R&D Investments Drive California Innovation
25 Feb 2022
News, Tax Credit
This legislative package, developed in partnership with the Legislature amid the Omicron surge, underscores the important steps California has taken to protect workers and businesses over the last two years since COVID-19 wreaked havoc on our economy. In particular, it restores the tax credit for investments in research and development, including basic research, that are the foundation of California’s unmatched innovation economy.
California outpaces all other states in research and development spending, accounting for more than one-fifth of the total U.S. R&D investments and nearly 30% of U.S. patents.
California isn’t alone in recognizing the benefits of R&D; 35 other states currently offer their own state-level tax credits. To stay competitive, and ensure the ongoing success of our innovation-fueled economy, California needs to help companies commit the resources, time and risk that new ideas and products require. The R&D tax credit does just that.