Form 2071AC 0007 "Application and Computation Schedule for Claiming Delaware Research and Development Tax Credits" - Delaware

What Is Form 2071AC 0007?

This is a legal form that was released by the Delaware Division of Revenue - a government authority operating within Delaware. As of today, no separate filing guidelines for the form are provided by the issuing department.

Form Details:

  • Released on August 1, 2017;
  • The latest edition provided by the Delaware Division of Revenue;
  • Easy to use and ready to print;
  • Quick to customize;
  • Compatible with most PDF-viewing applications;
  • Fill out the form in our online filing application.

Download a fillable version of Form 2071AC 0007 by clicking the link below or browse more documents and templates provided by the Delaware Division of Revenue.

ADVERTISEMENT
ADVERTISEMENT

Download Form 2071AC 0007 "Application and Computation Schedule for Claiming Delaware Research and Development Tax Credits" - Delaware

573 times
Rate (4.3 / 5) 40 votes
Reset
Print Form
DIVISION OF REVENUE
STATE OF DELAWARE
FORM 2071AC 0007
820 North French St.
APPLICATION AND COMPUTATION SCHEDULE FOR CLAIMING
P.O. Box 8763
Wilm. DE 19899-8911
DELAWARE RESEARCH AND DEVELOPMENT TAX CREDITS
FORM 2071AC MUST BE COMPLETED AND SUBMITTED ON OR BEFORE SEPTEMBER 15TH AFTER THE END
OF THE TAXABLE YEAR DURING WHICH THE QUALIFIED RESEARCH & DEVELOPMENT EXPENSES WERE MADE.
PART 1 - NAME AND ADDRESS
1.
TAX PERIOD ENDING DATE
or
Federal Employer Identification Number
Social Security Number
2. Name of Taxpayer:
3. Address:
State:
Zip Code:
4. Delaware Address
:
State:
Zip Code:
(if different from above)
5.
Contact Person
Telephone Number
Fax Number
E-mail Address
PART B – DELAWARE RESEARCH & DEVELOPMENT ELECTION AND COMPUTATION
SELECT A METHOD TO COMPUTE THE DELAWARERE SEARCH& DEVELOPMENT CREDIT. ONLY ONE METHOD MAY BE SELECTED
TO COMPUTE THE CREDIT. THE METHOD USED TO COMPUTE THE DELAWARE RESEARCH & DEVELOPMENT CREDIT IS AN ANNUAL
ELECTION. THE ELECTION IS INDEPENDENT OF THE METHOD USED TO COMPUTE THE FEDERAL RESEARCH & DEVELOPMENT CREDIT.
PLEASE ATTACH A COPY OF FEDERAL FORM 6765 TO THIS APPLICATION. IF A CONSOLIDATED CORPORATE INCOME TAX RETURN IS
FILED, PLEASE ATTACH A PROFORMA FORM 6765 FOR THE CORPORATE APPLICANT.
Method A - Ten percent of the excess of the taxpayer’s total Delaware qualified research and developement
expenses for the taxable year over the taxpayer’s Delaware base amount.
1.
Total Delaware qualified R&D expenses for the 4 years preceding the credit year ...................... $
2.
Total Delaware gross receipts for the 4 years preceding the credit year ...................................... $
3.
Delaware Fixed Based Percentage. Divide Line 1 by Line 2 ........................................................
%
4.
Average annual gross receipts for the 4 years preceding the credit year ..................................... $
5.
Delaware Base Amount. Multiply Line 3 by Line 4 ........................................................................ $
6.
Total Delaware qualified R&D expenses for the credit year .......................................................... $
7.
Subtract Line 5 from Line 6 ........................................................................................................... $
8.
Multiply Line 6 by 50% .................................................................................................................. $
9.
Enter the smaller of Line 7 or Line 8 ............................................................................................. $
10.
Delaware R&D Credit. Multiply Line 9 by 10% .............................................................................. $
Method B - Fifty percent of Delaware’s apportioned share of taxpayer’s federal research and development tax credit
calculated usign the alternative incremental credit method under Section 41(c)(4) of the Internal Revenue
Code of 1986, using federal definitions and methodology.
1.
Federal Alternative Incremental Credit from Line 39, Federal Form 6765 .................................... $
2.
Delaware qualified R&D expenses for the credit year .................................................................. $
3.
Total qualified R&D expenses for the credit year .......................................................................... $
4.
Divide Line 2 by Line 3 .................................................................................................................
%
5.
Multiply Line1 by Line 4 ................................................................................................................ $
6.
Delaware R&D Credit. Multiply Line 5 by 50% ............................................................................ $
STOP: IF THE BUSINESS ENTITY FOR WHICH THE CREDIT HAS BEEN APPROVED IS:
C CORPORATION - Enter the Delaware R&D Credit on Form 700, Delaware Income Tax Credit Schedule, Line 10(a)
S CORPORATION - Multiply the Delaware R&D Credit by the percentage of stock owned by each shareholder. Enter the result on Form
700 Delaware Income Tax Credit Schedule, Line 10(b).
PARTNERSHIP - Multiply the Delaware R&D Credit by the percentage ownership of each partner. Enter the result on Form 700, Delaware
Income Tax Credit Schedule, Line 10(c).
INDIVIDUAL& SOLE PROPRIETOR - Enter the Delaware R&D Credit on Form 700, Delaware Income Tax Credit Schedule, Line 10(d).
NAME
TITLE
DATE
*DF70017019999*
(Rev 07/2017)
DF70017019999
Reset
Print Form
DIVISION OF REVENUE
STATE OF DELAWARE
FORM 2071AC 0007
820 North French St.
APPLICATION AND COMPUTATION SCHEDULE FOR CLAIMING
P.O. Box 8763
Wilm. DE 19899-8911
DELAWARE RESEARCH AND DEVELOPMENT TAX CREDITS
FORM 2071AC MUST BE COMPLETED AND SUBMITTED ON OR BEFORE SEPTEMBER 15TH AFTER THE END
OF THE TAXABLE YEAR DURING WHICH THE QUALIFIED RESEARCH & DEVELOPMENT EXPENSES WERE MADE.
PART 1 - NAME AND ADDRESS
1.
TAX PERIOD ENDING DATE
or
Federal Employer Identification Number
Social Security Number
2. Name of Taxpayer:
3. Address:
State:
Zip Code:
4. Delaware Address
:
State:
Zip Code:
(if different from above)
5.
Contact Person
Telephone Number
Fax Number
E-mail Address
PART B – DELAWARE RESEARCH & DEVELOPMENT ELECTION AND COMPUTATION
SELECT A METHOD TO COMPUTE THE DELAWARERE SEARCH& DEVELOPMENT CREDIT. ONLY ONE METHOD MAY BE SELECTED
TO COMPUTE THE CREDIT. THE METHOD USED TO COMPUTE THE DELAWARE RESEARCH & DEVELOPMENT CREDIT IS AN ANNUAL
ELECTION. THE ELECTION IS INDEPENDENT OF THE METHOD USED TO COMPUTE THE FEDERAL RESEARCH & DEVELOPMENT CREDIT.
PLEASE ATTACH A COPY OF FEDERAL FORM 6765 TO THIS APPLICATION. IF A CONSOLIDATED CORPORATE INCOME TAX RETURN IS
FILED, PLEASE ATTACH A PROFORMA FORM 6765 FOR THE CORPORATE APPLICANT.
Method A - Ten percent of the excess of the taxpayer’s total Delaware qualified research and developement
expenses for the taxable year over the taxpayer’s Delaware base amount.
1.
Total Delaware qualified R&D expenses for the 4 years preceding the credit year ...................... $
2.
Total Delaware gross receipts for the 4 years preceding the credit year ...................................... $
3.
Delaware Fixed Based Percentage. Divide Line 1 by Line 2 ........................................................
%
4.
Average annual gross receipts for the 4 years preceding the credit year ..................................... $
5.
Delaware Base Amount. Multiply Line 3 by Line 4 ........................................................................ $
6.
Total Delaware qualified R&D expenses for the credit year .......................................................... $
7.
Subtract Line 5 from Line 6 ........................................................................................................... $
8.
Multiply Line 6 by 50% .................................................................................................................. $
9.
Enter the smaller of Line 7 or Line 8 ............................................................................................. $
10.
Delaware R&D Credit. Multiply Line 9 by 10% .............................................................................. $
Method B - Fifty percent of Delaware’s apportioned share of taxpayer’s federal research and development tax credit
calculated usign the alternative incremental credit method under Section 41(c)(4) of the Internal Revenue
Code of 1986, using federal definitions and methodology.
1.
Federal Alternative Incremental Credit from Line 39, Federal Form 6765 .................................... $
2.
Delaware qualified R&D expenses for the credit year .................................................................. $
3.
Total qualified R&D expenses for the credit year .......................................................................... $
4.
Divide Line 2 by Line 3 .................................................................................................................
%
5.
Multiply Line1 by Line 4 ................................................................................................................ $
6.
Delaware R&D Credit. Multiply Line 5 by 50% ............................................................................ $
STOP: IF THE BUSINESS ENTITY FOR WHICH THE CREDIT HAS BEEN APPROVED IS:
C CORPORATION - Enter the Delaware R&D Credit on Form 700, Delaware Income Tax Credit Schedule, Line 10(a)
S CORPORATION - Multiply the Delaware R&D Credit by the percentage of stock owned by each shareholder. Enter the result on Form
700 Delaware Income Tax Credit Schedule, Line 10(b).
PARTNERSHIP - Multiply the Delaware R&D Credit by the percentage ownership of each partner. Enter the result on Form 700, Delaware
Income Tax Credit Schedule, Line 10(c).
INDIVIDUAL& SOLE PROPRIETOR - Enter the Delaware R&D Credit on Form 700, Delaware Income Tax Credit Schedule, Line 10(d).
NAME
TITLE
DATE
*DF70017019999*
(Rev 07/2017)
DF70017019999
GENERAL INSTRUCTIONS FOR COMPLETION OF
FORM 2071AC 0007
The Delaware Division of Revenue must first approve any taxpayer electing to qualify for the Delaware Research & Development
Tax Credits. After receiving tax credit approval from the Delaware Division of Revenue, the amount of approved credit on
Delaware Form 2071AC must be transferred to the appropriate line on Delaware Form 700. Delaware Forms 700 and 2071AC
must be attached to each annual income tax return approved for the credit. If you need assistance completing this form, please
contact Steve Seidel, DE Division of Revenue, 820 N. French Street, Wilmington, DE 19801, 302-577-8455, stephen.seidel@
state.de.us.
SPECIFIC INSTRUCTIONS
Select a method to compute the delaware research & development credit. Only one method may be selected to compute
the credit. Please attach a copy of federal form 6765 to this application. If a consolidated corporate income tax return is filed,
please attach a proforma federal form 6765 for the corporate applicant.
METHOD A – Ten Percent Of The Excess Of The Taxpayer’s Total Delaware Qualified Research & Development
Expenses For The Taxable Year Over The Taxpayer’s Delaware Base Amount.
Line 1.
Enter the total Delaware qualified research & development expenses for the four years immediately preceding
the credit year.
Line 2.
Enter the total Delaware gross receipts for the four years immediately preceding the credit year.
Line 3.
Divide Line 1 by Line 2. This is the Delaware Fixed Base Percentage.
Line 4.
Enter the average annual gross receipts for the four years immediately preceding the credit year.
Line 5.
Multiply Line 3 by Line 4. This is the Delaware Base Amount.
Line 6.
Enter the total Delaware qualified research & development expenses for the credit year.
Line 7.
Subtract Line 5 from Line 6. If the result is zero or less, enter zero.
Line 8.
Multiply Line 6 by 50%.
Line 9.
Enter the smaller of Line 7 or Line 8.
Line 10. This is your Delaware Research & Development Credit. Multiply Line 9 by 10%.
METHOD B – Fifty Percent Of Delaware’s Apportioned Share Of Taxpayer’s Federal Research & Development Tax
Credit Calculated Using The Alternative Incremental Credit Method Under Section 41(C)(4) Of The Internal Revenue
Code Of 1986, Using Federal Definitions And Methodology.
Line 1.
Enter the Federal Alternative Incremental Credit from Line 39, Federal Form 6765.
Line 2.
Enter the Delaware qualified research & development expenses for the credit year.
Line 3.
Enter all qualified research & development expenses for the credit year.
Line 4.
Divide Line 2 by Line 3.
Line 5.
Multiply Line 1 by Line 4.
Line 6.
This is your Delaware Research & Development Credit. Multiply Line 5 by 50%.
STOP: IF THE BUSINESS ENTITY FOR WHICH THE CREDIT HAS BEEN APPROVED IS:
C CORPORATION – Enter the Delaware R&D Credit on Form 700, Delaware Income Tax Credit Schedule, Line 10(a).
S CORPORATION – Multiply the Delaware R&D Credit by the percentage of stock owned by each shareholder. Enter the
result on Form 700, Delaware Income Tax Credit Schedule, Line 10(b).
PARTNERSHIP – Multiply the Delaware R&D Credit by the percentage ownership of each partner. Enter the result on
Form 700, Delaware Income Tax Credit Schedule, Line 10(c).
INDIVIDUAL & SOLE PROPRIETOR – Enter the Delaware R&D Credit on Form 700, Delaware Income Tax Credit
Schedule, Line 10(d).
As of Jauary 1, 2017 the Research & Development Tax Credit has changed. After January 1, 2017, there is no longer a
$5,000,000 cap on total tax credits issued by the State of Delaware and the R&D Tax Credits are now refundable.
Page of 2