One of the common misconceptions surrounding the R&D tax credit is that participants must wear lab coats and use test tubes in order to qualify. This could not be further from the truth – the definition of R&D for tax credit purposes is actually fairly broad. Companies are able to qualify activities from the development of concepts to the point where a product, process, formula, or other business component is ready to be commercially released. Amounts paid for salaries, supplies, contract research, and computer leasing could all qualify for the R&D tax credit. Moreover, a majority of US states have their own R&D credit programs. Read more here.