SB3723 Summary

• Modifies the research and development tax credit by changing the baseline calculation from 100% of average qualifying expenditures in the base period to 50% for tax years ending on or after December 31, 2020, making the credit more generous.

• Makes the research and development credit permanent on an ongoing basis rather than subject to expiration dates, applying continuously for all tax years ending on or after December 31, 2004.

• Adds Section 250 exemption language to the research and development credit subsection, exempting it from certain statutory provisions governing tax credits.

• Takes effect immediately upon becoming law.