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California R&D Tax Credit

California R&D Tax Credit

Funds California innovators with tax credits for qualifying innovation expense and business development activity.

Between cyclesCalifornia Franchise Tax BoardUnited StatesEligible in California

The California Research Credit (Form FTB 3523) is a state income tax credit available to California taxpayers — corporations and pass-through entities — that incur qualified research expenses (QREs) from research activities conducted within California. The credit is structured in close parallel to the federal research credit under IRC §41, with California-specific modifications. The standard rate …

California state income tax credit at 15% of incremental qualified research expenses, or 3% under the Alternative Simplified Credit method, for taxpayers conducting qualified research in California.

CycleiHow often this grant runs — e.g. annually, on a rolling basis, or a one-off call.Annual
Next deadlineiThe next date applications are due. Rolling means you can apply any time.—
Decision timeiTypical time from the deadline to the funder's decision.—
Project durationiHow long the funded work is expected to run.—
Award typeiThe form of funding — grant, equity, loan, tax credit, etc.Tax credit
Match fundingiThe share of project costs you must cover yourself. 0% = fully funded.0%
Funding pooliThe total budget available across all awards in this round.—

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Last verified: 24 Jul 2026Source: www.ftb.ca.gov