Permanent R&D Tax Credit Offers Potential for Continuing U.S. Technology Leap-Ahead

By Williams, Robert H. | National Defense, March 1998 | Go to article overview

Permanent R&D Tax Credit Offers Potential for Continuing U.S. Technology Leap-Ahead


Williams, Robert H., National Defense


Currently there is a strong push on Capitol Hill to make the research and experimentation tax credit, which has been extended eight times since its introduction in 1981, a permanent feature of the U.S. industrial landscape.

This research and development incentive has had a profoundly positive impact on the economy, according to analysts, who say it has spurred U.S. competitiveness and, thus, has provided tangible benefit to all Americans.

Long Range Planning

Before examining its multiple attributes, it is appropriate to mention the decided advantage of making the R&D tax credit, as it is popularly known, an immutable feature of federal fiscal policy. Industry leaders contend by removing the uncertainty of periodic R&D tax credit extensions that they will be better able to engage in long range planning, which would tend to maximize the import of this critical technology incentive. This new state of affairs would prove to be a boon especially for the defense technology and industrial base that remains mired in a world of budgetary hurt.

Critical sectors within this base will be expected to produce a full array of systems that will keep the United States at the pinnacle of readiness not only in the coming decade but well into the 21 st century.

Analysts believe the tax credit via the productivity and economic growth that is generated will more than pay for itself. As a matter of fact, a Coopers & Lybrand study offers that Uncle Sam ultimately would gain $1.75 for every dollar the government spends on the credit.

The research paper says continuation of a vibrant research and development investment would contribute $13 billion a year to the U.S. economy's productivity capacity by the year 2010. Between now and then, a permanent extension would encourage industry to spend an estimated $41 billion on R&D.

Viewed another way, the authors of the study note, "Additional output capacity from gains in productivity produces a 31 percent annualized rate of return for R&D-more than twice the typical rate of return to investments in plant and equipment.

Rising Productivity

They also predict that rising productivity would stimulate nearly $60 billion in goods and services during the 12-year span that would include "$33 billion of additional domestic consumption, $3 billion of additional residential construction, $12 billion of additional business investment, and $10 billion of additional net exports."

Coopers & Lybrand asserts the resultant growth in high technology companies would increase skilled jobs and ultimately boost wages for all workers. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Permanent R&D Tax Credit Offers Potential for Continuing U.S. Technology Leap-Ahead
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.