REV-1826: Schedule C-15 - Adjustment for Research and Experimental Expenditures (REV-1826) (Revision)
Pennsylvania · Pennsylvania DOR · Used for tax years 2024, 2025, 2026
Pennsylvania Schedule C-15 (REV-1826) reports adjustments for research and experimental expenditures. It lists federal deductions, current-year Pennsylvania amounts, and unamortized balances, with totals carried to RCT-101.
Who files this form
Taxpayers must use REV-1826, Schedule C-15, to determine and report research and experimental (R&E) expenditure adjustments for Pennsylvania Corporate Net Income Tax.
The text requires this schedule for each tax year beginning after December 31, 2024. It must be completed annually and submitted with RCT-101. The adjustments cover federal R&E deductions and amortization claimed under Internal Revenue Code sections 59(e), 174, 174A, and 481.
What you'll need
Have these records and details available to complete the schedule:
- Corporation name, FEIN, and tax year beginning and ending dates.
- Federal return amounts for the R&E deductions and amortization listed in Section I.
- R&E expenditure records showing the original expenditures, applicable tax years, and remaining unamortized balances.
- The prior year's REV-1826 for balances carried forward, when applicable.
- Pennsylvania Corporate Net Income Tax filing history, because it can affect the amount available for recovery.
- The number of months used for federal amortization of domestic R&E expenditures under section 174A, when applicable.
If the corporation acquired unamortized R&E expenditures through a merger or liquidation, attach the other corporation's most recently filed REV-1826.
How to file
Submit the completed REV-1826 with RCT-101 each year.
- Add Section I lines 1A through 1F and carry the total to RCT-101, page 2, line 3D.
- Complete Section II to determine the Pennsylvania R&E recovery deduction. Add lines 10, 14, 18, 22, 28, 34, 40, and 46 on line 47 for columns E, F, and G.
- Carry line 47, column E, to RCT-101, page 2, line 2E.
- Attach the other corporation's most recently filed REV-1826 if you acquired unamortized R&E expenditures through a merger or liquidation.
The supplied text does not provide a mailing address or e-file directions.
Common mistakes
- Missing a required merger or liquidation attachment. Without the other corporation's most recently filed REV-1826, the department will not allow additional recovery of the acquired unamortized R&E expenditures.
- Recovering more than the allowed amount. R&E deductions cannot exceed amounts previously added back, or to be added back in future years, for Pennsylvania purposes.
- Using the full original expenditure when Pennsylvania filing history limits recovery. First-time Pennsylvania filers may not be able to recover the entire original federal expenditure. Follow the applicable Column D instructions.
- Overlooking fiscal-year rules. Fiscal-year filers should follow the special instructions for determining unamortized balances.
- Ignoring formatting requirements. Use all capital letters and whole dollars. Do not use dashes or slashes in any field.
Questions people ask
What does Section I do?
It adds federal deductions for foreign and domestic R&E back into Pennsylvania taxable income.
What does Section II do?
It calculates the available Pennsylvania deduction for recovering R&E expenditures.
What is the difference between Part 1 and Part 2?
Part 1 covers expenditures paid or incurred in tax years beginning before January 1, 2025. Part 2 covers expenditures paid or incurred in tax years beginning after December 31, 2024.
How are Part 2 expenditures generally deducted for Pennsylvania purposes?
They are generally deducted over five years, regardless of federal treatment. The instructions calculate current-year amortization in Column E by multiplying Column D by 20 percent.