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Navigating the 2023 R&D Energy Research Credit Landscape


The Research and Experimentation Tax Credit, popularly known as the R&D Energy Research Credit, has been a pivotal incentive for businesses focused on energy research and development. As we step into 2023, understanding the nuances of this credit becomes crucial for corporations, including C Corporations, S Corporations, Partnerships, and those filing under Schedule C, to maximize their benefits.

Overview of the 2023 R&D Energy Research Credit

For 2023, the R&D Energy Research Credit continues to support businesses that contribute to energy research advancements. The credit remains an essential tool for companies investing in energy research through qualified institutions, particularly energy research consortiums.

Eligibility Criteria

  • Qualified Recipients: The credit is applicable for payments made to energy research consortiums, which are tax-exempt organizations primarily conducting energy research for public interest.

  • Exclusions: Research conducted outside of the United States, including Puerto Rico and other U.S. possessions, does not qualify for the credit.

Credit Details for 2023

  • Credit Percentage: Companies can claim a 20% credit on amounts paid to qualified energy research consortiums.

  • Research Focus: The research must qualify as energy research under the R&D tax credit guidelines.

Benefits of the Credit

  1. Simplified Tax Process: The credit offers a straightforward method for claiming R&D expenses.

  2. Ease of Tracking: Companies can easily track and qualify expenses based on accounting records and qualifications of third-party organizations.

Considerations for 2023

  • Payments to an energy consortium for the R&D tax credit cannot be claimed under any other category.

Claiming the Credit

  1. Documentation: Ensure that all payments to qualified third-party providers are well-documented.

  2. Compliance: Adhere to the latest guidelines to avoid disqualification.

Who Can Claim?

  • Eligible Business Entities: C Corporations, S Corporations, businesses filing under Schedule C, and Partnerships.


The 2023 R&D Energy Research Credit continues to be a valuable asset for businesses engaged in energy research. By aligning their R&D strategies with the credit's requirements, companies can significantly benefit from this financial incentive. It not only encourages innovation in the energy sector but also provides a tangible financial return for those investing in a sustainable future. As we move forward, staying updated and compliant with the evolving tax laws will be key to maximizing the benefits of the R&D Energy Research Credit.

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