Instructions: Answer the following questions to see if your business qualifies for the Research & Development (R&D) Tax Credit. Keep track of your “Yes” answers—more “Yes” responses increase your likelihood of eligibility!

Section 1: General Business Activities

1️⃣ Does your business develop new products, software, or processes?

• ⬜ Yes
• ⬜ No

2️⃣ Have you made significant improvements to an existing product, software, or process?

• ⬜ Yes
• ⬜ No

3️⃣ Do you employ engineers, scientists, software developers, or technical experts?

• ⬜ Yes
• ⬜ No

4️⃣ Have you faced technological uncertainties when developing or improving a product or process?

• ⬜ Yes
• ⬜ No

5️⃣ Does your business conduct testing, prototyping, modeling, or simulations to develop new solutions?

• ⬜ Yes
• ⬜ No

Section 2: The Four-Part Test for R&D Credit Eligibility

6️⃣ Does your research aim to create or improve a product, process, software, or formula? (Permitted Purpose Test)

• ⬜ Yes
• ⬜ No

7️⃣ Did your project involve overcoming technical challenges or unknowns? (Technological Uncertainty Test)

• ⬜ Yes
• ⬜ No

8️⃣ Did you use a systematic trial-and-error process, including prototypes or iterations? (Process of Experimentation Test)

• ⬜ Yes
• ⬜ No

9️⃣ Is your research based on principles of science, engineering, or computer science? (Technological in Nature Test)

• ⬜ Yes
• ⬜ No

Section 3: Financial & Tax Considerations

🔟 Did you incur costs related to wages for employees working on R&D projects?

• ⬜ Yes
• ⬜ No

1️⃣1️⃣ Did you purchase materials, equipment, or supplies for R&D activities?

• ⬜ Yes
• ⬜ No

1️⃣2️⃣ Did you pay third-party contractors for research, testing, or development work?

• ⬜ Yes
• ⬜ No

1️⃣3️⃣ Does your business file U.S. federal taxes (Form 1120, 1065, or Schedule C)?

• ⬜ Yes
• ⬜ No

Section 4: Common Exclusions

1️⃣4️⃣ Is your research focused solely on market studies, consumer surveys, or business operations (non-technical)?

• ⬜ Yes
• ⬜ No

1️⃣5️⃣ Is the work being performed outside of the U.S.?

• ⬜ Yes
• ⬜ No

1️⃣6️⃣ Is the research conducted after the product or process is already in full commercial production?

• ⬜ Yes
• ⬜ No

🚨 If you answered “Yes” to questions 14-16, your R&D activities may not qualify!

Quiz Results: Are You Eligible?

🔹 10+ Yes Answers: ✅ Strongly Eligible – Your business is highly likely to qualify for the R&D Tax Credit! Start gathering your documentation and consult a tax professional.

🔹 6-9 Yes Answers: ⚠ Possibly Eligible – Your business may qualify, but eligibility depends on specific details. Review your activities carefully and consult an R&D tax specialist.

🔹 0-5 Yes Answers: ❌ Not Likely Eligible – Your business may not meet the IRS requirements for the R&D Credit, but you could explore other tax incentives.

Next Steps: Claim Your R&D Credit!

📌 Think you qualify? Here’s what to do next:
✅ Keep records of all R&D expenses, employee timesheets, and project documentation.
✅ File IRS Form 6765 with your tax return.
✅ Consult an R&D tax specialist to maximize your credit and ensure compliance.

💡 Still unsure? Get a FREE R&D Credit Consultation from an expert! Click here to schedule a call.

💬 Comment below if you have questions, or share your quiz results! 🚀