State program
Delaware Research and Development Tax Credit
A refundable state credit that mirrors the federal calculation and pays cash to companies with no Delaware tax liability.
Program overview
Delaware modernised its research credit by removing the annual program cap and making credits fully refundable, which was a significant change for early-stage companies. Taxpayers compute the credit as a percentage of the federal credit attributable to Delaware research, with a more generous rate for small businesses. Applications are filed with the Delaware Division of Revenue after the federal return is completed, so the state claim follows the federal claim each year.
Eligibility
Taxpayers claiming a federal research credit for qualified research conducted in Delaware. Small businesses with gross receipts under $20 million receive the enhanced rate.
Benefits
Fully refundable credit paid in cash when it exceeds Delaware income tax liability.
Find out what your research actually qualifies for
A scoping conversation takes thirty minutes and costs nothing. You leave with a view on eligibility, likely credit range and the documentation you would need.