Software Development companies may be eligible for R&D tax credits for performing qualified research activities. For example, the following activities may be eligible for R&D tax credits:
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Performing technical research on requirements, domain, software elements, or scope analysis for new functional software enhancement(s)
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Performing technical research on programming, compiling, or software source code
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Performing technical research and analysis regarding unit, integration, functional, performance and regression testing for new and/or improved software enhancements
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Developing and/or improving programming software source code
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Developing code for new and/or improved software architecture or algorithms
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Developing new and/or improved feature enhancements
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Developing new and/or improved software to be embedded apart of hardware product(s)
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Developing new and/or improved system software, operating systems, and compilers
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Developing new and/or improved internal processes
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Developing new and/or improved rule engines to manage and automate content and models
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Developing new and/or improved functional enhancements or capabilities for existing applications
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Developing new and/or improved interactive software to support delivery of specific applications (streaming content, music / video games, etc.)
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Developing new and/or improved specialized technologies (e.g. artificial intelligence, deep / machine learning, voice recognition applications)
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Designing new and/or improve structural software architecture
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Designing new and/or improved functional relationships between software modules
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Designing new and/or improved database management techniques
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Integrating new and/or improved electronic interfaces or functional relationships between different software modules
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Evaluating new and/or improved functional specifications
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Evaluating technical research, developments, designing, or testing through attending technical meetings
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Evaluating alternative programming languages in direct support of new and/or improved software components
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Testing source code (model simulations, prototypes, alpha / beta testing, etc.)