Delaware R&D Tax Credit

Delaware R&D Tax Credit

Supports Delaware firms with innovation credits for experimentation and technology development.

Eligibility · United States · US-DE

The Delaware Division of Revenue is the state tax authority within the Delaware Department of Finance responsible for administering Delaware state income tax filings and business licensing. Delaware does offer several state tax credits relevant to businesses, including credits for research and development activity, Brownfield redevelopment, historic preservation, and new business facility investment, all processed through the Division of Revenue on annual tax returns. These credits reduce state income tax liability and are claimed on return schedules rather than through a competitive grant application process.

Delaware's R&D tax credit, like counterparts in other states, is linked to the federal R&D credit framework under IRC §41 and applies to qualifying expenditures made within Delaware. The Division of Revenue processes these claims administratively rather than through a discretionary awards process. Credit rates, eligibility thresholds, and carryforward periods are established by Delaware statute and are subject to amendment by the General Assembly.

Organisations seeking non-tax-credit, competitive grant funding in Delaware should look to other state agencies, notably the Delaware Division of Small Business and the Delaware Prosperity Partnership, which administer economic development grant programs. The Division of Revenue's role is limited to tax administration; it does not issue discretionary grants, RFPs, or competitive funding awards. Businesses with questions about Delaware R&D credit eligibility should consult the Division of Revenue's business tax guidance or engage a Delaware tax advisor.