Vermont Research and Development Tax Credit Summary
The Vermont R&D Tax Credit provides a tax credit for increasing qualifying research activities. Vermont leverages off of the federal section 41 rules in determining qualified research expenditures and calculating the state credit.
- Applicable Vermont code section is 32 V.S.A Section 5930ii
- The credit applies to qualified expenditures that occurred in Vermont
- The credit is equal to 27% of the federal credit for expenditures made in Vermont
- Vermont allows a 10 year carry forward period for any unused R&D tax credits
Vermont R&D Tax Credit Case Study
A manufacturing company in Vermont conducted a look back study for the prior two years for the R&D Tax Credit. This project involved a multi-year study covering the tax years 2012 through 2014.
The Company qualified for the federal R&D Tax Credits of $278,930 and an additional $75,311 in Vermont state R&D Tax Credits.