SB3388 Summary

• Makes the research and development tax credit permanent, removing the previous expiration date of January 1, 2016.

• Extends the carryforward period for unused research and development credits from 5 years to 20 years.

• Increases the research and development credit by lowering the base period threshold from 100% to 50% of average qualifying expenditures, allowing more taxpayers to qualify for larger credits.

• Exempts the research and development credit provisions from Section 250 limitations.