Posted by Jeffrey Feingold on 01.18.18
Developing new Artificial Intelligence (A.I.) and robotic technology as well as improving on past technologies requires research and development. Companies can and should be utilizing R&D tax credits during their innovation process in the development of any new Robotics or A.I. products and technologies.
Technology is evolving faster than ever and the development of Artificial Intelligence (A.I.) and robotic technologies are front and center. A.I. and robotic development is being used in healthcare, education, biotechnology, food processing, communication, just to name a few and spans through almost all industries of business. New brands such as Siri, Alexa and Google Home A.I. products are becoming household staples to most families across the United States. Searching online for information, turning on your house lights and even adjusting your room temperature are just a few every day tasks that A.I. is being utilized for. Companies are incorporating AI and robotic development into their production lines and processes saving billions for industries worldwide in the safety aspects alone.
The Research & Development Tax Credit is a federal program designed for companies that perform manufacturing in the U.S. The R&D Tax Credit, originally enacted as part of the Economic Recovery Tax Act of 1981, was designed to encourage investment in innovation. The credits are also intended for activities related to process design and development. Examples include new techniques, formulas, processes, software, and the use of innovative materials to create more reliable, energy-efficient products or processes.
Four-Part Test for Eligibility
R&D tax credit eligibility largely depends on whether the work you are conducting meets the criteria established by the IRS in its four-part test:
Listed are examples of the types of activities and innovation projects most likely to contain qualified research:
Artificial Intelligence is a wide term that covers a huge number of distinct areas of research and development. The R&D tax credit can be a lucrative incentive for innovative businesses in the A.I. and Robotics industry. Tax Point Advisors, a firm with expertise in working with small and midsize companies, can help to determine if activities performed by your company qualify for major cash-saving tax credit opportunities. For more information, call us at 800-260-4138 or please leave us a message below.