Qualified research expenses
In accounting, qualified research expenses means what the credit is computed on: wages for qualified services — doing, directly supervising or directly supporting qualified research (all of a person's wages once that is 80% or more of them) — plus supplies used in the research, rented off-site computers, and 65% of contract research paid to others.
Also called QREs.
Authority: IRC §41(b) (opens in a new tab). Sources
The lessons that teach this
From the free founder back-office course, taught on one company's books, with exercises to work it yourself.
- R&D creditQualified research expenses: wages, supplies and contractorsWages for qualified services, supplies, rented computers and 65% of contract research, worked line by line for one hypothetical year.12 min
- R&D creditComputing the credit: the ASC and the regular methodThe alternative simplified credit line by line, the 6% rule for a company's first years, and when the regular credit is the better method.10 min
- R&D creditForm 6765, section by sectionForm 6765 section by section, the order to fill it in, and the hypothetical year's entries line by line.8 min
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- R&D spend
- §174A expenditures (broader)
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.