OpenAI Urges Treasury to Modernize Computer-Use Tax Credit Rules

Artificial intelligence company OpenAI urged the Treasury Department and the IRS to eliminate a rule that prevents a company from claiming a research tax credit for use of a third-party computer if it’s the “primary user” of the machine.

The regulations under tax code Section 41 are outdated and “insufficient for current technology,” the company said Monday in a letter responding to a request for comments on the department’s priorities.

Under Section 41, companies are allowed to claim a credit for in-house research expenses, including “any amount paid or incurred to another person for the right to use computers ...