From 2018 to 2027, the estimated value of R&D tax credits to be claimed by U.S. corporations is $148 billion. To make it easier for companies to identify and claim these R&D tax credits and enhance cash flow, KPMG partnered with IBM to create the first Watson artificial-intelligence-powered tax credit solution.
KPMG tax professionals with IBM Watson technology can increase the number of R&D projects reviewed, thus increasing the client’s potential for more tax credits by uncovering more projects eligible for credit. Equipped with the AI-reviewed information, KPMG tax professionals focus on the right areas to drive further value through and more robust documentation for their clients.
Without this solution, companies would spend hundreds of personnel hours combing through reams of documents to find eligible projects. Clients who use the KPMG and IBM Watson joint solution are able to keep their engineers and researchers focused on innovative R&D work.
Companies who increase their investment in creating or improving products, processes, or technology can be rewarded for these activities through the U.S. R&D Tax Credit. Companies that meet the eligibility to claim these tax credits may reap sizeable financial benefits including enhanced cash flow and improved financial statement earnings.
Yet the process for claiming R&D tax credits can be cumbersome. Volumes of documents and contracts need to be manually analyzed to identify supporting evidence that the R&D project qualifies for tax credit.
That is until now…. As KPMG has built the first R&D tax credit solution with IBM Watson artificial intelligence. The combination of KPMG’s dedicated research credit services team and the Watson AI platform enables us to analyze more R&D project documentation, which means greater potential to uncover more tax credits for our clients. Some of our clients are even seeing more than a 1000% increase in the number of documents reviewed.
Analyzing a larger volume of documents also helps minimize our clients’ business disruption – less time engineers and researchers spend explaining their R&D projects means more time they spend on innovation.
This is how KPMG is leading the way in seizing new opportunities, embracing disruption and helping tax drive greater value. This is Tax Reimagined.
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