THE LATEST IN TAX CREDITS

About the Author


Phil Williams, JD BSME
Managing Director, Engineering Services
Phil is the Managing Director of Tri-Merit's engineering and tax controversy teams. He is based out of Grand Rapids, Michigan.

Illinois Research and Development Credit Extended

On Thursday July 6, the Illinois legislature enacted House Amendment Number 3.  While the bill has a broad range of effects, it specifically extends the Illinois Research and Development Credit through 2021.  In addition, because the credit had lapsed for the last 18 months, since December 31, 2015, the extension allows for retroactive application; including expenses incurred and credits generated in 2016.

The mechanics of the credit will be as they were prior to the lapse.  The credit is calculated at 6.5% of qualified development expenses incurred in Illinois over and above a base amount equal to the average Illinois qualified expenses for the prior three years.

If you have any questions on how reinstatement of the Illinois credit may affect your business, either in 2016 or moving forward, please contact us here at Tri-Merit.