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Virginia Free Printable 2019 Form RDC - Application for Research and Development Expenses Tax Credit for 2020 Virginia Application for Research and Development Expenses Tax Credit

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Application for Research and Development Expenses Tax Credit
2019 Form RDC - Application for Research and Development Expenses Tax Credit

VIRGINIA Form RDC Tax Year Application for Research and Development Expenses Tax Credit __________ Submit this form and supporting documentation by July 1. This credit must be approved before being claimed on your return. See the instructions for details. Taxpayer Information Business Name  FEIN  SSN Trading As   Fiscal Year Filer _______________ to _______________ Street Address City, State, ZIP Code Email Address Contact Name NAICS Code Phone Number Fax Number NAICS Description Instructions To compute your credit using the primary credit computation, complete Lines 1-7 of Section 1. Enter all Virginia qualified research and development amounts in Column A. If any portion of Virginia qualified research and development was conducted in conjunction with a Virginia public college or university, enter those amounts in Column B. Amounts reported on Lines 1-4 of Column A must include any expenses reported on Lines 1-4 of Column B. If electing the alternative simplified method of computing the credit, skip to Section 2. All applicants must complete Section 3. Round to the nearest whole dollar. Column A All Qualified Research and Development Amounts 1. Virginia Qualified Research and Development Expenses. Enter amount paid or incurred during the calendar year. (See Schedule A, Section 1, Line 4, Columns A and B). $ Section 1 – Primary Credit Calculation .00 Column B College and University Related Research and Development Amounts $ 2. College and University Expenses Percentage. If expenses were incurred in conjunction with a Virginia college or university, divide the amount on Line 1, Column B by the amount on Line 1, Column A. Enter in Column B. .00 % 3. Virginia Base Amount for the Taxable Year. Enter the amount from Schedule B, Line 4a in Column A. College and University Base Amount. If expenses were incurred in conjunction with a Virginia college or university, multiply the amount in Column A by the percentage on Line 2 and enter in Column B. $ .00 $ .00 $ .00 $ .00 Eligible College and University Research Expenses. Enter in Column B the lesser of $300,000 or the amount from Line 4, Column B. $ .00 $ .00 6. Credit Computation. Multiply Line 5, Column A by 15% (0.15) and enter in Column A. Multiply Line 5, Column B by 20% (0.2) and enter in Column B. $ .00 $ .00 7. Credit Requested. Enter the greater of Line 6, Column A (not to exceed $45,000) or Column B (not to exceed $60,000). $ .00 4. Adjusted Expenses Amount. Subtract Line 3 from Line 1. 5. Total Eligible Research Expenses. Enter in Column A the lesser of $300,000 or the amount from Line 4, Column A. Va. Dept. of Taxation  3101050   Rev. 08/19 Page 1 VIRGINIA Form RDC Page 2 Tax Year Application for Research and Development Expenses Tax Credit Section 2 – Alternative Simplified Credit Calculation Column A All Qualified Research and Development Amounts See instructions and Schedule C for information on calculating the Adjusted Calendar Year Qualified Research and Development Expenses. 1. Total Adjusted Calendar Year Qualified Research and Development Expenses. Enter the amount(s) from Schedule C, Line 4e in the applicable column(s). Taxpayers without qualified research and development expenses for the preceding 3 taxable years, enter the applicable amount(s) from Schedule C, Line 1a in the applicable column(s). __________ Column B College and University Related Research and Development Amounts $ .00 $ .00 $ .00 $ .00 $ .00 2. Credit Computation. If you incurred research and development expenses for the 3 preceding taxable years, check here and multiply the amount on Line 1, Column A and Line 1, Column B (if applicable) by 10% (0.1). If you did not incur research and development expenses for the 3  preceding taxable years, check here and multiply the amount on Line 1, Column A and Line 1, Column B (if applicable) by 5% (0.05). 3. Credit Requested. Enter the greater of Line 2, Column A (not to exceed $45,000) or Column B (not to exceed $60,000). Section 3 – Credit Information 1. Number of full time employees during the year for which the credit is sought. 2. Total gross receipts or anticipated gross receipts for the taxable year the credit is sought. 3. If research was conducted in conjunction with a Virginia public or private college or university, enter name of college or university. Enclose a copy of the agreement. 4. Have you ever received a federal credit for these research activities?  Yes  No 5. If you applied for any other Virginia tax credits this year, identify the credit(s) below. 6. Research Field:  Biotechnology   Cyber Security  Industrial  Engineering   Food & Beverage Development   Other ______________________  Medical  Technology 7. Provide: (1) A description of your research project(s). (2) A summary of how this research qualifies as defined in IRC § 41(d). 8. Do you conduct research and development in Virginia on human cells or tissue derived from induced abortions or from stem cells obtained from human embryos?  Yes  No 9. If you are a pass-through entity, do you plan to allocate your credit?  Yes  No I (we) the undersigned declare, under the penalties provided by law, that this form (including any accompanying schedules, statements, and enclosures) has been examined by me (us) and is, to the best of my (our) knowledge and belief, a true, correct, and complete application, made in good faith pursuant to the income tax laws of the Commonwealth of Virginia. Authorized Signature Title Printed Name Phone Number Email Address Fax Number Page 2 Date Form RDC Schedule A Research and Development Expenses Tax Credit Summary of Qualified Expenses Name as it Appears on Form RDC Tax Year ___________  FEIN  SSN Supplemental Forms Checklist Prior to completing the Form RDC Schedule A, qualified expenses must be recorded on the applicable expense forms. Check the boxes below to indicate which supplemental forms have been used to complete this schedule. See the instructions on these forms for details. Schedule RD-CON, Research and Development Tax Credits Schedule of Contract Research Expenses: Complete and submit this schedule if claiming the credit on the basis of contract research expenses. Schedule RD-SUP, Research and Development Tax Credits Schedule of Supply Expenses: Complete and submit this schedule if claiming the credit on the basis of supplies used in the conduct of qualified research. Schedule RD-WAGE, Research and Development Tax Credits Schedule of Qualified Wages: Complete and submit this schedule if claiming the credit on the basis of qualified wages. Instructions for Schedule A Do not include expenses incurred in relation to research conducted in Virginia on human cells or tissue derived from induced abortions or stem cells obtained from embryos. See the Form RDC instructions and IRC § 41 for additional requirements regarding qualified research and development expenses. Section 1 – Summary of Expenses: All filers must complete Section 1. In Column A, enter the total amount of qualified research and development expenses that were reported on the expense schedule(s) listed above. If claiming the Research and Development Expenses Tax Credit for expenses incurred in connection with a college or university, enter those amounts in Column B. The amounts reported in Column A must include the amounts entered in Column B. Section 2 – List of Colleges & Universities: Filers who are claiming the credit based on college and university related expenses must report the names of the institutions in Section 2. A copy of the research agreement must also be enclosed with the Form RDC. See the R&D Enclosure Checklist on Page 8 for additional information. Section 1 – Summary of Expenses Column A All Virginia Expenses Expense Type Column B College and University Related Expenses 1. Contract Research Expenses Column A: Enter amount from Schedule RD-CON, Column G. Column B: Enter the amount associated with a college or university. $ .00 $ .00 2. Supply Expenses Column A: Enter the amount from Schedule RD-SUP, Column C. Column B: Enter the amount associated with a college or university. $ .00 $ .00 3. Wages Column A: Enter the amount from Schedule RD-WAGE, Column C. Column B: Enter the amount associated with a college or university. $ .00 $ .00 4. Total Qualified Expenses Column A: Add Column A, Lines 1-3 and enter result in Column A, Line 4. Column B: Add Column B, Lines 1-3 and enter result in Column B, Line 4. $ .00 Section 2 – List of Colleges & Universities 1. 6. 2. 7. 3. 8. 4. 9. 5. 10. Va. Dept. of Taxation  1600041  Rev. 08/19 Page 3 $ .00 Research and Development Expenses Tax Credit Worksheet for Computing Virginia Base Amount (Primary Method) Form RDC Schedule B Tax Year _________ Use this schedule when computing the credit using the Primary Credit Calculation. Name as it Appears on Form RDC  FEIN  SSN Section 1 – VA Qualified Research and Development Expenses Fiscal year filers: Include expenditures and gross receipts for Calendar Year 2019 (CY), regardless of fiscal year (FY) incurred. 1a. VA Qualified Research and Development Expenses in CY 2019. For FY filers, this will include a portion of 2 taxable years. .00 1b. Short year filers only: Enter the number of months included in the short year. .00 1c. Short year filers only: Divide the number of months in Line 1b by 12. .00 Section 2 – Determine the Fixed Base Percentage The Average Qualified Research and Development Expenses for the 3 taxable years ending before the CY 2019. 2a. Expenses for the 3rd preceding taxable year. CY filers: enter expenses for Taxable Year 2016. FY filers: enter expenses for Taxable Year 2015. .00 2b. Expenses for the 2nd preceding taxable year. CY filers: enter expenses for Taxable Year 2017. FY filers: enter expenses for Taxable Year 2016. .00 2c. Expenses for the preceding taxable year. CY filers: enter expenses for Taxable Year 2018. FY filers: enter expenses for Taxable Year 2017. .00 2d. Total Expenses. Add Lines 2a-2c. .00 2e. Average Qualified Research and Development Expenses for the Prior 3 Taxable Years. Divide amount on Line 2d by 3. .00 The Average Total Gross Receipts for the 3 taxable years ending before the CY 2019. 2f. Gross receipts for the 3rd preceding taxable year. CY filers: enter the gross receipts for Taxable Year 2016. FY filers: enter gross receipts for Taxable Year 2015. .00 2g. Gross receipts for the 2nd preceding taxable year. CY filers: enter gross receipts for Taxable Year 2017. FY filers: enter gross receipts for Taxable Year 2016. .00 2h. Gross receipts for the preceding taxable year. CY filers: enter gross receipts for Taxable Year 2018. FY filers: enter gross receipts for Taxable Year 2017. .00 2i. Total Gross Receipts. Add Lines 2f through 2h. .00 2j. Average Gross Receipts for Prior 3 Taxable Years. Divide Line 2i by 3. .00 2k. Percentage of Virginia Qualified Research and Development Expenses. Divide Line 2e by 2j (round to 4 decimal places). % Section 3 – Determine the Virginia Base Amount The Average Total Gross Receipts for the 4 taxable years ending before the CY 2019. 3a. Gross receipts for the 4th preceding taxable year. CY filers: enter gross receipts for Taxable Year 2015. FY filers: enter gross receipts for Taxable Year 2014. .00 3b. Gross receipts for the 3rd preceding taxable year. CY filers: enter gross receipts for Taxable Year 2016. FY filers: enter gross receipts for Taxable Year 2015. .00 3c. Gross receipts for the 2nd preceding taxable year. CY filers: enter gross receipts for Taxable Year 2017. FY filers: enter gross receipts for Taxable Year 2016. .00 3d. Gross receipts for the preceding taxable year. CY filers: enter gross receipts for Taxable Year 2018. FY filers: enter gross receipts for Taxable Year 2017. .00 3e. Total Gross Receipts. Add Lines 3a through 3d. .00 3f. Average Gross Receipts for Prior 4 Taxable Years. Divide Line 3e by 4. .00 3g. Base Amount. Calendar Year Filers: Multiply Line 2k by Line 3f. Short Year Filers: Multiply Line 2k by Line 3f. Then multiply the product by Line 1c. .00 Section 4 – Virginia Base Amount 4a. Virginia Base Amount. Your Virginia Base Amount is the greater of the amount on Line 3g OR 50% (0.5) of the 2019 Virginia Qualified Expenses from Line 1a. Enter here and on Form RDC, Section 1, Line 3, Column A. Va. Dept. of Taxation  1600042  Rev. 08/19 Page 4 .00 Form RDC Schedule C Tax Year Research and Development Expenses Tax Credit Worksheet for Determining Adjusted Research and Development Expenses (Alternative Simplified Method) _________ Use this schedule when computing the credit using the Alternative Simplified Credit Calculation. Name as it Appears on Form RDC  FEIN  SSN Section 1 – Virginia Qualified Research and Development Expenses Fiscal year filers: Include expenditures for Calendar Year 2019 (CY), regardless of fiscal year (FY) incurred. 1a. Virginia Qualified Research and Development Expenses in CY 2019. In Column A, enter total qualified research and development expenses from Schedule A, Section 1, Line 4, Column A. In Column B, enter the total qualified college and university related research expenses from Schedule A, Section 1, Line 4, Column B (if any). For FY filers, this will include a portion of 2 taxable years. Line 1a – Column A Line 1a – Column B .00 .00 1b. Short year filers only: Enter the number of days included in the short year. .00 1c. Short year filers only: Divide the number of days in Line 1b by 365 (366 if a leap year). .00 Section 2 – Determination of How to Compute the Credit 2. Were research and development expenses paid or incurred for the 3 taxable years immediately preceding the taxable year for which the credit is being claimed? If “Yes,” complete Sections 3 and 4 below. If no, stop here and enter the amount(s) on Line 1a above on Form RDC Section 2, Line 1.   Yes    No Section 3 – Average Qualified Research and Development Expenses Calculation The Average Qualified Research and Development Expenses for the 3 taxable years ending before the CY 2019. 3a. Expenses for the 3rd preceding taxable year. CY filers: enter expenses for Taxable Year 2016. FY filers: enter expenses for Taxable Year 2015. .00 3b. Expenses for the 2nd preceding taxable year. CY filers: enter expenses for Taxable Year 2017. FY filers: enter expenses for Taxable Year 2016. .00 3c. Expenses for the preceding taxable year. CY filers: enter expenses for Taxable Year 2018. FY filers: enter expenses for Taxable Year 2017. .00 3d. Total expenses from preceding 3 taxable years. Add Lines 3a-3c. .00 3e. Average qualified research and development expenses for the preceding 3 taxable years. Divide amount on Line 3d by 3. If the credit year is a short taxable year, multiply the average qualified research and development expenses for the preceding 3 taxable years by the amount determined in Line 1c. .00 Column A. All Qualified Research and Development Amounts Column B. College and University Related Research and Development Amounts Section 4 – Adjusted Expenses Calculation For filers with Virginia qualified research and development expenses for the preceding 3 taxable years 4a. Enter the current year expenses. Column A must include the amount reported in Column B, if any. .00 4b. If expenses were incurred in connection with a Virginia college or university, divide the amount on Line 4a, Column B by the amount on Line 4a, Column A. .00 % 4c. Column A – Enter the amount from Line 3e. Column B – If expenses were incurred in connection with a Virginia college or university, multiply the amount on Line 4c, Column A by the percentage on Line 4b, Column B. .00 .00 4d. Multiply the amount(s) on Line 4c by 50% (0.5). .00 .00 4e. Subtract Line 4d from Line 4a. Enter here and on Form RDC, Section 2, Line 1 in the applicable column(s). .00 .00 Va. Dept. of Taxation  1600043  Rev. 08/19 Page 5 Instructions for Form RDC Application for Research and Development Expenses Tax Credit General Information The Research and Development Expenses Tax Credit may be claimed against individual and corporate income taxes for qualified research and development expenses for taxable years beginning on or after January 1, 2011, but before January 1, 2022. If the taxpayer elects the primary method of computing the credit, the tax credit amount is equal to (i) 15% of the first $300,000 in Virginia qualified research and development expenses, or (ii) 20% of the first $300,000 of Virginia qualified research and development expenses if the research was conducted in conjunction with a Virginia public or private college or university, to the extent the expenses exceed the base amount. The credit amount cannot exceed $45,000 or $60,000 if the Virginia qualified research was conducted in conjunction with a Virginia public or private university. At the election of the taxpayer, an alternative simplified calculation may be used to determine the Research and Development Expenses Tax Credit. The alternative simplified calculation of the Research and Development Expenses Tax Credit is equal to: 10% of the difference of (i) the Virginia qualified research and development expenses paid or incurred by the taxpayer during the taxable year and (ii) 50% of the average Virginia qualified research and development expenses paid or incurred by the taxpayer for the three taxable years immediately preceding the taxable year for which the credit is being determined. If the taxpayer did not pay or incur Virginia qualified research and development expenses in any one of the three taxable years immediately preceding the taxable year for which the credit is being determined, the tax credit is equal to 5% of the Virginia qualified research and development expenses paid or incurred by the taxpayer during the relevant taxable year. The aggregate amount of credits allowed to each taxpayer cannot exceed $45,000 or $60,000 if the Virginia qualified research was conducted in conjunction with a Virginia public or private university. There is a $7 million cap on the total amount of credits allowed in any fiscal year. If the total amount of tax credits applied for exceed the $7 million limit, credits will be apportioned on a pro rata basis. If the total amount of approved tax credits is less than the $7 million credit cap, the Department will allocate the remaining amount, on a pro rata basis, to taxpayers already approved for the credit that were subject to the $45,000 and $60,000 credit limitations. Supplemental credits will be in the following amounts: if a taxpayer elected the primary computation, an amount equal to 15% of the second $300,000 in qualified research expenses (or 20% of such expenses if the research is conducted in conjunction with a Virginia public or private college or university); or if the taxpayer elected the alternative simplified method of computing the credit, in an amount equal to the excess of the limitation. The maximum supplemental credit amount is $45,000, or $60,000 if the research is conducted in conjunction with a Virginia public or private university. Any taxpayer who is allowed a research and development expenses tax credit is not allowed to use the same expenses as the basis for claiming any other Virginia tax credit. No taxpayer may claim both this credit and the Major Research and Development Expenses Tax Credit. For additional information regarding the credit, see the Research and Development Expenses Tax Credit Guidelines, which are available on the Department’s website at www.tax.virginia.gov. Determining the Virginia Base Amount for the Primary Research and Development Expenses Tax Credit In order to determine the Virginia Base Amount for the primary credit computation, follow these steps: Determine Fixed Base Percentage: Step 1 Determine the average amount of Virginia qualified research and development expenses for the 3 taxable years preceding the year in which the tax credit is being claimed. If the taxpayer has been in business for less than 3 years, but at least 1, use the number of years in business instead of 3. Step 2 Determine the average of the total gross receipts for the 3 taxable years preceding the taxable year that the tax credit is being claimed, or the number of years used in Step 1a, if less. Step 3 Calculate the percentage of Virginia qualified research and development expenses by dividing the average amount determined in Step 1 by the average amount determined in Step 2. This is the “Fixed Base Percentage.” Do not make any adjustments to account for a short taxable year when computing the fixed-base percentage. Determine the Virginia Base Amount: Step 4 Determine average of the total gross receipts for the 4 taxable years preceding the taxable year that the tax credit is being claimed, or the number of years used for Step 2, if less. For purposes of determining the Virginia base amount, if any of the taxable years preceding the credit year that must be accounted for when computing the credit is a short taxable year, the gross receipts for such year(s) are deemed to be equal to the gross receipts actually derived in that year, multiplied by 12, and divided by the number of months in that year. Step 5 Multiply the fixed base percentage in Step 3 by the average gross receipts in Step 4. Step 6 Determine the greater of the amount in Step 5 or 50% of Virginia qualified research expenses for the credit year. This is the “Virginia Base Amount.” Refer to Form RDC, Schedule B, Research and Development Expenses Tax Credit Worksheet for Computing Virginia Base Amount (Primary Method), for detailed instructions on calculating the base amount. Computing the Average Amount of Virginia Qualified Research and Development Expenses for Determining the Credit Using the Alternative Simplified Method If electing to compute the Research and Development Expenses Tax Credit using the Alternative Simplified Method, the taxpayer must complete Form RDC, Schedule C to determine the average amount of Virginia qualified research and development expenses on which the credit amount will be calculated. Taxpayers who calculate the credit based on less than 3 years of qualified research and development expenses must complete Sections 1 and 2 on Form  RDC, Schedule C. Taxpayers who calculate the credit based on qualified research and development expenses for the 3 taxable years preceding the credit year must complete all sections of Form RDC, Schedule C. Page 6 When determining the average amount of Virginia qualified research and development expenses for the 3 years preceding the credit year, if 1 or more of the 3 taxable years preceding the credit year is a short taxable year, then the Virginia qualified research and development expenses for that year must be modified by multiplying that amount by 365 (366 in a leap year) and dividing the result by the number of days in the short taxable year. Definitions Virginia gross receipts – whole, entire, total receipts, without deduction. Virginia qualified research – qualified research, as defined in IRC § 41(d), as amended, that is conducted in Virginia. In general, this is research that is undertaken for the purpose of discovering information that is technological in nature and the application of which is intended to be useful in the development of a new or improved business component of the taxpayer. Virginia qualified research and development expenses – qualified research expenses, as defined in IRC § 41(b), as amended, incurred for Virginia qualified research. In general, this is the sum of the in-house research expenses and the contract research expenses. Stem Cell Research Research and development expenses that are paid or incurred for research conducted in Virginia on human cells or tissue derived from induced abortions or from stem cells obtained from embryos do not qualify for the credit. However, if a taxpayer engaged in research in Virginia on human cells or tissue derived from induced abortions or from stem cells obtained from human embryos, it may receive a nonrefundable credit for other Virginia qualified research and development expenses. If the amount of nonrefundable credit that a taxpayer is allowed to claim exceeds the taxpayer’s tax liability for the taxable year, then the excess amount of credit will not be refunded to the taxpayer and cannot be carried over to future taxable years. Research and development expenses that are paid or incurred for research conducted in Virginia on nonhuman embryonic stem cells may qualify for the credit. When to Submit Application Form RDC and any supporting documentation must be completed and mailed no later than July 1. For any application received without a postmark, the date received by the Department will be used to determine if the application was received by the filing deadline. What to Enclose To allow us to process this application, provide the following: • Outline of the type of research and development being conducted in Virginia. • Form RDC, Schedule A to summarize the information reported on the supplemental expense schedules. You must retain a copy of any supporting documentation of these expenditures. • The following supplemental expense schedules, as applicable: – Schedule RD-CON (contract research expenses) – Schedule RD-SUP (supply expenses) – Schedule RD-WAGE (qualified wages) Upon request, you may be required to provide proof of purchase, such as an invoice, receipt, cancelled check, bank statement, or credit card statement. Where to Submit Application Submit Form RDC and enclosures to the Department of Taxation, ATTN: Tax Credit Unit, P.O. Box 715, Richmond, VA 23218-0715 or fax it to (804) 774-3902 What to Expect from the Department If the Department needs additional information the agency will contact you by September 1 and you will have until September 15 to respond. If you have not received acknowledgement of your application by September 15, call (804) 786-2992. The Department will issue the credit by September 30. If you have not received your credit certification by October 15, call (804) 786-2992. What Does the Taxpayer Need to Do Upon receiving notification of the allowable credit amount, taxpayers may claim the allowable credit amount on the applicable Virginia income tax return. Taxpayers who do not receive notification of allowable credit amounts before their Virginia income tax return due date may file during the extension period or file their regular return without the credit and then file an amended tax return after receipt of notification of the allowable credit amount to claim the tax credit. As an enclosure with their return, a corporation must file Schedule 500CR; an individual must file Schedule CR; and a pass-through entity must file Schedule 502ADJ. IMPORTANT Online Worksheet: Spreadsheet template is available for download on our website, www.tax.virginia.gov. Use these spreadsheets to compute the Virginia Base Amount when using the primary calculation method to compute the Research and Development Expenses Tax Credit. All business taxpayers should be registered with the Department before completing Form RDC. If you are not registered, complete Form R-1. If the tax return upon which this credit will be claimed is due on or before September 30, you may need to either submit an extension payment for any tax due or file an amended return once you have received the credit certification. Pass-Through Entities A partnership, limited liability company, or electing small business corporation (S corporation) may elect to receive and claim the credit at the entity level. If this election is not made, credits must be allocated to the individual partners, members, or shareholders in proportion to their ownership interests in such entities or in accordance with a written agreement entered into by such individual partners, members, or shareholders. In order to allocate the credit to the partners, shareholders, or members, each pass-through entity must file Form PTE with the Department within 30 days after the credit is granted. This information should be sent to: Department of Taxation, ATTN: Tax Credit Unit, P.O. Box 715, Richmond, VA 23218-0715 or you may fax it to (804) 774-3902. Please do not do both. • Form RDC, Schedule B and details regarding the calculation of your Virginia base amount, if electing the primary credit computation. All pass-through entities distributing this credit to their owner(s), shareholders, partners or members must give each a Schedule VK‑1, Owner’s Share of Income and Virginia Modifications and Credits. • Form RDC, Schedule C if electing the alternative simplified computation. Enclose a copy of the research agreement if reporting expenses in connection with a Virginia public or private college or university. Where To Get Help Write to the Department of Taxation, ATTN: Tax Credit Unit, P.O. Box 715, Richmond,VA 23218-0715 or call (804) 786‑2992. Page 7 Form RDC Checklist Research and Development Expenses Tax Credit Enclosure Checklist Tax Year _________ Must be included with Form RDC Name as it Appears on Form RDC  FEIN  SSN All expenses must be for the calendar year of the application, regardless of fiscal year incurred. Provide: 1) 2) A description of your research project(s). A summary of how this research qualifies as defined in IRC § 41(d). Check the applicable box on Form RDC to indicate whether you conduct research and development in Virginia on human cells or tissue derived from induced abortions or from stem cells obtained from human embryos. The Form RDC Schedule A. Include the applicable expense schedule(s) that have been used to complete the Schedule A. The Schedule RD-CON, if claiming the credit on the basis of qualified contractor research expenses. Note: For purposes of computing your qualified research expenses, contract research expenses are included as follows: 1) 65% of any amount paid to a nonemployee for qualified research; 2) 75% of any amount paid to a qualified research consortium for qualified research; and 3) 100% of any amount paid to an eligible small business, an institution of higher education as defined in IRC § 3304(f), or an organization that is a federal laboratory as defined in IRC § 3304(f). Any individual who receives a Form 1099 is considered an independent contractor and his/her payroll expenses must be reported at 65%. The Schedule RD-SUP, if claiming the credit on the basis of qualified supply expenses used in the conduct of qualified research. The Schedule RD-WAGE, if claiming the credit on the basis of qualified wages as defined by IRC § 3401. Include employee full names, complete SSNs, and salary allocated to Virginia qualified research and development activities. To ensure that all of your qualifying employees can be verified, you must provide their complete SSN. Wages reported without complete SSNs may not qualify for the credit. If reporting more than 25 employees, you may submit an electronic copy of the wage information using the same format as Schedule RD-WAGE. For instructions on how to send the wage information electronically, contact the Department’s Tax Credit Unit at (804) 786-2992. The Form RDC Schedule B Worksheet and details regarding the calculation of your Virginia base amount, if electing the primary credit computation. To obtain the worksheet in a spreadsheet format, visit www.tax.virginia.gov. The Form RDC Schedule C Worksheet, if electing the alternative simplified computation of the Research and Development Expenses Tax Credit. A copy of the research agreement if any of the Virginia qualified research was conducted in conjunction with a Virginia public or private college or university. Proof of payment, such as a copy of a cancelled check or statement of electronic transfer, for university-related research when payments are made directly to the university. The Department will be unable to process the application until all of the required enclosures have been submitted. Page 8
Extracted from PDF file 2019-virginia-form-rdc.pdf, last modified August 2019

More about the Virginia Form RDC Corporate Income Tax Tax Credit TY 2019

We last updated the Application for Research and Development Expenses Tax Credit in March 2020, so this is the latest version of Form RDC, fully updated for tax year 2019. You can download or print current or past-year PDFs of Form RDC directly from TaxFormFinder. You can print other Virginia tax forms here.

Other Virginia Corporate Income Tax Forms:

TaxFormFinder has an additional 135 Virginia income tax forms that you may need, plus all federal income tax forms.

Form Code Form Name
Form 502 Pass-Through Entity Return of Income
Form 770 770 - VA Fiduciary Income Tax Return
Form 500 Corporate Income Tax Return
Form 502W 502W - Pass-Through Entity Withholding Tax Payment Voucher and Instructions
Form 502 VK-1 Owner's Share of Income and Virginia Modifications and Credits

Download all VA tax forms View all 136 Virginia Income Tax Forms


Form Sources:

Virginia usually releases forms for the current tax year between January and April. We last updated Virginia Form RDC from the Department of Taxation in March 2020.

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Form RDC is a Virginia Corporate Income Tax form. States often have dozens of even hundreds of various tax credits, which, unlike deductions, provide a dollar-for-dollar reduction of tax liability. Some common tax credits apply to many taxpayers, while others only apply to extremely specific situations. In most cases, you will have to provide evidence to show that you are eligible for the tax credit, and calculate the amount of the credit to which you are entitled.

About the Corporate Income Tax

The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.

Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).

Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.

Historical Past-Year Versions of Virginia Form RDC

We have a total of nine past-year versions of Form RDC in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2019 Form RDC

2019 Form RDC - Application for Research and Development Expenses Tax Credit

2018 Form RDC

2018 Form RDC - Application for Research and Development Expenses Tax Credit

2017 Form RDC

2017 Form RDC - Application for Research and Development Expenses Tax Credit

2016 Form RDC

Form RDC - Application for Research and Development Expenses Tax Credit

Form RDC - Application for Research and Development Expenses Tax Credit 2015 Form RDC

Form RDC - Application for Research and Development


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