Rhode Island Research & Development Expense Tax Credit

RI R&D Expense Tax Credit

Supports Rhode Island companies with tax credit access for eligible innovation spending through state filing mechanisms.

The Rhode Island R&D Expense Tax Credit, authorized under R.I. Gen. Laws § 44-32-3 and administered by the Rhode Island Division of Taxation, allows qualifying corporations to claim a non-refundable state tax credit against Rhode Island corporate income tax for qualified research expenses incurred within the state. For Tax Year 2026 (January 1 through December 31, 2026), the credit is calculated at 22.5 percent on the first $111,111 of Rhode Island-attributed federal excess R&D expenses, and 16.9 percent on any amount above $111,111. The credit may not reduce the taxpayer's liability below the statutory minimum established by § 44-11-2(e), and may not exceed 50 percent of the filer's total RI corporate tax. The credit cannot exceed 50 percent of tax as shown on Form RI-1120C line 11 or T-71 line 7.

As of Tax Year 2026, per Rhode Island Division of Taxation Advisory ADV 2026-02 issued January 14, 2026, unused credit may be carried forward for 15 years — extended from the prior seven-year window. Existing carryforward balances from prior tax years retain their original seven-year carryforward period. The credit is claimed on Form RI-7695E, which is attached to Schedule B-CR and filed with the annual corporate return. No pre-approval or competitive application is required; it is a by-right filing for any qualifying RI corporation. Pass-through entities and individuals cannot claim the credit directly.

To determine the qualifying credit amount, filers must first complete federal Form 6765 to establish federal qualified research expenses and the base period amount; only the portion of federal excess expenses attributable to Rhode Island activity qualifies. If any prior-year R&D Property Tax Credit carryforward remains under § 44-32-2, that credit must be applied before claiming the R&D Expense Credit. Forms are available at tax.ri.gov. No competitive deadline exists — the credit is claimed with the annual corporate return for the applicable tax year.