Defined term
Nexus (expense nexus)
Also: expense nexus · cost nexus · activity nexus
The required link between claimed costs and qualifying R&D activities.
Expense nexus means wages, supplies, and contract payments included in a claim must be sufficiently connected to qualifying research activities or business components. Broad departmental allocations without activity-level support are a common examination issue. Time tracking, project coding, and contract scoping are typical ways to establish nexus. The concept appears under different labels across jurisdictions but the practical demand is the same: show the spend belongs to eligible work.
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Educational definition only. Not tax or legal advice. Confirm current program rules with official guidance and a qualified adviser.