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Vermont R&D Tax Credit Summary


The Vermont R&D Tax Credit provides a tax credit for increasing qualifying research activities that occurred in Vermont. The Applicable Vermont code section (32 V.S.A Section 5930ii) leverages off of the federal section 41 rules in determining qualified research expenditures and calculating the state credit.

VT R&D Credit Summary:

Effective on or after January 1, 2014, the Vermont credit equals:

  • 27% (formerly 30%) of the federal credit for Qualified R&D expenses in Vermont

Eligible Entities: C-Corporation, S-Corporations, LLCs, Partnerships

  • VT credit applies to personal income tax or business or corporate income tax.

Deadline for Tax Filing: Due with Vermont Tax Return

Data Required to Compute Credit:

  • Claim Period Federal Qualified R&D Expenses (QREs)

  • Claim Period Vermont QREs

Credit Carryforward: 10 Years

  • Any excess credit not used for the taxable year in which it is earned may be carried forward for up to 10 years.

Refundable/Transferable Tax Credit: No

Important Links and Forms:

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