Reference
R&D tax & incentive glossary
Plain-language definitions of the terms practitioners and finance leaders use across R&D tax and innovation incentive programs. Informational only, not tax or legal advice.
- Alternative Simplified Credit (ASC)A U.S. method to compute the §41 credit using recent-year expenses.
- Audit defenseSupport provided if a tax authority reviews an R&D claim.
- AusIndustry registrationThe advance registration step required before claiming Australia's R&D Tax Incentive.
- Business componentThe product, process, software, technique, formula, or invention to which U.S. qualified research relates.
- Capital recoveryIn platform contexts, recovering value from R&D spend via credits, offsets, or related incentives.
- CCPCCanadian-controlled private corporation, a status that affects SR&ED credit refundability and rates.
- CIR (crédit d'impôt recherche)France's research tax credit for eligible R&D expenditure.
- Contemporaneous documentationRecords created during the R&D work that substantiate a claim.
- Contemporaneous evidenceThe underlying artifacts that prove R&D activity and costs as they occurred.
- Form 6765The IRS form used to compute and claim the U.S. Credit for Increasing Research Activities.
- Form T661The CRA form used to claim Scientific Research and Experimental Development incentives.
- ForschungszulageGermany's research allowance for eligible R&D personnel and contract costs.
- Four-part testThe U.S. eligibility test for qualified research under Section 41.
- Frascati ManualOECD guidance defining research and experimental development for statistical and policy use.
- HMRC Additional Information FormMandatory supporting detail HMRC requires with many UK R&D claims.
- Index VerifiedThe Credit Index badge for firms or platforms that meet published verification criteria.
- Investment tax credit (ITC)A credit calculated as a percentage of eligible investment or R&D expenditure.
- Nexus (expense nexus)The required link between claimed costs and qualifying R&D activities.
- Patent boxA reduced tax rate on income from qualifying intellectual property.
- Payroll tax offsetUsing a research credit against payroll taxes rather than only against income tax.
- Process of experimentationA systematic evaluation of alternatives to resolve technological uncertainty.
- Qualified research expenses (QREs)The specific costs that count toward a U.S. R&D credit calculation.
- R&D credit platformSoftware that helps document, substantiate, estimate, or operationalize R&D incentive claims.
- R&D tax creditA government incentive that reduces tax owed based on qualifying research and development spending.
- R&D Tax Incentive (RDTI)Australia's core program supporting company R&D.
- RDECThe UK's Research and Development Expenditure Credit.
- Refundable creditA credit that can produce a cash payment even when no tax is owed.
- Section 174 capitalizationU.S. rules requiring research costs to be amortized rather than immediately expensed.
- Section 41 creditThe U.S. federal Credit for Increasing Research Activities under Internal Revenue Code §41.
- SkatteFUNNNorway's R&D tax deduction scheme for approved projects.
- SR&EDCanada's Scientific Research and Experimental Development program.
- SubstantiationThe proof package that supports eligibility, methodology, and claimed amounts.
- Technological uncertaintyDoubt about capability, method, or design that R&D work aims to resolve.
- UK merged R&D scheme / ERISThe UK's post-merger R&D relief framework, including Enhanced R&D Intensive Support for qualifying SMEs.
- WBSOThe Netherlands' wage-based R&D tax credit administered via RVO.
Definitions are general and educational. Program rules change and vary by jurisdiction. Confirm specifics with official guidance and a qualified advisor. Browse the directory or standards library.