What qualifies as R&D credit for software development?

R&D credit for software development applies to activities that involve creating or improving software through technological innovation. To qualify, the work must aim to resolve technical uncertainties and rely on a process of experimentation. Eligible expenses often include employee wages, contractor fees, and necessary supplies directly tied to development. Whether building new software, enhancing existing systems, or integrating advanced technologies, businesses may claim R&D credit for software development if their efforts meet IRS guidelines for qualified research activities.