The ACA has been given the authority to approve refunds under this program up to $5 million in any calendar year. Therefore, refunds are approved by the ACA on a first-come, first-served basis, according to the date and time an application is filed with the ACA. Beginning in calendar year 2019, the maximum refund amount per taxpayer is $100,000 in a single tax year. Download the R & D Tax Credit Allocation Table to view the remaining amount of tax credits available.
The calendar year 2024 cap of $5 million has been fully allocated.
Calendar Year 2024 Allocation Table
Calendar Year 2025 Applications may be filed on or after the first business day of 2025 (Thursday, January 2, 2025 8:00 A.M. Arizona Time) via the ACA's Electronic Application System.
Applications must be based on actual numbers, not estimates. A calendar year taxpayer may file an Application on or after the first business day following the close of the previous calendar year. A fiscal year taxpayer may file an Application on or after the first business day after the end of the fiscal year. For example, a taxpayer with a June 30, 2021 fiscal year end could apply for a partial refund of R&D credits as early as July 2, 2021, if cap is still available. If, however, the 2021 cap has been exhausted, the fiscal year end taxpayer may submit an Application on or after the first business day of 2022, provided said taxpayer has NOT filed its tax return with Revenue for the tax year in which the R&D credit was generated.
BASIC ELIGIBILITY REQUIREMENTS
A company may be eligible for a partial refund of its R&D tax credit, if it:
- Meets the eligibility requirements of A.R.S. §§ 41-1507 and 43-1074.01 or 43-1168 and the company’s current year’s Arizona R&D tax credit exceeds its current year’s tax liability.
- Submits an application to the ACA and receives a Certification of Qualification prior to filing a tax return with Revenue.
- Employs less than 150 full-time employees world-wide as of the last day of the taxpayer's taxable year.
- Remits a non-refundable processing fee equal to 1% of the company’s tax credit being refunded.
- Does not exceed the tax year refund limitations under A.R.S. § 41-1507 (E)
- Complies with employer and business sanctions set forth in A.R.S. § 23-214 (B) and A.R.S. § 35-393.
GENERAL INFORMATION
- The refundable R&D program is established under A.R.S. §41-1507
- Guidelines
- Summary
- To apply electronically for program incentives, click here.
Questions regarding the refundable tax credit, can be directed to the ACA Program Manager.