Combine State and Federal Credits for Maximum Savings
Program Overview
Pennsylvania offers R&D tax credits that can be stacked with federal credits for the same eligible activities, letting you potentially double your tax savings on innovation investments.
Program
Credit Rate
10% of eligible expenses above the base amount (20% for small businesses)
Program Cap
$60 million per year
Carryforward
15 years
Transferable
Yes, credits can be sold with approval
Eligibility Requirements
Eligible Activities & Expenses
Activities:
Software development and improvement
Manufacturing process optimization
Product design and prototyping
Engineering solutions for technical challenges
Environmental and efficiency improvements
Eligible Expenses:
Wages
R&D staff and direct support personnel
Supplies
Materials used up in the research process
Contract Research
65% of payments to third-party researchers
Computer Costs
R&D-specific rental/lease costs, cloud hosting
Federal vs. Pennsylvania Credits
FEDERAL CREDIT
PENNSYLVANIA CREDIT
Rate
Rate
20% (simplified method)
10% (20% for small businesses)
Location
Location
U.S.-based research
Pennsylvania-based only
Carryforward
Carryforward
20 years
15 years
Transferable
Transferable
No
Yes (with approval)
REAL EXAMPLE
Company with $3.3M in eligible expenses earned
$359,917 federal + $148,750 Pennsylvania credits = $508,667 total savings
Application Process
KEY DATES
Application Opens
08-01
Deadline
12-01
Eligible Period
Expenses from the previous calendar year
Requirements:
Strategic Advantages
Double Your Savings
Claim both federal and state credits for the same activities
Credit Monetization
Sell unused credits for immediate cash flow
Incremental Benefits
The more you invest in R&D, the greater your credits
Pass-Through Flexibility
Transfer credits to owners/partners
No Sunset
Permanent program for long-term planning
Common Qualification Scenarios
Why Work with Boast?
Maximize Your Credits
Our platform identifies all eligible activities across federal and state programs
Streamlined Process
Automated documentation and application management
Expert Support
Ensure compliance with both federal and Pennsylvania requirements
Proven Results
We help clients claim every dollar they’re entitled to
Next Steps
- 1Assessment: Review your Pennsylvania-based R&D activities to see if you qualify
- 2Documentation: Set up proper tracking for eligible expenses and activities
- 3Application: Submit through myPATH by the December 1 deadline
- 4Optimization: Build a strategy to maximize both federal and state benefits
