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:

  • Manufacturing
  • Fabrication
  • Engineering
  • New Product & Process Development
  • Developing New Concepts or Technologies
  • Design - Layout, Schematics, AutoCAD
  • Prototyping or Modeling
  • Testing / Quality Assurance: 
ISA 900X, UL, Sigma Six, etc.
  • Integration of new machinery
(CNC, SLA, SLE, etc) into existing process
  • Software Development or Improvement
  • Automating /Streamlining Internal Processes
  • 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.