Final regulations issued defining research

✍ Scribed by Shirley Dennis-Escoffier

• Publisher: John Wiley and Sons
• Year: 2004
• Tongue: English
• Weight: 38 KB
• Volume: 15
• Category: Article
• ISSN: 1044-8136
• DOI: 10.1002/jcaf.20045

✦ Synopsis

New final regulations defining qualified research for the purposes of the research tax credit finally appear to have put to rest the controversial "discovery test" and instead focus on the process of experimentation. While settling some issues, the regulations postpone dealing with the controversy surrounding internaluse software.

THE RESEARCH TAX CREDIT

Internal Revenue Code (IRC) Section 41 allows taxpayers a credit against tax for increasing research activities. IRC Section