Agenda - 10-18-2007-3 - Laserfiche WebLink

Browse Search

percent. • Other research: For expenses not covered above, the percentages provided in the table to the right apply to the taxpayer's qualified North Carolina research expenses during the taxable year The R &D credit incorporates the Internal Revenue Code definition of qualified research expenses. The expense must meet federal R &D definitions of either "qualified research" or "basic research." The credit is not limited to research increases, but applies to every dollar of research expense. In addition, there is no eligible business test for this credit. Any corporate taxpayer may claim the R &D credits provided they meet certain wage standards, health insurance, envir6nmental impact, and safety and health program reouirements. R &D credits may be used to offset up to 50 percent of state income or franchise tax after all other credits against that tax are applied. Taxpayers may elect to claim the credit against either the income or the franchise tax. Any unused portion of the credits may be carried forward for 15 years. The R &D tax credit sunsets on January 1, 2009. North Carolina Departrnen.t of Commerce Incentives 1 6 As part of the R &D tax credit, taxpayers that have qualified North Carolina research expenses during a taxable year are allowed a credit equal to a percentage of those expenses determined in the following ._ .:.:.....:.::..:: manner. 5rriall business (annual 1 , . receipts less tha& 1 million): If the taxpayer. a small bush ess!aslof the last day of the taxable year, the business is allowed a credit of three percent. • Other research: For expenses not covered above, the percentages provided in the table to the right apply to the taxpayer's qualified North Carolina research expenses during the taxable year The R &D credit incorporates the Internal Revenue Code definition of qualified research expenses. The expense must meet federal R &D definitions of either "qualified research" or "basic research." The credit is not limited to research increases, but applies to every dollar of research expense. In addition, there is no eligible business test for this credit. Any corporate taxpayer may claim the R &D credits provided they meet certain wage standards, health insurance, envir6nmental impact, and safety and health program reouirements. R &D credits may be used to offset up to 50 percent of state income or franchise tax after all other credits against that tax are applied. Taxpayers may elect to claim the credit against either the income or the franchise tax. Any unused portion of the credits may be carried forward for 15 years. The R &D tax credit sunsets on January 1, 2009. North Carolina Departrnen.t of Commerce Incentives 1 6