The North Carolina credit for research and development has been repealed effective January 1, 2016. Prior to January 1, 2016, a credit was available equal to a percentage of the expenses as follows:
- Small businesses—3.25%
- Research performed in a development Tier 1 area— 3.25%
- North Carolina research university expenses—20%
- Eco-industrial park—35%
Effective for taxable years beginning on or after January 1, 2011, other research expenses:
- 1.25% for expenses up to $50 million
- 2.25% for expenses between $50 million and $200 million; or
- 3.25% for expenses above $200 million
How to obtain the credit?
File Form NC-478I
Refundable/Transferable Tax Credit – No
Unused R&D tax credits may be carried forward for up to 15 years.
This credit can be used by S Corporations claiming the credit against income tax, partnerships and trusts and estates.
Find out if you qualify for the R&D tax credit
States and the R&D Credit: