Download or read book An Analysis of the Effectiveness of the Research and Experimentation Tax Credit Within a Q Model of Valuation written by Janet Wood Coberly and published by . This book was released on 1988 with total page 392 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Tax Policy and Administration written by DIANE Publishing Company and published by DIANE Publishing. This book was released on 1996-12 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: In 1981, Congress created the research tax credit to encourage business to do more research. Since its enactment on a temporary basis in 1981, the credit has been extended six times and modified four times. This report evaluates several recent studies of the effectiveness of the research tax credit to determine whether the studies provide adequate evidence to conclude that each dollar taken of the tax credit stimulates at least $1.00 of research spending in the short run, and about $2.00 of research spending in the long run.
Download or read book The R D Tax Credit written by Kenneth M. Brown and published by . This book was released on 1985 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Effectiveness of Research and Experimentation Tax Credits written by and published by . This book was released on 1995 with total page 82 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Effectiveness of Research and Experimentation Tax Credits written by and published by . This book was released on 1995 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In 1981 Congress enacted the research and experimentation (R & E) tax credit, as a means to encourage firms to conduct additional research and development. Congress has never made the R & E tax credit a permanent feature of the tax code; instead, it has extended and modified the policy on numerous occasions, twice after allowing it to expire. The credit once again expired in June 1995, putting Congress back in the position of deciding whether to extend the credit and, if so, for how long and with what terms. In principle, the R & E tax credit addresses an important public policy goal: stimulating private sector R & D spending, and thereby encouraging advancements in scientific and technological knowledge. As economists have long noted, R & D spending is prone to market failure due to the frequently high returns to society from R & D and the associated difficulty firms often face in appropriating the benefits of their research. Many analysts agree that the R & E tax credit is, in principle, a sensible policy instrument for encouraging the private sector to supply a more socially optimal level of R & D investment. In practice, however, the R & E tax credit often has been criticized for being indefinite in duration and unwieldy in form, for excluding certain types of R & D-performing firms, and for possibly subsidizing reseaith that would take place regardless of the credit. Existing studies of the R & E tax credit are informative in many respects but, as this report demonstrates, are dated, less than comprehensive, or otherwise unsatisfactory.
Download or read book Tax Policy and Administration written by United States. General Accounting Office and published by . This book was released on 1989 with total page 96 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Effect of State level Research and Development Tax Credits written by Lolita Anna Paff and published by . This book was released on 2001 with total page 562 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation is the first study to provide evidence of the effects state-level research and development tax credits have on firm research choice behavior. It is also the first on the federal or state level to provide evidence of the effectiveness of the alternate form of R & D tax credit. Based on a unique data set developed for this study, econometric modeling of firm R & D investment is tested with data from two sources on a sample of pharmaceutical and software firms headquartered in California or Massachusetts. As of 1997, California offered increased R & D standard computation tax credit rates for basic and in-house R & D and instituted the alternate form of credit. Massachusetts has made no change in its tax R & D credit rates, nor does it offer the alternate form of credit. The before (1994--1996) and after (1997--1999) R & D choice of firms in the two states is compared. There are two principle findings from the analysis. First, firms in the same industry but different located in different states face statistically different research tax prices. The R & D expenditure choice of the pharmaceutical firms in California applying the standard form of credit computation is consistent with the increased state-level R & D tax credit rates affecting firm R & D choice. The pharmaceutical results are robust to changes in computational assumptions and firms tested. Within the same state, firms in the two industries faced different tax prices and exhibited different R & D investment behavior. The R & D choice behavior of the software firms is consistent with the availability of the alternate credit leading to increased R & D expenditure as well. The outcomes highlight the need for research policy analysis to be performed at the industry level. Second, the model's results are robust differences in data source. The estimates obtained from the 10-K and Compustat data were similar but the Compustat results were biased upward. This suggests that studies based on Compustat data may overstate firms' sensitivity to research tax credit policy.
Download or read book Evaluating the Effectiveness of State R D Tax Credits written by Y. Ho and published by . This book was released on 2006 with total page 376 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper aims to analyze the effectiveness of state research and development (R & D) tax credit programs in the context of R & D-relevant policies and regional economic development policies. Although there were extensive theoretical recommendations for promoting private R & D, and state R & D tax credit programs have been one of the most popular regional economic development programs, only few evaluations of state R & D tax credit programs have been conducted. Inspired by this lack of previous study, this study provides an empirical finding for the effectiveness of these programs by applying a quasi-experimental approach, which means conducting experiments without randomness, for comparing states with tax credits and states without credits. For dealing with the embedded non-randomness, plausible other explanations that weaken the causal relationship between the programs and the effects were examined and ruled out as much as possible. Rival hypotheses were selected using different tax and government policies, overall business and R & D-specific environments, and firm characteristics. They were eliminated by constructing valid control groups, using the difference-in-differences and matching methods, selecting covariates and matching variables as observable variables, and absorbing year-specific fixed effects and cross-sectional-fixed effects as unobservable variables. The decision was made based on multiple estimates and multiple datasets. The research analyzed two sets of industries: the all industry group and high-technology industy. The major findings are: 1) state R & D tax credits positively affect the increase in R & D spending and increase in employment; 2) positive effects on R & D spending are widespread across the all industry group while positive effects on employment are limited to high-technology industry overall; 3) positive effects on R & D spending are also spread out to different sized firms in both the all industry group and high-technology industry; and 4) positive effects on employment are found mainly in large firms in both the all industry group and high-technology industry. These findings support the utilization of state R & D tax credits. As an indirect intervention, state R & D tax credit programs can increase productivity and encourage innovation by generating additional private R & D activities. State R & D tax credit programs can also make a positive contribution to regional economic growth through the growth of R & D-relevant and high-technology industries.
Download or read book 107 2 Committee Print Tax Expenditures Compendium of Background Material on Individual Provisions S Prt 107 80 December 2002 written by and published by . This book was released on 2003 with total page 660 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Research Tax Credit written by Congressional Research Congressional Research Service and published by CreateSpace. This book was released on 2014-11-04 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: Technological innovation is a primary engine of long-term economic growth, and research and development (R&D) serves as the lifeblood of innovation. The federal government encourages businesses to invest more in R&D than they otherwise would in several ways, including a tax credit for increases in spending on qualified research above a base amount. This report describes the current status of the credit, summarizes its legislative history, discusses policy issues it raises, and describes legislation to modify and extend it. The report will be updated as warranted by legislative activity or other developments affecting the credit. The research credit (also known as the research and experimentation (R&E) tax credit) has never been permanent. It expired at the end of 2011 and was retroactively extended by the American Taxpayer Relief Act of 2012 (P.L. 112-240) through the end of 2013. Since its enactment in mid- 1981, the credit has been extended 15 times and significantly modified 5 times. While the credit is usually assumed to be a single credit, it actually consists of four discrete credits: (1) a regular credit, (2) an alternative simplified credit (ASC), (3) a basic research credit, and (4) an energy research credit. A taxpayer may claim one of the first two and each of the other two, provided it meets the requirements for each. In essence, the research credit attempts to boost business investment in basic and applied research by reducing the after-tax cost of undertaking qualified research above a base amount, which in theory approximates the amount a company would invest in R&D in the absence of the credit. As a result, the credit's effectiveness hinges on the sensitivity of the demand for this research to decreases in its cost. It is unclear from available studies how sensitive that demand actually is. While most analysts and lawmakers endorse the use of tax incentives to generate increases in business R&D investment, some have some reservations about the current credit. Critics contend that it is not as effective as it could or should be because of certain problems with its design. These include a lack of permanence, uneven and inadequate incentive effects, non-refundability, and an ambiguous definition of qualified research. The House has passed two bills (H.R. 4438, the American Research and Competitiveness Act of 2014 on May 9 and H.R. 4, the Jobs for America Act on September 18) that would simplify and permanently extend the research tax credit. Under each measure, the credit would be equal to the sum of 20% of a taxpayer's qualified research expenditures (QREs) in the current tax year above 50% of average annual QREs in the previous three tax years, 20% of its basic research payments in the current tax year above 50% of average annual basic research payments in the three previous tax years, and 20% of the amounts paid or incurred by the taxpayer in the current tax year for qualified energy research conducted by an energy research consortium. The bills' estimated 10-year revenue cost is $155.5 billion. On April 3, the Senate Finance Committee marked up S. 2260, the Expiring Provisions Improvement, Reform, and Efficiency Act. Among other things, the bill would extend the existing research credit through the end of 2015. It would also change its design by allowing small, young companies that are unable to use some or all of any credit they could claim for the current tax year because of insufficient tax liability to apply up to $250,000 of their credit against their federal payroll tax liabilities. This option would be available only to companies that have been in business fewer than five years and whose annual gross receipts are less than $5 million.
Download or read book Research and Experimentation Tax Credit written by Jacob K. Mikhail and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The research tax credit is designed to boost business investment in what might be described as basic or applied research by reducing the after-tax cost of that research above a base amount. Although many analysts and lawmakers support the use of a tax incentive to generate increased business R&D investment, the same cannot be said of the current credit, whose effectiveness has been widely criticised. Critics contend the credit is not as effective as it could be because of certain flaws in its design, such as a lack of permanence and uneven and inadequate incentive effects. This book describes the current status of the tax credit, and summarises its legislative history. Key policy issues are examined as is the legislation in the 111th Congress to modify or extend this tax credit.
Download or read book An Empirical Analysis on the Effectiveness of the Research and Development Tax Credit written by Walter S. Jin and published by . This book was released on 1994 with total page 128 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Tax Policy written by United States. General Accounting Office and published by . This book was released on 1988 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Resources in Education written by and published by . This book was released on 2001 with total page 756 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Federal Program Evaluations written by and published by . This book was released on 1984 with total page 776 pages. Available in PDF, EPUB and Kindle. Book excerpt: Contains an inventory of evaluation reports produced by and for selected Federal agencies, including GAO evaluation reports that relate to the programs of those agencies.
Download or read book Federal Evaluations written by and published by . This book was released on with total page 1216 pages. Available in PDF, EPUB and Kindle. Book excerpt: Contains an inventory of evaluation reports produced by and for selected Federal agencies, including GAO evaluation reports that relate to the programs of those agencies.
Download or read book Research in Education written by and published by . This book was released on 1969 with total page 938 pages. Available in PDF, EPUB and Kindle. Book excerpt:
