AI is Democratizing Access to Tax Credits and Incentives—and It’s Just Getting Started

For decades, tax credits and incentives (C&I) have been among the most underutilized economic tools available to businesses. Designed to stimulate job creation, innovation, sustainability, and domestic manufacturing, these programs are notoriously complex and difficult to access, especially for small and mid-sized businesses. Historically, C&I benefits have disproportionately favored those with substantial resources and elite advisory firms. That landscape is changing.

Thanks to breakthroughs in AI, we are now witnessing a transformation in how companies of all sizes identify, evaluate, and capture incentives. AI is demystifying and democratizing access to these programs, removing barriers that have historically kept billions of dollars out of reach for everyday businesses. In doing so, it’s enabling a more inclusive, resilient, and dynamic economic future.

The Hidden Opportunity

It’s estimated that $350 billion credits and incentives go unclaimed by U.S. businesses each year, but that number may be much higher. The reasons vary, from lack of awareness, to regulatory complexity, to the inability to manage the compliance burden. For example, some programs have eligibility requirements buried in legal jargon spanning dozens of pages. Others are hyperlocal or change frequently with new legislation, making it nearly impossible for a lean finance team to keep up.

The result is a system designed to help businesses grow, but functionally accessible only to those with the resources to navigate it. This creates a structural imbalance where Fortune 100 companies routinely benefit from incentive programs, while the small manufacturer down the street misses out on hundreds of thousands of dollars that could transform their operations.

AI as the Equalizer

Modern AI systems can now ingest and structure data across thousands of federal, state, and local programs. Natural language processing (NLP) converts dense legalese into plain-language questions. Machine learning tracks regulatory changes in real time and notifies businesses when new programs apply or when compliance obligations shift.

Crucially, AI is no longer an enterprise-only advantage. Cloud-based platforms are placing these capabilities in the hands of regional CFOs and franchise owners. At Incentify, we’ve seen production companies reduce their C&I reporting workflows from three weeks to under one hour, allowing teams to shift focus from paperwork to strategic execution.

How AI Drives Economic Inclusion

Democratizing C&I access doesn’t just help individual businesses, it lifts the broader economy:

• Small businesses create jobs: They account for nearly two-thirds of net new jobs in the U.S. (Forbes)
• Capital remains constrained: Minority-owned and underserved businesses often face financing gaps—C&I can bridge that (Brookings).
• Domestic production is a priority: With legislation such as the CHIPS and Science Act, reshoring and domestic manufacturing are in focus.

By streamlining how companies discover and access credits, AI helps ensure that incentive dollars are more evenly distributed, and that smaller players can contribute meaningfully to national growth and innovation agendas.

Policy Watch: Fueling the Next Phase of AI-Powered Incentives

The 2025 One Big Beautiful Bill Act (OBBBA) introduced by the Trump administration marks a significant reorientation of U.S. economic priorities—and offers new momentum for C&I strategy, especially when paired with AI.

Rather than diminishing the landscape, the OBBBA can be seen as a call to innovate, encouraging businesses to move faster and smarter in how they discover and activate incentives.

Highlights of Opportunity:

• Refocus on Targeted Growth Incentives
  The bill aims to streamline and phase out some legacy clean energy credits, signaling a shift toward performance-based and high-impact incentives. For businesses able to move quickly, this opens new doors to reinvest and recalibrate around programs with clearer ROI and alignment to national economic goals (Tax Foundation).
• AI Innovation Encouraged through Regulatory Clarity
  With a 10-year moratorium on state-level AI regulation, companies now have a clear runway to invest and scale AI tools without fear of fragmentation (The Verge). This helps unlock broader use of AI in C&I workflows—from real-time compliance tracking to predictive funding analysis.
• Complementary to CHIPS and Science Act Objectives
  While the bill adjusts certain manufacturing-related credits, it does so in a way that complements the broader goal of accelerating domestic innovation (Reuters). For semiconductor and advanced manufacturing firms, the message is clear: get smarter, move faster, and use AI to maximize what’s available.

In this context, AI isn’t just helpful, it’s essential. With legislation evolving quickly, businesses that embed AI into their tax planning will not only keep pace but lead. The OBBBA is a reminder that policy shifts create new opportunity zones, and those who adapt fastest will be best positioned to capture them.

A Better Future for Businesses of All Sizes

AI doesn’t just surface opportunities, it prevents mistakes. Platforms now alert users when legislation changes, sites become eligible, or deadlines approach. This reduces risk, avoids rework, and protects limited resources.

AI also supports strategic planning. Want to open a new site? AI can tell you—within minutes, what credits may apply based on geography, headcount, capital expense, and more.

Where We’re Headed

The next phase of innovation lies in automated eligibility scoring, where AI will not only find programs but instantly calculate whether a business qualifies based on its existing data. This evolution turns a traditionally reactive and consultative process into a proactive and data-driven one, putting small businesses on equal footing with large enterprises.

As AI models continue to improve, we’ll see even more personalization, better outcomes, and less waste. That $350 billion opportunity? AI may be the only tool capable of bridging the gap at scale.

Final Thoughts

Credits and incentives are no longer the exclusive domain of multinationals. AI is flattening the field, empowering businesses of all sizes, in every sector, to fund their futures with tools once locked behind elite tax advisory gates.

If we’re serious about inclusive growth, economic resilience, and the revitalization of American industry, we need to ensure that tools like AI continue to push us forward, not just for the few, but for all.