Qualified R&D Expenses
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      1. TaxTaker Knowledge Base
      2. R&D Tax Credit
      3. Qualified R&D Expenses

      What Activities do not Qualify for the R&D Credit?

      Activities that cannot qualify for the R&D credit

       IRC Sec. 41(d)(4) specifically states that the following activities will not qualify for the R&D credit:


      1. Research after commercial production;
      2. Adaptation of existing business components to a particular customer’s requirement or need without significant modification;
      3. Duplication of an existing business component; 
      4. Surveys or studies related to efficiency, management functions or techniques, market research, routine data collection, or routine quality control testing or inspections;
      5. Research conducted outside the U.S., Puerto Rico, or any possession of the U.S.;
      6. Research related to social sciences, arts, or humanities; and,
      7. Funded research (discussed in further detail below).