North Carolina R&D Tax Credit Summary

North Carolina R&D Tax Credit, R&D Tax Credit
North Carolina State R&D Tax Credit

Refundable Tax Credit – No

The North Carolina credit for research and development has been repealed effective January 1, 2016.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%

Download A Practical Guide to Identifying, Gathering, and Documenting A Sustainable Research Tax Credit Claim

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

Carryforward

Unused R&D tax credits may be carried forward for up to 15 years.

Flow-Through Entities

This credit can be used by S Corporations claiming the credit against income tax, partnerships and trusts and estates.

How to obtain the credit? 

File Form NC-478I

Find out if you qualify for the R&D tax credit

 

SELL YOUR NOL’s AND R&D CREDITS

If your company hasn’t considered the R&D credit in the past because you have net operating losses (NOLs) and could not utilize the credit contact us today to find out which states allow you to sell your credits and losses for up to 95 cents on the dollar. Also, qualified start-up companies can now take a credit on their payroll taxes for their R&D credit, allowing your company to utilize the R&D credit immediately, even if your company does not have taxable income.
FIND OUT MORE TODAY

 

States Offering R&D Credit:

                             States Without R&D Credit

Alabama
District of Columbia
Missouri
Montana
Nevada
Oklahoma
South Dakota
Tennessee
Washington
West Virginia
Wyoming