qualified research
(4)The term “qualified research” shall not include any of the following: (A)Any research conducted after the beginning of commercial production of the business component. (B)Any research related to the adaptation of an existing business component to a particular customer’s requirement or need. (C)Any research related to the reproduction of an existing business component (in whole or in part) from a physical examination of the business component itself or from plans, blueprints, detailed specifications, or publicly available information with respect to such business component. (D)Any— (i)efficiency survey, (ii)activity relating to management function or technique, (iii)market research, testing, or development (including advertising or promotions), (iv)routine data collection, or (v)routine or ordinary testing or inspection for quality control. (E)Except to the extent provided in regulations, any research with respect to computer software which is developed by (or for the benefit of) the taxpayer primarily for internal use by the taxpayer, other than for use in— (i)an activity which constitutes qualified research (determined with regard to this subparagraph), or (ii)a production process with respect to which the requirements of paragraph (1) are met. (F)Any research conducted outside the United States, the Commonwealth of Puerto Rico, or any possession of the United States. (G)Any research in the social sciences, arts, or humanities. (H)Any research to the extent funded by any grant, contract, or otherwise by another person (or governmental entity). (e)For purposes of this section—