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Tag: R&D Credit
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 […]
C-Corp Flat 8.84 % Tax: Still Worth It for Venture-Backed AI Start-Ups in 2025?
Statutory Authority & Basics Law. California taxes C-corporations at a flat 8.84 percent on net income (10.84 percent for banks/financials) under R&TC § 23151, applied on Form 100. Minimum Franchise Tax. Every C-corp also owes $800 each year, due with the first quarter estimate—even if inactive or loss-making. Federal Overlay. C-corps pay IRC § 11 […]