Defined term
R&D tax credit
Also: research tax credit · innovation tax credit
A government incentive that reduces tax owed based on qualifying research and development spending.
An R&D tax credit is a statutory incentive that offsets tax liability (or, in refundable regimes, pays cash) in proportion to eligible research and development expenditure. Programs vary by jurisdiction in rate, refundability, base calculation, and the definition of qualifying activity. Related forms include investment tax credits, expenditure credits, payroll offsets, and volume-based or incremental designs. Always confirm current program parameters with official guidance.
Related on the Index
Related terms
Common questions
- Is an R&D tax credit the same in every country?
- No. Eligibility tests, eligible cost categories, rates, refundability, and filing mechanics differ by jurisdiction. Compare program hubs and confirm current rules with a qualified advisor.
More glossary terms
Educational definition only. Not tax or legal advice. Confirm current program rules with official guidance and a qualified adviser.