Japan to Boost Tax Breaks for AI and Quantum Computing Research

The Japanese government plans to significantly increase tax credits for corporate research and development in artificial intelligence and quantum computing. This move aims to strengthen Japan's global competitiveness in these critical technological fields. Currently, companies can deduct up to 14% of their R&D costs from taxes. Under the new proposal, spending on targeted strategic areas like AI and quantum would qualify for a much higher deduction rate. Final details, including the exact percentage, are still under discussion. The initiative is part of a larger economic package designed to stimulate growth. Officials hope the enhanced incentive will encourage greater private-sector investment in next-generation technologies. A formal decision on the policy is expected by the end of this year.