Technology Development Tax Credit
The North Carolina Department of Revenue maintains authority to determine eligibility for this and other tax programs. For detailed information please contact the Corporate Tax Division at 919-733-8510.
Information published by the Department of Revenue concerning
corporate tax information can be reviewed by following this link.
Technology Thrives in North Carolina - thanks in part to strong state support.
Businesses with qualified North Carolina research expenses are allowed a tax credit equal to a percentage of those expenses. The allowable credits are determined by:
- Small Business status (annual receipts less than $1 million): Qualified businesses on the last day of the taxable year are allowed a credit of 3.25%.
- County Tier: Certain tax programs in North Carolina are indexed to a county ranking system. For expenses for research performed in a Tier 1 county, a business is permitted a credit of 3.25%.
- Other research: For expenses not covered above, refer to the table below for qualified research expenses during a taxable year:
|$50 - $200 million||2.25%|
|More than $200 million||3.25%|
A business with North Carolina university research expenses for the taxable year is allowed a credit equal to 20% of those expenses.