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 tax credit. Until January 1st, 2027, a credit is allowed against income tax for research activities in Illinois. The credit is equal to 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.

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Learn more about Illinois' R&D Tax Credit law here and here.

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R&D Tax Credit Available:

Yes

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Eligible Entities:

C-Corporations, S-Corporations, LLCs, Partnerships

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Deadline for Tax Filing:

Due with Illinois Tax Return

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Data Required to Compute Credit:

Claim Period Qualified R&D Expenses (QREs)

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What Information is needed?

QREs for Prior 3 Years

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Credit Carryforward:

5 Years

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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.

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Specific Item to Note:

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

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Illinois R&D Tax Credits