What is Qualified research expenditure?
Qualified research expenditures are costs incurred during business activities that satisfy the four-part test under Internal Revenue Code Section 41, including wages paid to employees performing or directly supporting research, supplies consumed in research processes, and amounts paid to third parties for contract research services. These expenditures must relate to activities undertaken for discovering technological information, intended to eliminate uncertainty about developing or improving business components through systematic experimentation. To maximize these benefits, consider AI-driven R&D tax credits that help identify qualifying activities across your organization.
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