The calculation of the R&D tax credit can be complex. Generally, it involves two main components: 1. A percentage of qualified research expenses (QREs) over a base amount, 2. The credit usually ranges from 6% to 20% of QREs, depending on the jurisdiction and specific tax laws.
Expenses that can be included are wages for employees involved in R&D, supplies used in the research process, and costs related to contract research.