Delaware
State Credit Name: Credit for Research and Development Expenses
Expiration Date: Indefinite.
Who Can Apply? Corporations and flow-through entities
Credit Carry Forward: Unused R&D credits can be carried forward for 15 years. No carry back.
About the Credit: The taxpayer may calculate the credit in one of two ways:
- 10% of the excess of the taxpayer’s total Delaware QRE’s for the taxable year over the taxpayer’s Delaware base amount; or
- 50% of Delaware’s appointed share of the taxpayer’s federal R&D tax credit, calculated using the alternative simplified credit method.
Small businesses and start-ups with revenue less than $20 million are eligible for a credit equal to:
- 20% of the excess of the taxpayer’s total Delaware QRE’s for the taxable year over the taxpayer’s Delaware base amount; or
- 100% of Delaware’s apportioned share of the taxpayer’s federal R&D tax credit, calculated using the alternative simplified credit method.
Notes: The total credit may not exceed 50% of the taxpayer’s tax due in any one taxable year. The credit is refundable.
Click here to find out if you qualify for the federal research tax credit.
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