Delaware Permanently Extends State R&D Credit

On July 1, 2013, Delaware Governor Jack Markell (D) signed HB 143, which permanently extended Delaware’s credit for increasing research activities (also known as the R&D Tax Credit). Delaware adheres to the federal credit statute, I.R.C. § 41, which includes a sunset provision that has been extended each time the credit has come up for review. Delaware’s bill eliminates the sunset provision for State purposes, thus ensuring that Delaware businesses will be able to count on State benefits without the need for Congress to timely reenact the Federal credit. Delaware has joined a growing number of states that are updating and expanding their research and development incentive programs.