R&D Tax Credit: Questions to Investigate

Quick answer

Some U.S. development activities may be relevant to the federal research credit, but industry membership or development spending alone does not establish qualification.

Who should investigate?

Businesses developing or improving a product, process or software and resolving technological uncertainty through experimentation can ask about a project-level review.

What needs review?

The business component, permitted purpose, technological basis, uncertainty and experimentation.
Excluded activities, domestic location, funded research and contractual rights and financial risk.
Qualified wages, supplies and applicable contract research expenses.
Credit method, elections, documentation, filing requirements and usability.

Records to gather

Project descriptions, technical alternatives, test results, timesheets or supportable allocations, payroll, invoices and contracts. A specialist must determine which records support the claim.

Affiliate disclosure: we may earn compensation from qualifying referrals. Confirm scope, pricing and eligibility with the provider.

Explore an ETS R&D assessment

Primary source

IRS Instructions for Form 6765. Confirm how it applies to your tax year and circumstances before acting.