Delaware will soon allow businesses with less than $20 million in average revenue over the prior 4 tax years to claim a state research tax credit equal to 100% of the Federal R&E tax credit. Currently all companies are allowed a Delaware R&D credit equal to 50% of the Federal amount based on expenditures within the state.
Businesses with more than $20 million in average revenue will still be eligible the state credit at the old 50% rate. The legislation signed by Gov. Markell maintains the old annual cap of $5 million for the credit as a whole.