A QRE is a "Qualified Research Expenditure" as defined by the IRS in Section 41(b).
Basically a QRE is any eligible expenses for the credit, including wages, supplies and contract research expenditures. For most companies, full-time product development engineers’ wages come to mind first and are easiest to recognize; however, a closer look at definitions and examples may lead to the inclusion of additional wages, supplies or contract research.
Below is a list of some tasks that can be performed within an organization that would qualify for the R&D Tax Credit:
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Manufacturing
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Fabrication
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Engineering
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New Product & Process Development
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Developing New Concepts or Technologies
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Design - Layout, Schematics, AutoCAD
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Prototyping or Modeling
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Testing / Quality Assurance:
ISA 900X, UL, Sigma Six, etc.
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Integration of new machinery
(CNC, SLA, SLE, etc) into existing process
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Software Development or Improvement
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Automating /Streamlining Internal Processes
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Developing Tools, Molds, Dies
- Developing or Applying for Patents
To learn more about the R&D Tax Credit, please reference the support tab for training articles in your portal or Stryde Hub.