R&D Tax Credit - Internal Revenue Code

Smaller manufacturers typically do not use project-based accounting, because it is not necessary and may require additional staff. They must rely upon sections 41 and 174 of the Internal Revenue Code for guidance and documentation requirements, and meet the following criteria when seeking an R&D tax credit:1. The research must be technical in nature, and cannot focus on social sciences, arts or humanities.2. The research must be intended to be useful in the development of a new or improved business component.3. The research must relate to a new or improved function, performance, reliability or quality.Related Feature - R&D Tax Credits Face Higher ScrutinyTo read the Feature article relating to this story, go to http://www.automationworld.com/columns-4501