tax credits can boost your organization’s bottom line.

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This post was last updated on Aug 15, 2025.

Utah R&D Tax Credit

Discover the benefits of Utah state credits and see how your business could qualify.

Utah provides a Research and Development Credit which closely follows IRC § 41. The credit amount is a combination of the following calculations:

  1. 5% of your excess qualified research expenses (QREs) for research activities conducted in Utah over a comparative base amount;
  2. 5% of certain excess payments made to a qualified organization for basic research conducted in Utah over a comparative base amount; and
  3. 7.5% of your QREs in Utah for the current tax year.

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)

The Utah R&D tax credit equals the sum of the following:

  • 5% of your excess qualified research expenses (QREs) for research activities conducted in Utah over a comparative base amount;
  • 5% of certain excess payments made to a qualified organization for basic research conducted in Utah over a comparative base amount; and
  • 7.5% of your QREs in Utah for the current tax year.

Specific Items to Note:

  • Regarding utilization, credits calculated as 7.5% of a taxpayer's current-year QREs may not be carried forward.
  • For the state of Utah, this is a non-refundable credit.
  • Utah's R&D Tax Credit is a permanent state credit and will not expire.
  • There is no official Utah form for this credit. The final credit amount gets reported on Form TC-40A (Part 4 - using code 12). Keep all related documents with your records.
%
%
%
carry forward for credit usage

Utah R&D Tax Credit Eligibility Summary:

Is the R&D Tax Credit Available?:
Yes
No
Eligible Entities:
Deadline for Tax Filing:
Data Required to Compute Credit:
What Information is needed?:

Utah R&D Tax Credit Guidelines:

Utah R&D Tax Credit Case Study

A Utah-based company recovered thousands in R&D tax credits to refuel growth.

$

Total state R&D tax credits earned

%

Amount of wages qualified for tax credits

$

Total R&D tax credit earned

Key Utah R&D Tax Credits R&D Tax Rules Changes

2019' - 22
22' and after
2019' - 22
22' and after

Resources

There are many other considerations and exemptions, including what documentation the IRS requires for the R&D tax credits. Stay updated to navigate the new tax laws with confidence.

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Connect with us to find out how R&D Tax Credits can boost your organization’s performance.

Ready to Maximize Your State Credits?

With just a little info, our Strike Experts can help you start your R&D tax credit journey.

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Ready to calculate your R&D tax credits?

To get an estimate of the potential value of your unclaimed R&D Tax Credits, try out our credit calculator.

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Download the app.

Download our R&D Tax Credit Calculator for Android to see how much you can receive from your qualified R&D tax credit expenses.

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Frequent Asked Questions

What is the Utah R&D tax credit?

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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.

What activities qualify for Utah’s R&D tax credit?

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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.

How much can my business save with Utah’s R&D tax credit?

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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.

Are Utah R&D tax credits refundable or carryforward?

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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.

How do I apply for Utah’s R&D tax credit?

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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.

What are the 2025 changes to R&D tax credits in Utah?

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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.