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.
Learn more about Illinois' R&D Tax Credit law here and here.
R&D Tax Credit Available:
C-Corporations, S-Corporations, LLCs, Partnerships
Deadline for Tax Filing:
Due with Illinois Tax Return
Data Required to Compute Credit:
Claim Period Qualified R&D Expenses (QREs)
What Information is needed?
QREs for Prior 3 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 31st, 2027, unless additional legislation is passed.