Essentially, any company that is developing or improving upon technologies in the United States.
The IRS does have a four-part test to qualify for the program, as follows:
First, activities be technical in nature, which is short for based in the hard sciences or computer sciences.
Next, activities must be intended to develop a new or improved business component of the taxpayer. These can be products, processes, formulas, inventions, software, and technologies.
Third, there must be some risk of failure for the taxpayer. While you think you might very well get to the outcome, the IRS wants to make sure your endeavor is demonstrating and overcoming uncertainties.
Last but not least, they want to see a demonstration of a process of experimentation, or in other words trial and error. Have you evaluated one or more alternatives to achieve a result, what were the capabilities or potential methods required to achieve the result and the appropriate designs?
In other words can we do it? How can we do it? And what’s it going to look like?