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.
Swanson Reed in Delaware provides R&D tax credit consulting and advisory services to Wilmington, Dover, Newark, Middletown, Smyrna, Milford, Seaford, Georgetown, Elsmere, New Castle, Millsboro, Laurel, Harrington, Camden, Clayton, Lewes, Milton, Selbyville, Ocean View and Bridgeville.
If you have any questions or need further assistance, please call us on (800) 986 4725.
Feel free to book a quick teleconference with one of R&D tax specialists at a time that is convenient for you, if you would like to learn more about R&D tax credit opportunities.
R&D Tax Credit Training for DE CPAs
R&D Tax Credit Training for DE CFPs
R&D Tax Credit Training for DE SMBs
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