To ensure compliance with the IRS, it is important to attribute Qualified Research Expenses (QREs) to the specific Business Components that were developed during the year. On this page, we will classify our expenses by Business Component and assign a percentage to each one for documentation purposes. This helps maintain accurate records and demonstrates the allocation of expenses in accordance with IRS guidelines.

The Target qualified percentage refers to the total percentage of qualified expenses attributed to each line item during the study. These percentages are derived from the credit study and reflect the portion of expenses that qualify for the credit.

The unallocated amount for a Business Component is represented by the Remaining qualified percentage. Once the Remaining percentage reaches 0%, it indicates that all expenses for that line have been successfully allocated to the respective Business Components, marking the completion of that line.