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Illinois R&D Income Tax Credit

Illinois R&D Income Tax Credit

Funds Illinois innovators through income tax credits for innovation in startups and established companies.

Between cyclesIllinois Department of RevenueUnited StatesEligible in Illinois

The Illinois R&D Income Tax Credit is a statutory, self-claimed tax credit equal to 6.5% of qualifying Illinois research and development expenses in excess of the taxpayer's base-period average. Codified at 35 ILCS 5/201(k), the credit mirrors the structure of the federal research credit under IRC §41 — requiring that qualified activities meet the four-part test of qualified purpose, technological…

Illinois income tax credit equal to 6.5% of qualifying research expenses above a base-period average, self-claimed annually with no pre-approval required from any state agency.

CycleiHow often this grant runs — e.g. annually, on a rolling basis, or a one-off call.Annual
Next deadlineiThe next date applications are due. Rolling means you can apply any time.—
Decision timeiTypical time from the deadline to the funder's decision.—
Project durationiHow long the funded work is expected to run.—
Award typeiThe form of funding — grant, equity, loan, tax credit, etc.Tax credit
Match fundingiThe share of project costs you must cover yourself. 0% = fully funded.0%
Funding pooliThe total budget available across all awards in this round.—

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Last verified: 22 Jul 2026Source: www.ilga.gov