The Research & Experimentation Tax Credit, most frequently known as the R&D Tax Credit, is a general business tax credit under Internal Revenue Code section 41 for companies that incur research and development (R&D) costs in the United States. The credits are a tax incentive for performing qualified research in the United States, resulting in a credit to a tax return. For the first three years of R&D claims, 6% of the total qualified research expenses (QRE) form the gross credit. In the 4th year of claims and beyond, a base amount is calculated, and an adjusted expense line is multiplied times 14%. The credit was established as part of the Economic Recovery Tax Act of 1981. It was intended to act as an economic stimulus that would encourage investment within the United States. All industries and most types of businesses can qualify for the R&D tax credit if they can satisfy the 4-Part Test.