Internal-use software
In accounting, internal-use software means software developed primarily for the taxpayer's own general and administrative functions — financial management, human resources, support services. Its development qualifies for the research credit only if it also meets the high-threshold-of-innovation test: innovative, significant economic risk, and not commercially available.
Also called IUS.
Authority: Treas. Reg. §1.41-4(c)(6) (opens in a new tab). Sources
The lesson that teaches this
From the free founder back-office course, taught on one company's books, with exercises to work it yourself.
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- software for sale
- customer-facing software
Components that render the terms it depends on
No component names this concept outright, but it's built from terms that components do name. These render credit.
Also in Research credit
Defined in Lexicon. This page is generated from that document, so the two can't disagree.