Delaware · research and development · DE-RD-001
Research and Development Tax Credit
Publication revised September 24, 2026. Sourcebook page 74.
Credit amount / calculation
Regular method: 10% of Delaware research expenses above the base, or 20% for a qualifying small business. Alternatively, use 50% (100% for a qualifying small business) of the apportioned federal simplified credit.
Business fit and eligible activity
Qualified Delaware research can generate a state credit for a wood-products manufacturer. Qualified research activity. Ordinary production, routine quality control and an equipment purchase alone do not qualify.
Eligibility and practical use
For forest products, research credits usually live on the mill floor rather than in a laboratory. Scanner settings, drying schedules, process-control changes, product testing, and equipment modifications can matter when the work is experimental rather than routine. A logging company has a narrower path, but equipment-control, software, or process-development work can sometimes qualify if it satisfies the same technical tests.
Illustrative business benefit
An eligible small mill has $200,000 of accepted Delaware research expenses above the regular-method base. Its credit is $40,000 at 20%. If $15,000 offsets eligible tax, the remaining approved $25,000 is refundable.
Timing / first action
Tax-year claim: document the eligible expense, hire or placed-in-service date and meet any separate certification deadline. Identify the technical uncertainty and start contemporaneous project records before trying to calculate the credit.
Official sources
- Delaware Code, Title 30, Sections 2070-2075 - Research Credit (delaware.gov)
- Delaware Division of Revenue - Blue Collar Jobs Act (delaware.gov)
- Delaware Code, Title 30, Sections 2070-2075 - Research Credit (floridarevenue.com)
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