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Base Amount Transition Example: Expense Year 2027, December to November Fiscal Year

Base Amount Transition Example: Expense Year 2027, December to November Fiscal Year

Expense Year 2027, December to November Fiscal Year

An eligible Corporate Income Tax (CIT) filer claiming the Research and Development (R&D) Tax Credit has a fiscal year of December 1–November 30. The base amount calculation for expense year 2027 includes:

  • 92% of MQREs from fiscal year ending 2024, applied to calendar year 2024 (as 11 months took place in calendar year 2024)
  • 8% of MQREs from fiscal year ending 2025, applied to calendar year 2024 (as 1 month took place in calendar year 2024)
  • 100% of MQREs from calendar year 2025, applied to calendar year 2025
  • 100% of MQREs from calendar year 2026, applied to calendar year 2026

Converted fiscal year MQREs may only be used for calendar year 2024. MQREs for base amount years 2025 and 2026 must reflect the calendar year in which they were incurred.

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