R & D Tax Credits

The Research & Development (R&D) Tax Credit Program provides an Arizona income tax credit for increased research and development activities conducted in this state, including research conducted at a state university and funded by the taxpayer. The goal of the program is to encourage Arizona businesses to continue investing in research and development activities.  The R&D program has non-refundable components and a refundable component. The non-refundable components are administered by the Arizona Department of Revenue (Revenue). The refundable component is administered by the Arizona Commerce Authority (ACA).  

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