State R&D Tax Credits

State R&D Tax Credits


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.

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