FAQ on the R&D Tax Credit

Insights to inform your approach

Richard Marcos

Richard Marcos

Principal and Tax Credits Practice Leader, KPMG US, KPMG US

+1 213-817-3188

American companies operating in a diverse range of industries—from industrial manufacturing and financial services to aerospace and defense— can benefit from the federal Research and Development (R&D) Tax Credit. If your company invests to create or improve products, processes, or technology, you may be able to reduce your tax liability.

The R&D tax credit may be one of the more underutilized opportunities offered to American businesses. Many qualifying businesses do not take advantage of it. As a result, they may be leaving potentially significant tax credits on the table and missing an opportunity to improve cash flow.

If your business develops, improves or enhances products, processes, or technologies, then investigating your eligibility for the credit is certainly worthwhile. In fact, what the Internal Revenue Service (IRS) considers to be R&D is much more expansive than some business owners realize. Read these 10 questions and answers to learn more about the R&D Tax Credit and how KPMG uses IBM Watson® AI technology to help companies identify, document, and report eligible activities—all done with less disruption to your business and greater potential to uncover more credits.