Eligible R&D Expenditures

• salaries and wages for employees engaged in R&D
• materials used in R&D
• lease costs of machinery and equipment that is used for R&D
• subcontractor costs who carry out R&D on your behalf

Capital Expenditures

• machinery and equipment that is used almost exclusively for R&D
• machinery and equipment used primarily (more than 50%) for R&D is eligible for partial tax credit

Overhead

• “notional” amount of R&D overhead, calculated as 65% of R&D salaries