By SEMA Washington, D.C., Staff

The Internal Revenue Service (IRS) has issued a proposed rule that would allow companies to claim the research and development (R&D) tax credit for the cost of computer software that is developed primarily for a company’s internal use. The proposal would not apply to software used for administrative functions. It would apply to software that is developed for use in a production process in support of a new product or manufacturing process. 

For additional information, contact Stuart Gosswein at stuartg@sema.org.