Research & Development Tax Credit Program
Act 7 of 1997 created the Pennsylvania Research & Development (R&D) tax credit. The R&D tax credit provision became Article XVII-B of the Tax Reform Code of 1971 (TRC). The intent of the R&D tax credit is to encourage taxpayers to increase R&D expenditures within the Commonwealth in order to enhance economic growth.
This tax credit is available to businesses and individuals performing qualified research in Pennsylvania, to encourage businesses in the commonwealth to conduct research.
To qualify for the R&D tax credit, the entity must be:
Subject to Corporate Net Income Tax or Personal Income Tax;
Have research expenses incurred for qualified research and development conducted within Pennsylvania;
Have had at least two years for R&D expenditure;
In compliance with tax laws and regulations of the Commonwealth of Pennsylvania as determined by the department
To apply for the Research and Development Tax Credit visit myPATH, the Department of Revenue’s new online filing system. This is a logged in function so you will need to create a myPATH account.
The application period opens July 12, 2023. All applications must be submitted by December 1, 2023.
To watch a video tutorial on How to Submit a Research and Development Tax Credit or other myPATH features go to myPATH Video Tutorials.