The research and development tax credit and bonus depreciation deliver broad benefits to the economy by rewarding a wide range of companies for increasing the amount of research they perform or for purchasing new capital equipment. A large body of academic research has found that these kinds of investments benefit society by contributing to higher pay for workers and by producing better products for consumers. Retroactively extending the R&D tax credit and bonus depreciation—or, better yet, making them permanent—would be a great start on the broader corporate tax reform that the United States needs, writes Joe Kennedy in The Hill.
