Close

Illinois R&D Tax Credits

Illinois R&D Tax Credits

 

Find out if you qualify for R&D tax credits in Illinois and recharge your business.

 

Illinois provides a research and development (R&D) tax credit. Until January 1st, 2027, an R&D credit is allowed against income tax for research activities in Illinois state. The credit equals 6.5% of qualifying expenditures over a comparative base amount. The base amount is the average of the prior three years of QREs attributed to Illinois. Excess credits not utilized in a tax year can be carried forward up to five years.

 

Businesses or taxpayers cannot take this credit for the following kinds of activities:

• Research conducted after the beginning of commercial production;

• Research adapting an existing product or process to a particular customer's need;

• Duplication of an existing product or process;

• Surveys or studies;

• Research relating to specific internal-use computer software;

• Research conducted outside Illinois;

• Research in the "soft sciences", social sciences, arts, or humanities;

• Research funded by another person (or government entity).

 

Illinois' most significant R&D sectors are pharmaceuticals, machinery, and, not surprisingly, agricultural. The state also sees innovations in the banking and insurance sectors.

 

Learn more about Illinois' R&D Tax Credit law or claim Illinois' R&D Tax Credits here.

 

R&D Tax Credit Available:

Yes

 

Eligible Entities:

C-Corporations, S-Corporations, LLCs, Partnerships

 

Deadline for Tax Filing:

Due with the Illinois Tax Return

 

Data Required to Compute Credit:

Claim Period Qualified R&D Expenses (QREs)

 

What Information is needed?

QREs for Prior 3 Years

 

Credit Carryforward:

5 Years

 

The R&D tax credit equals:

  • 6.5% on the excess of IL-qualified research expenses over the average amount of QREs for the three preceding taxable years.

 

Specific Item to Note:

  • The Illinois research credit will expire on December 31, 2027, unless additional legislation is passed.

 

Ready to calculate your R&D tax credits?

To get an estimate of the potential value of your unclaimed R&D Tax Credits, try out our credit calculator.

 

Track Your Refund

 
Track Federal Refund Check Federal Amended Return Refund

Check your State Refund

Client Login

 

Refer a Friend

.