Taxpayers can fully expense domestic research and experimental expenditures in the year they were paid on the federal return. North Carolina doesn't follow this rule and requires expenditures to be spread out over 5 years.
If you added back any domestic research and experimental expenditures on a prior North Carolina return, you can take a deduction equal to 25% of the amount added back for the next 4 years. Amounts added back would be listed on your prior North Carolina return, Schedule S, Line 15.
