The short answer: Yes. Both companies that build AI and companies that use or customize AI can qualify in 2026 under the same IRS Four-Part Test, now enhanced by OBBBA’s restoration of immediate expensing under Section 174A.
The short answer: Yes. Both companies that build AI and companies that use or customize AI can qualify in 2026 under the same IRS Four-Part Test, now enhanced by OBBBA’s restoration of immediate expensing under Section 174A.
The short answer: Yes. Both companies that build AI and companies that use or customize AI can qualify in 2026 under the same IRS Four-Part Test, now enhanced by OBBBA’s restoration of immediate expensing under Section 174A.
The short answer: Yes. Both companies that build AI and companies that use or customize AI can qualify in 2026 under the same IRS Four-Part Test, now enhanced by OBBBA’s restoration of immediate expensing under Section 174A.
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Healthcare company develops an AI imaging tool. A radiology firm builds a custom CNN to identify anomalies in chest X-rays. The team experiments with architectures, trains on proprietary data, evaluates against clinical benchmarks, and iterates through multiple model versions. Strong R&D credit candidate.
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Healthcare company develops an AI imaging tool. A radiology firm builds a custom CNN to identify anomalies in chest X-rays. The team experiments with architectures, trains on proprietary data, evaluates against clinical benchmarks, and iterates through multiple model versions. Strong R&D credit candidate.
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Healthcare company develops an AI imaging tool. A radiology firm builds a custom CNN to identify anomalies in chest X-rays. The team experiments with architectures, trains on proprietary data, evaluates against clinical benchmarks, and iterates through multiple model versions. Strong R&D credit candidate.
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QUALIFIES
A fintech company develops a custom fraud detection model using proprietary transaction data. The team experiments with multiple neural network architectures, testing different feature engineering approaches to improve accuracy from 87% to 96%.
This qualifies because there is genuine technological uncertainty about the model architecture, and the team conducts systematic experimentation.
This qualifies because there is genuine technological uncertainty about the model architecture, and the team conducts systematic experimentation.
DOES NOT QUALIFY
A marketing agency uses ChatGPT to generate blog posts and social media content. They use the tool as-is, without modifying the underlying model or developing custom integrations.
This does not qualify because there is no technological uncertainty and no process of experimentation.
This does not qualify because there is no technological uncertainty and no process of experimentation.
1. Assuming AI work automatically qualifies.
Every project must independently pass the Four-Part Test.
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