### Question
How is the term qualified research defined?


### Answer
The term **qualified research** is defined in *26 U.S.C. § 41* as the following:

> research—


(A) [1](#41_1_target) with respect to which expenditures may be treated as expenses under section 174,


(B) which is undertaken for the purpose of discovering information—


(i) which is technological in nature, and


(ii) the application of which is intended to be useful in the development of a new or improved business component of the taxpayer, and


  

(C) substantially all of the activities of which constitute elements of a process of experimentation for a purpose described in paragraph (3)

#### 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**

