Qualified Research Expenditures

Qualified Research Expenditures (QREs) are the costs a business incurs when conducting research aimed at developing new or improved products, processes, or technologies. These expenses typically include wages for researchers, costs of materials used in experiments, and certain overhead costs directly related to research activities. QREs are important because they often qualify for tax incentives or credits, encouraging companies to invest in innovation. To be considered qualified, the research must generally involve a systematic process to resolve scientific or technological uncertainties.