Skip to main content
Base Amount Transition Example: Expense Year 2025, October to September Fiscal Year

Base Amount Transition Example: Expense Year 2025, October to September Fiscal Year

Expense Year 2025, October to September Fiscal Year

An eligible Corporate Income Tax (CIT) filer claiming the Research and Development (R&D) Tax Credit has a fiscal year of October 1–September 30. The base amount calculation for expense year 2025 includes:

  • 75% of MQREs from fiscal year ending 2022, applied to calendar year 2022 (as 9 months took place in calendar year 2022)
  • 25% of MQREs from fiscal year ending 2023, applied to calendar year 2022 (as 3 months took place in calendar year 2022)
  • 75% of MQREs from fiscal year ending 2023, applied to calendar year 2023 (as 9 months took place in calendar year 2023)
  • 25% of MQREs from fiscal year ending 2024, applied to calendar year 2023 (as 3 months took place in calendar year 2023)
  • 75% of MQREs from fiscal year ending 2024, applied to calendar year 2024 (as 9 months took place in calendar year 2024)
  • 25% of MQREs from fiscal year ending 2025, applied to calendar year 2024 (as 3 months took place in calendar year 2024)
Base Amount Transition Rule

Other Examples

Expense Year 2026, July to June Fiscal Year Example

Expense Year 2027, December to November Fiscal Year Example

Expense Year 2028 and Forward