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Delaware and the R&D Tax Credit
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.
Are you eligible?
Why choose us?
Pass an Audit?
Swanson Reed is one of the only companies in the United States to exclusively focus on R&D tax credit preparation. Swanson Reed’s office location at 3616 Kirkwood Hwy, Wilmington, Delaware provides R&D tax credit consulting and advisory services to Wilmington, Dover, Newark, Middletown and Smyrna.
If you have any questions or need further assistance, please call or email our local Delaware Partner on (302) 342-0410.
Feel free to book a quick teleconference with one of our Delaware R&D tax credit specialists at a time that is convenient for you. Click here for more information about R&D tax credit management and implementation.
Contact Us
Delaware Office
Swanson Reed | Specialist R&D Tax Advisors
3616 Kirkwood Hwy,
Wilmington, DE 19808
Wilmington, DE 19808
