Research and Development Investment Tax Credit (RDITC)

The R&D investment Tax Credit is a non-refundable Ohio corporate franchise (income) tax credit for all investments in qualified research expenses incurred in Ohio by eligible “C” corporations. Qualified research expenses are based on Section 41 definitions in the U.S. Internal Revenue Code and include expenses for both in-house and contract research expenses. The amount of the credit is based on 7 percent of the amount of all qualified investment in a specific year. For companies with a presence in Ohio, the eligible investment in R&D expenses is based on all investment exceeding the company’s three-year annual average investment in the country. The credit can be carried forward for up to seven years.