Internal Use Software (IUS) can qualify for the federal R&D tax credit, but it faces a much higher qualification standard than most other research activities. In addition to satisfying the traditional Section 41 four-part test, IUS must also pass the IRS’s High Threshold of Innovation test, which evaluates innovation, economic risk, and commercial availability. Learn how these rules apply to software development projects and where many claims encounter problems.

Structural engineering firms often perform highly technical work that may qualify for the federal R&D tax credit, even if they are not developing new products or technologies. From seismic design and structural optimization to adaptive reuse and complex load analysis, many engineering activities involve technical uncertainty and iterative problem-solving that align with IRC §41 qualification standards.

When it comes to running a business, every dollar saved counts. Have you ever wondered if your company could be missing out on valuable tax savings in the form of tax credits? The good news is that many businesses qualify for significant tax credits through research and development activities. In this post, we’ll focus on the first of our two-lens approach: Qualifying Research Activities (QRA). Once you understand this lens, you’ll be ready for lens two (which is about expenditures) in our...