- Need Professional CPA?
Tag: Form 3523
Payroll R&D Credit: Why the CA Program Is Capped
Introduction Startups across the U.S. leverage the federal payroll R&D credit to offset up to $500,000 in employer-side payroll taxes. But what about California? In 2025, California still does not allow R&D credits to offset payroll tax, and its overall research credit program is non-refundable and capped for corporations. This guide explains why CA R&D […]
California R&D Credit vs. Federal: Can Founders Double-Dip?
Introduction Founders often ask: “Can I claim the R&D credit at both federal and California levels?” In 2025, the answer is yes but with key differences in calculation, rules, and refundability. In this blog, we compare the California Research Credit with the Federal R&D Credit under IRC §41 and guide founders on how to maximize […]
How to Claim California’s R&D Tax Credit for Businesses (2025 Edition)
Introduction California rewards businesses that invest in research and development with one of the most lucrative state tax credits available. If your company develops software, processes, or products, you may be eligible to reduce or eliminate your state tax liability using the R&D tax credit in 2025. What Is the California R&D Credit? Applicable Code: […]
California’s Tax Incentives for Small Businesses & Startups (2025 Edition)
Introduction California might have high taxes, but it also offers generous incentives to small businesses and startups that invest, hire, and innovate. In 2025, qualifying businesses can significantly reduce their tax burden by claiming state and federal credits—if they know where to look. Overview of Tax Incentives Available in 2025 Applicable Code: California Revenue & […]