### Question
How does the law define qualified research expenses?


### Answer
Under *26 U.S.C. § 41*, **qualified research expenses** is defined as:

> the sum of the following amounts which are paid or incurred by the taxpayer during the taxable year in carrying on any trade or business of the taxpayer—


(A) in-house research expenses, and


(B) contract research expenses

#### Citation:
  - *26 U.S.C. § 41*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter A-Determination of Tax Liability > PART IV-CREDITS AGAINST TAX > Subpart D-Business Related Credits**

