The Research and Experimentation Tax Credit (R&D Tax Credit) is a general business tax credit for a company’s eligible wages, supplies, contract research and basic research payments during one of three possible base periods: Traditional Credit Calculation, Start-Up Credit Calculation and Alternative Simplified Credit. 

The Tax Court has held that for purposes of computing the research credit under Code Sec. 41, a taxpayer must include nonsales income such as dividends, interest, rent, and other income in its average annual gross receipts.