Tax Blog

Under section 41 of the Internal Revenue Code, certain taxpayers are eligible to claim a credit for expenses incurred for the performance of qualified research and development activities. Although the research credit is not limited to specific industries or types of taxpayers, taxpayers in manufacturing, information technology, and professional, scientific, and technical services are often the main beneficiaries of this credit.

US-based taxpayers who meet the following four-part test may be eligible for the credit. First, the business component test requires that the ...