Research Tax Credit

(a) Trade or business requirement—(1) In general. An in-house research expense of the taxpayer or a contract research expense of the taxpayer is a qualified research expense only if the expense is paid or incurred by the taxpayer in carrying on a trade or business of the taxpayer. The phrase “in carrying on a trade [...]

(a) In general. (1) The term research or experimental expenditures, as used in section 174, means expenditures incurred in connection with the taxpayer’s trade or business which represent research and development costs in the experimental or laboratory sense. The term generally includes all such costs incident to the development or improvement of a product. The [...]

(a) General rule     For purposes of section 38, the research credit determined under this section for the taxable year shall be an amount equal to the sum of–             (1) 20 percent of the excess (if any) of                     (A) the qualified research expenses for the taxable year, over                         (B) [...]

(a) Treatment as expenses                   (1) In general.  A taxpayer may treat research or experimental expenditures which are paid or incurred by him during the taxable year in connection with his trade or business as expenses which are not chargeable to capital account. The expenditures so treated shall be allowed as a deduction.   [...]