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


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

> 65 percent of any amount paid or incurred by the taxpayer to any person (other than an employee of the taxpayer) for qualified research

#### 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**

