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Base Amount Transition Example: Expense Year 2026, July to June Fiscal Year

Base Amount Transition Example: Expense Year 2026, July to June Fiscal Year

Expense Year 2026, July to June Fiscal Year

An eligible Corporate Income Tax (CIT) filer claiming the Research and Development (R&D) Tax Credit has a fiscal year of July 1–June 30. The base amount calculation for expense year 2026 includes:

  • 50% of MQREs from fiscal year ending 2023, applied to calendar year 2023 (as 6 months took place in calendar year 2023)
  • 50% of MQREs from fiscal year ending 2024, applied to calendar year 2023 (as 6 months took place in calendar year 2023)
  • 50% of MQREs from fiscal year ending 2024, applied to calendar year 2024 (as 6 months took place in calendar year 2024)
  • 50% of MQREs from fiscal year ending 2025, applied to calendar year 2024 (as 6 months took place in calendar year 2024)
  • 100% of MQREs from calendar year 2025, applied to calendar year 2025
Base Amount Transition Rule

Other Examples

Expense Year 2025, October to September Fiscal Year Example

Expense Year 2027, December to November Fiscal Year Example

Expense Year 2028 and Forward