Accepted Qualified Research Activities
Product Development:
- Manufacture or design your own product or develop software for resale.
- Includes conceptual development to commercialization of product.
Product Enhancements:
- Incremental enhancement, improvements, or product redesign
- Includes making existing products perform better, stronger, lighter, more efficient, experimenting with new materials, etc.
Process Improvements:
- Manufacture prototypes for clients.
- Design and fabricate tools, molds, and dies.
- Manufacture or engineer production equipment.
- Increase automation.
- Design new manufacturing techniques and methods.
- Develop internal software and technological integrations.
Two Types of Claims are Approved under the Research Tax Credit:
Ninety five percent (95%) of all R&D claims occur under Experimental Development.
The IRS says to qualify for a Research Tax Credit, your company must have a New or Improved Business Component. A business component can be either a product, process, software, formula, technique, or invention. See the full list of qualifying activities:
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