### Question
How does NORMAL TAXES AND SURTAXES define business component?


### Answer
Under *26 U.S.C. § 41*, **business component** is defined as:

> any product, process, computer software, technique, formula, or invention which is to be—


(i) held for sale, lease, or license, or


(ii) used by the taxpayer in a trade or business of the taxpayer

#### 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**

