Criteria for Qualifying
for the R&D Tax Credit

Criteria for Qualifying
for the R&D Tax Credit

The Four-Part Test


Do Activities Eliminate Uncertainty?

Activities must focus on the discovery of information that eliminates uncertainty regarding the improvement or development of a product or process.


Do Activities Rely on Hard Sciences?

Activities must rely on the principles of engineering, computer science, or the physical or biological sciences.


Are Activities Designated for a Permitted Purpose?

Activities must relate to the development of a new or improved product or process, also known as a business component. Business components must be designated for a permitted purpose, such as to increase reliability, functionality, performance, or quality.


Do Activities Involve Experimentation?

Activities must incorporate the process of experimentation in which alternatives are evaluated through modeling, simulation, testing, and trial-and-error methodology.

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