# Fill out R&D narrative fields To substantiate a project for the R&D credit, you’ll need to enter some additional information. To substantiate a project for the R&D credit, you’ll need to enter some additional information. 1. Navigate to “Projects” page 1. “R&D Eligibility” in project side drawer 1. Toggle “Consider for R&D Credit” - Indicates that this project qualifies for the R&D credit 1. Disallowances → Must confirm that the project does not contain any of the disallowances 1. Purpose → Identify if the project focused on - creating a new product/process OR - improving an existing product/process AND what aspect was improved 1. Business Component → - Identify the Type of Business Component (Software, Physical, Product, Process, Other) - Select the Business Purpose (Sale, Lease, Internal use) - What is the business implications for the product/process and how will it be distributed 1. Technical Challenges → - Describe the specific technical challenges the project tackled in 1-2 paragraphs. 1. Process of Experimentation → - Describe how the project used a process of experimentation and iteration to discover the answers to the technical uncertainties. 1. Note: Technical Challenges and Process of Experimentation will be automatically generated when ticketing is connected or documents are uploaded ### FAQs 1. **What if the project does contain some of the disallowances?** Exclude those activities from the qualified project by 1. narrowing the project description and 2. excluding disallowed expenses when you allocate expenses on the Wage QREs. For example, you may have foreign employees that work on a qualified project. Simply exclude their time on the Wage QREs page or let NeoTax exclude them automatically based on location. 1. **What if multiple answers fit for the the business component type of purpose?** That’s okay, just select the one that fits best. This won’t have impact the evaluation of the credit. 1. **Do I need to fill these R&D narrative fields out for S. 174 only projects?** No, only projects that qualify for the R&D credit require these additional fields. 1. **How long should the technical challenge and process of experimentation sections be?** 1-2 paragraphs should be sufficient for companies under <5M in revenue. Mid-market and Enterprise companies should add additional detail to further substantiate.