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**Permitted Purpose**: Innovate your business components.
**Technological Nature**: Root your research in hard
sciences.
**Eliminate Uncertainty**: Conquer technological unknowns.
**Experimentation**: Dive into systematic trial-and-error.
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**Qualifying Expenses**:
- **Wages**: Pay those driving research.
- **Supplies**: Use materials in your research.
- **Contract Research**: Deduct 65% of third-party research
costs.
- **Cloud Costs**: Include cloud hosting for development.
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**Startup Benefits**:
- **Payroll Offset**: For small businesses, offset payroll
taxes up to $500,000.
- **Carryforward**: Use unused credits for up to 20 years.
**Claiming the Credit**:
- File **IRS Form 6765** with your tax return.
- Provide detailed documentation.
- Amend past returns with lookback studies.
- Choose between credit calculation methods.
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