Credit Name: Research and Development Tax Credit
Expiration Date: Permanent
Does it apply to C corps and pass-through entities?: Yes
Credit Carry forward: Refundable, N/A
Description: Two methods for credit calculation: A) 10% of the lesser of 50% of current year QREs or current year QREs less a base amount (ratio of the 4 prior year’s DE QREs over DE receipts times 4 prior year average DE receipts) or B) 50% of the portion of the Federal ASC (it states AIRC but that credit no longer exists) attributable to Delaware qualified research expenditures.
Small businesses with revenue less than $20 M are eligible for a credit equal to either: A) 20% of current year DE QREs less the DE base amount or B) 100% of the portion of the Federal ASC (it states AIRC but that credit no longer exists) attributable to Delaware qualified research expenditures.
Other Notes: Application for credit approval must be submitted by 9/15 after the tax year during which the qualified research expenses were made.