Economic Study Shows R&D Tax Credit has significant impact.
Press Release Summary:
Ernst & Young's "The R&D Credit: An effective policy for promoting research spending," released by R&D Credit Coalition, shows federal research and development (R&D) credit significantly and positively impacts U.S. economy by increasing amount of research spending, jobs, and wages. In total, overall policy - existing credit plus strengthened alternative simplified credit - is estimated to increase annual private research spending by $15 billion (short-term) and $33 billion (long-term).
Original Press Release:
New Study Shows the R&D Tax Credit has a Significant Impact on Increasing Jobs and Research Spending in the United States
The R&D Tax Credit Spurs Innovation, Creates Jobs & Boosts GDP
Washington, D.C.: The R&D Credit Coalition today released a new economic study, "The R&D Credit: An effective policy for promoting research spending" by Ernst & Young that shows the federal research and development (R&D) credit has a significant positive impact on the U.S. economy by increasing the amount of research spending, jobs, and wages in the United States. These effects would be even larger if the credit were strengthened and made permanent.
The report finds that the R&D credit has a significant impact on private R&D spending:
"The research and development credit encourages businesses to make long-term investments in U.S.-based R&D that will create U.S jobs, boost the economy, and continue to spur innovation," said Ronald Dickel, Coalition Chairman. "We encourage Congress to make the tax credit a more effective incentive for companies to locate their R&D facilities and jobs in the U.S."
