R&D Qualified Activities

Every R&D activity must satisfy four criteria under §41(d): permitted purpose, technological in nature, elimination of technical uncertainty, and process of experimentation.

What counts as a business component, how to identify them, and what the IRS expects in documentation.

Activities that cannot qualify: post-commercial production, adaptation, duplication, surveys, routine testing, social science research, and funded research.

Official IRS guidance on how examiners evaluate whether business activities qualify as qualified research.