DE HB318

Amends Delaware's research and development tax credit to provide enhanced benefits for small businesses with average annual gross receipts not exceeding $20 million.

Increases the R&D tax credit rate for qualifying small businesses from 50% to 100% of the corresponding federal research and development tax credit.

Maintains the existing 10% credit calculation for general businesses (or 50% of federal credit), while creating an alternative 20% rate for small businesses under the expense-based method.

Makes the credit election annual and independent of federal R&D tax credit determinations, allowing taxpayers to choose the calculation method that provides the greatest benefit.

Effective for tax periods beginning after December 31, 2013, while preserving the existing $5 million annual cap on total credits.