R&D Tax Credit Glossary

A product, process, computer software, technique, formula, or invention that is the subject of qualified research under §41.

Wages, supplies, and contract research that satisfy §41(b). Determined under Section 41 rules, separate from §174A expensing.

14% × (QREs − 50% of avg prior 3-year QREs). The most commonly used credit calculation method under §41(c)(5).

Related entities under IRC §52 that must aggregate gross receipts for the §448(c) small business test and coordinate credit calculation method.

Used in the Regular Credit method. Base amount = fixed-base % × avg prior 4-year gross receipts. Fixed-base % from historical R&D intensity.