- Illinois Income Tax Act (IITA)
- IITA Section $201(k)$ (Research and Development Credit)
- 35 ILCS $5/201(k)$
- Illinois Department of Revenue (IDOR)
- Schedule 1299-C (Income Tax Subtractions and Credits for Individuals)
- Schedule 1299-D (Income Tax Credits for Corporations and Fiduciaries)
- Schedule 1299-I (Income Tax Credits Information and Worksheets)
- Credit Code 5340 (R&D Credit)
- Qualifying Expenditures (for increasing research activities)
- Internal Revenue Code (IRC) Section 41
- Qualified Research Expenses (QREs)
- Research Conducted in this State (Illinois)
- Base Amount (for R&D calculation)
- Average Qualifying Expenditures (3 preceding tax years)
- Credit Percentage (6.5%)
- Nonrefundable Credit
- Carryforward Period (5 Years)
- Forfeited Credit
- In-House Research Expenses
- Contract Research Expenses
- Basic Research Payments (IRC $\S 41(e)$)
- Wages for Qualified Services
- Cost of Supplies
- Rental or Lease Costs of Computers
- Qualified Research (IRC $\S 41(d)$ Four-Part Test)
- Process of Experimentation
- Technological in Nature
- Elimination of Uncertainty
- Business Component
- New or Improved Function, Performance, Reliability, or Quality
- Exclusion: Research After Commercial Production
- Exclusion: Adaptation of Existing Component (Customer Need)
- Exclusion: Duplication of an Existing Product or Process
- Exclusion: Surveys or Studies
- Exclusion: Research on Internal-Use Computer Software
- Exclusion: Research Outside Illinois
- Exclusion: Research in Social Sciences, Arts, or Humanities
- Exclusion: Government-Funded Research
- Distributive Share of Credit
- Pass-Through Entities (Partnerships, S corporations, LLCs)
- Partnership’s or S corporation’s Schedule K-1-P
- IITA Section $201(a)$ and $(b)$ (Tax Imposed)
- IITA Section $201(c)$ and $(d)$ (Personal Property Tax Replacement Income Tax)
- Taxable Year
- Unused Credit
- Unitary Taxpayer/Group
- Written Agreement (for credit distribution by S Corps/Partnerships, post-2023)
- Public Act 103-0595 (R&D credit extension to 12/31/2031)
- Quantum Information Science Research and Development Tax Credit
- Qualifying Quantum Information Science Expenditures