SB2560 Summary

• Makes the research and development tax credit permanent on a continuous basis for all tax years ending on or after December 31, 2004 and ending prior to January 1, 2027.

• Extends the research and development credit carryforward period from 5 taxable years to 20 taxable years for credits earned on or after the effective date of this Act.

• Modifies the base period calculation for the credit by reducing the qualifying expenditure baseline to 50% of the average for tax years ending on or after December 31, 2021.

• Exempts the research and development credit from sunset provisions under Section 250 of the Act.

• Takes effect immediately upon becoming law.