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Tax incentives empower AI tech, speeding up industrial transformation

After Yueqing was selected as one of the first pilot areas for AI-empowered manufacturing in Zhejiang Province, the local tax bureau rolled out a policy-guidance, compliance-safeguard and precision-service model for AI companies. Dongnan Electronics solved a longstanding micro switch feel-detection problem with an AI large model, tripling detection speed, with the tax bureau helping it claim about 240,000 yuan in R&D super-deduction. Jinka Intelligence trained vertical models on DeepSeek, and Jinhong Electric cut R&D cycles by over 30 percent using AI simulation.

Industry News国家税务总局Source
2026-08-26

After Yueqing became a provincial pilot for AI-empowered manufacturing, the local tax bureau adopted a model combining policy guidance, compliance safeguards and precision services, supporting enterprises throughout their AI journey. Dongnan Electronics, a micro switch maker whose feel-detection used to rely entirely on manual work, now uses an AI large model and tripled its inspection efficiency; tax staff coached the firm on R&D cost categorization, expected to deliver over 200,000 yuan in extra deductions. Jinka Intelligence integrated models like DeepSeek into gas and water utility scenarios and trained vertical models of its own, while Jinhong Electric used AI simulation for isolator switch design, cutting R&D cycles by more than 30 percent. Yueqing plans to assign over 70 more technology deputy executives to firms this year, with the tax bureau continuing to follow up.