Resources · Four-part test checklist · Updated July 2026

The four-part test checklist

Every project you claim for the R&D credit has to pass the same four tests from Section 41. This checklist turns them into plain yes or no questions you can answer per project in a few minutes. Read it here or print the one-page PDF.

The short answer

A project qualifies when all four are true: it aimed at a new or improved product, process, or piece of software; the work relied on a hard science like computer science; the outcome was uncertain at the start; and you ran a real process of evaluating alternatives. All yes means it likely qualifies. Any no means talk to your CPA first.

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One printable page. Run it in project reviews or quarterly planning, one copy per project.

Download the checklist (PDF)

The checklist

Answer for one project at a time. Every answer must be yes for the project to qualify.

Test 1: Permitted purpose

The work aims at a new or improved business component.

  • Were you creating a new product, process, or piece of software, or improving one?
  • Was the goal better function, performance, reliability, or quality?
  • Can you name the specific product, feature, or system the work relates to?

Test 2: Technological in nature

The work relies on hard science.

  • Did the work rely on computer science, engineering, or another hard science?
  • Would someone need technical knowledge in that field to do the work?

Test 3: Elimination of uncertainty

You did not know the outcome at the start.

  • At the start, were you unsure you could build it, how to build it, or what the right design was?
  • Was the answer unavailable in public information, documentation, or off-the-shelf tools?

Test 4: Process of experimentation

You evaluated alternatives in a systematic way.

  • Did you consider more than one way to solve the problem?
  • Did you test, model, simulate, or systematically try and discard alternatives?
  • Can you point to records of that process, like pull requests, design docs, or experiment logs?

How to read your answers

All boxes checked: the project likely qualifies. Document it now, while the work is fresh, using the documentation template. Any box unchecked: talk the project through with your CPA before you claim it. Partial credit is common, where a project's experimental phase qualifies and its routine polish does not.

For worked examples of what passes and fails in real codebases, read what software work qualifies as R&D. Then put a number on it with the calculator.

Common questions

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