The Research and Development (R&D) Tax Credit rewards companies for investing to create or enhance product, processes, or technologies in the United States, and it can provide sizeable financial benefits - 10 percent or more of your qualified R&D spending. Claiming R&D Tax Credits is an opportunity to improve cash flow, reduce tax liability, and increase earnings per share (EPS). However, the process of qualifying research activities and expenses, and substantiating claims for credits is often cumbersome. Our solution makes it more effective for companies to identify, claim and retain potential R&D income tax credits. KPMG’s dedicated research credits team coupled with IBM Watson AI can help clients increase the amount of R&D income tax credits they capture because the Watson technology is able to review more documentation while minimizing disruption to the client's business.
In the past year, KPMG clients have seen more potential for R&D tax credits, with some projects even seeing more than a 1000% increase in the number of documents reviewed. The solution helps clients uncover more potential activities that qualify for additional income tax credits, while reducing business disruption. As a result, engineers and scientists can stay focused on innovative R&D work by spending less time on income tax compliance activities.
