The IRS' Four-Part Test outlines a simple guide to determine if R&D activities are qualified for the credit:
1. Permitted Purpose: Are you developing or improving a product, process, formula, or software?
2. Technological in Nature: Is your work within physical or biological sciences, engineering, or computer sciences?
3. Elimination of Uncertainty: Are you asking questions such as "Can we develop it?" or "How do we develop it?"
4. Process of Experimentation: Are you systematically evaluating one or more alternatives?