Research credits

The current state of the research tax credit.

Edward Jankun

Edward Jankun

Managing Director, Co-leader, Research Credit, KPMG (US)

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The U.S. research tax credit was made permanent in 2015 and was not directly impacted by this year’s U.S. tax reform.  However, the credit can now be even more advantageous due to the interplay with tax law changes for 2018 and beyond.

A discussion paper on this and other recent developments are included below.  KPMG has a dedicated team both in the U.S. and globally to help answer your questions on R&D tax incentives. Please visit this website for continual updates or contact us with any questions.

 

A New Way to Uncover R&D Tax Credit Opportunities

To increase your confidence in and improve the efficiencies of the R&D tax credit process and quality of IRS-ready deliverables, KPMG has built the first automated platform focusing on qualitative documentation for qualified activities and contracts using IBM Watson’s cognitive analysis.

With the ability to review and analyze thousands of documents with speed and accuracy—without increasing human labor—KPMG can reliably and comprehensively validate your company’s R&D activities, possibly discover unknown credits, and quickly complete robust IRS deliverables. By embracing this offering, companies with ongoing R&D potentially benefit from improved cash flow, reduction in tax liability, and increased EPS while simultaneously enabling their human resources to focus on strategic work.

 

 

KPMG Research Credit Services with Watson

KPMG’s dedicated Research Credit Services team combined with the IBM Watson® cognitive platform can help companies to increase the volume and success in capturing R&D tax credit subsidies.

Research credit and meal and entertainment services

Reimagining tax...combining KPMG's tax experience with IBM Watson's cognitive capabilities, discover corporate tax benefits and risk with greater confidence.

Latest R&D tax credit news

The R&D Credit: Top of Mind Questions

We polled over 500 tax professionals during our recent TaxWatch Webcast and asked them how they are working with the R&D tax credit. See what we discovered.

R&D Credits for Industrial Manufacturing

The Tax Cuts and Jobs Act of 2017 (tax reform) impacts the industrual manfacturing industry in many ways. Changes to income tax rates, NOL use, AMT, interaction with BEAT, along with many positive regulatory changes the past several years, all increase the value of R&D credits for the industry.

R&D Credit for Blockchain

U.S. research and development (R&D) tax credits are incentives of up to 15.8 percent for eligible incremental development spending, resulting in potentially millions of dollars in tax savings. Companies engaging in R&D efforts in blockchain may be able to qualify for this credit.

U.S. Tax reform considerations Accounting methods and credit services (AMCS)

The new tax law enacted in December 2017 brings a multitude of changes to the Internal Revenue Code. It not only reduced the corporate tax rate but has had an immediate impact on income and expense recognition, cost, recovery, and credits. From considerations on increased expensing, income inclusion, mandatory repatriation, BEAT, to section 199 repeal, learn about the different areas in tax that may be affected by the new law.

Tax Reform: And the Winner Is … R&D

Tax reform changed the playing field for taxpayers engaged in research and development (“R&D”) activities. This article highlights new and modified provisions of the tax law that taxpayers engaged in R&D activities should consider, whether or not the taxpayers claimed the R&D tax credit in the past.

A Practical Analysis of the New IRS Research Credit Directive

The Large Business and International (LB&I) Division of the IRS recently issued guidance on the examination of the credit for increasing research activities under tax code Section 41 claimed by LB&I taxpayers (the Directive). The Bloomberg BNA article, written by KPMG’s Research & Credit professionals, provides an overview of the Directive, explores practical aspects to consider before complying, and analyzes the impact on various industries.

Our experience by industry

Our Research Credits Services group has a broad range of experience in different business sectors. Discover how we might be able to help you.

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