Credit Name: Credit for Research and Development Expenses
Expiration Date: 12/31/2013
Does it apply to C corps and pass-through entities?: Yes
Credit Carry forward: No Carry Back. Carry Forward 15 years. No Transfer.
Description: 2 methods for credit calculation: A) 10% of the lesser of 50% of current year QREs or current year QREs less the average of the four prior year’s QREs or B) 50% of the portion of the Federal AIRC credit that can be attributed to Delaware qualified research expenditures.
Other Notes: Application for credit must be received by 9/15 of the tax year, and taxpayer will be notified by 12/15 regarding amount of credit. Taxpayer may then amend the original filing, offsetting no more than 50% of the remaining tax liability in the amended or carryforward years.
Delaware has allocated $5M in total credits, so in cases where total credit applications exceed $5M, credits allowed are reduced proprotionally.