State program
Illinois Research and Development Credit
An incremental credit for research conducted in Illinois, extended by the legislature through the end of the decade.
Program overview
Illinois grants a credit equal to a percentage of the increase in qualified research expenses conducted within the state over the average of the three preceding years. The credit has been extended several times and currently runs through the 2027 tax year. Illinois follows the federal definition of qualified research but restricts eligible spending to activities physically performed in Illinois, so multi-state taxpayers must apportion wages, supplies and contract research carefully.
Eligibility
Corporations and pass-through entities with increasing qualified research expenditures conducted in Illinois. Pass-through entities may distribute the credit to partners and shareholders.
Benefits
Non-refundable credit against Illinois 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.