Qualified Research Expenditure
IRC Section 41 – The development of a new or
SUPPLIES Expendable materials consumed
improved business component, i.e., new or improved designs.
WAGES Typically, largest component. Calculate the % of employees’ qualifying time/hours Multiply this % by annual wages per W-2
CONTRACTOR Same pro-rata rules as above. Only 65% of qualifying costs eligible.
R&D TAX CREDIT. // 156
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