There are many different activities that qualify when claiming the R&D tax credit.
If you do anything technology-based, improve it, and sell it to customers, you probably qualify. IRS tax regulations outline a straightforward 4-part test to determine qualification:
1. PERMITTED PURPOSE - Are you developing or improving a product, process, formula or software?
2. TECHNOLOGICAL IN NATURE - Is your work within physical or biological sciences,engineering, or computer sciences.
3. ELIMINATION OF UNCERTAINTY - Are you asking questions like, "Can we develop it?" or "How do we develop it?"
4. PROCESS OF EXPERIMENTATION - Are you systematically evaluating one ormore alternatives?