SECTION 3. CLARIFICATION

OF SECTION 6.04 OF NOTICE 2023-63 REGARDING RESEARCH PERFORMED UNDER CONTRACT

For purposes of applying section 6.04 of Notice 2023-63, if a research provider that does not bear financial risk under the terms of the contract with the research

Bulletin No. 2024–5 617 January 29, 2024

recipient obtains an excluded SRE product right (that is, an SRE product right described in section 2.04(3) of this notice) and does not obtain any other SRE product right under the terms of such contract, then the costs paid or incurred by the research provider to perform SRE activities on behalf of the research recipient under such contract are not SRE expenditures.