Illinois R&D Income Tax Credit

Illinois' R&D Income Tax Credit is administered by the Illinois Department of Revenue under 35 ILCS 5/201(k). It is a self-claimed income tax credit, not a competitive grant, and no pre-certification is required. The credit currently runs through 2027 unless the legislature renews it again. The credit equals 6.5% of qualifying Illinois research expenses above the base-period average, using a federal-style QRE definition. Amounts run from $1,000 to $2 million, with a median near $50,000, and the credit carries forward five years. It fits for-profit companies with Illinois research spending across deep-tech sectors. The practical work is tax accounting rather than application writing: track Illinois QREs precisely, keep the base-period math defensible, and avoid double-counting the same costs elsewhere. IDOR processes the claim directly on the return, so firms with steady in-state R&D spend are better positioned than teams chasing a one-off filing. The 2027 sunset also makes timing matter, because companies need enough Illinois tax liability and enough documented spend to use the credit before the current window closes.

Each grant below is a distinct funding opportunity with its own eligibility, scope, and deliverables.