- Qualified research is defined in IRC § 41(d). IRC § 41(b) as the sum of in-house research expenses and contract research expenses paid or incurred by the taxpayer during the taxable year in carrying on any trade or business of the taxpayer
- Qualifying expenditures also include basic research payments, as that term is defined in IRC § 41(e)
How to obtain the credit?
Corporations must complete and file Form IL-1120.
Refundable/Transferable Tax Credit – No
Any credit in excess of tax liability for the tax year can be carried forward for five years or until it is fully used, whichever occurs first.