Research Tax Credit Illinois: Key Benefits Explained

Illinois and the Research and Development (R&D) Tax Credit

The Illinois R&D credit is generated from qualified research activities (QRAs) performed within the state. Qualifying activities are defined in Section 41 of the Internal Revenue Code as “a new or improved function, performance, or reliability or quality.”

Process improvement activities include:

Identifying uncertainty concerning the development or improvement of a business component;
Identifying one or more alternatives intended to eliminate that uncertainty; and
Identifying and conducting a process of evaluating the alternatives (e.g., through modeling, simulation, or a systematic trial-and-error methodology).

The R&D Tax Credit is a credit that is available across various industries, such as:

Agriculture
Automotive
Aviation
Biotechnology
Engineering
Farming
Food and Beverage
Logistics
Manufacturing
Oil and Gas
Software
Transportation

State Credit Name: The Illinois Research and Development Credit (1299-D, lines 24-33)

Expiration Date: December 31, 2021

Who Can Apply? Corporations and Flow-through entities

Credit Carry Forward: Unused credit can be carried forward up to 5 years.

About the Credit: A non-refundable credit of 6.5% of the QRE’s for qualifying research activities performed in Illinois.

Click here to find out if you qualify for the federal research credit.

Swanson Reed in Illinois provides R&D tax credit consulting and advisory services to Chicago, Aurora, Rockford, Joliet, Naperville, Springfield, Peoria, Elgin, Waukegan, Champaign, Bloomington, Decatur, Evanston, Des Plaines, Berwyn, Wheaton, Carbondale, Mount Prospect, Oak Lawn and Skokie.

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.

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