State R&D Tax Credits

State R&D Tax Credits

Delaware

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.

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