Proposed Rules on Research & Development Tax Credit for Internal Software

On Friday, January 16, 2015, the Department of Treasury released proposed regulations for the R&D Tax Credit regarding the inclusion of computer software developed primarily for internal use. The proposed regulations define internal use software as “software developed for use in general and administrative functions that support the taxpayers trade or business.”

Software is not considered internal use if it is developed to be:

  • Commercially Sold
  • Leased
  • Licensed
  • Marketed to third parties
  • Enables a taxpayer to interact with third parties
  • Allow third parties to initiate functions
  • Review data on the taxpayer’s system

The proposed regulations will allow otherwise excluded internal use software development to be considered qualified research.

For further information regarding the Research & Development Tax Credit, call 800-236-6519.

Click here for a free benefit analysis of your research and development activities.


Engineered Tax Services

Engineered Tax Services

Recent Posts


The Ins and Outs of the ERTC

The Employee Retention Tax Credit (ERTC) is a tax credit offered by the federal government to assist businesses in retaining their employees during economic hardships. This credit was introduced in 2020 as a response to the COVID-19 pandemic and has been extended until the last quarter of 2021.

Read More »

Cost Segregation: A Tax Strategy for Office Building Owners

As an office building owner, navigating the complex world of taxes can be a daunting task. With commercial properties subject to a variety of tax rules and regulations, it’s easy to get lost in the details and lose sight of your bottom line. That’s where cost segregation comes in.

Read More »
International Women's Day

Women Leading the Way: Lessons in Resilience and Success

Introduction As we enter Women’s History Month and celebrate International Women’s Day on March 8th, Engineered Advisory is proud to recognize the many phenomenal women who are part of our community. As a predominantly women-led organization, we value diversity in leadership. From executives to team members, we firmly believe that a diverse leadership team fosters

Read More »

Contact Us