When most people hear “research and development,” they picture big tech companies or scientists in white coats. But in California, many small businesses can qualify for the Research & Development (R&D) Tax Credit, and it can save you thousands of dollars on state taxes. If you’ve ever tested a new idea, improved a process, or tried out a new tool or material in your business, you might be doing “R&D” without realizing it.
If you’ve just started a business in California, you’ve probably already heard about the famous, or rather infamous $800 minimum franchise tax. For many small business owners, it feels like an unavoidable cost of doing business here. But fortunately new corporations don’t have to pay this fee in their very first year. That exemption can mean a lot in savings at a time when every dollar counts. Unfortunately, many entrepreneurs don’t know about it, and some end up overpaying simply because they weren’t aware of the rule.
Big changes are coming to the way charitable donations are deducted on your taxes, starting in 2026. If you give to charity, you’ll want to know how these new rules work so you can plan ahead and maximize your tax savings.