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


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

> 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**

