Delaware R&D Tax Credit Summary
DE R&D Tax Credit Available

Yes


Eligible Entities

C-Corporations, S-Corporations, LLCs, Partnerships


Deadline for Tax Filing

Application due by 9/15


Data Required to Compute Credit
  • Claim Period Qualified R&D Expenses (QREs)
  • QREs for Prior 4 Years
  • Gross Receipts for Prior 4 Years

Credit Carryforward

15 Years


DE R&D Credit Summary

For businesses with revenue of more than $20 million:

  • 10% of the excess of the taxpayer’s total Delaware QREs for the taxable year over the base amount; or
  • 50% of Delaware’s apportioned share of the taxpayer’s federal research and development tax credit calculated using the alternative incremental credit method.


For Small Businesses with revenue less than $20 million:

  • 20% of the excess of the taxpayer’s total Delaware QREs for the taxable year over the base amount; or
  • 100% of Delaware’s apportioned share of the taxpayer’s federal research and development tax credit calculated using the alternative incremental credit method.

Special Notes
  • For purposes of the credit, a "small business" means any taxpayer with average annual gross receipts of $20 million or less.
  • Delaware R&D credit may not exceed 50% of the taxpayer's tax liability in any one taxable year.
  • Delaware has a statewide cap of $5 million per fiscal year. Whenever statewide applications exceed $5 million, R&D tax credits are pro ratad accordingly.

DE Research Tax Credit

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