Arizona R&D Refundable Tax Credit

The Arizona R&D Refundable Tax Credit is Arizona's research incentive for companies with qualified research expenses in the state, with the refundable piece administered through the Arizona Commerce Authority. The underlying credit follows the state's R&D rules, while the refund route is reserved for smaller companies. The credit is 24% of the first $2.5 million of qualifying expenses and 15% above that level. Companies with fewer than 150 full-time employees can seek a refund of up to 75% of the excess credit, capped at $100,000 a year, and the statewide pool is capped at $10 million. The best fit is a business with Arizona research activity that can document expenses cleanly and keep the refundable claim separate from the ordinary credit. The structure rewards companies that have meaningful but not massive research spend, because the refund rule and annual cap make the smaller-company route the most distinctive part of the program.

Each grant below is a distinct funding opportunity with its own eligibility, scope, and deliverables.