ITIF outlines several steps Congress should take to strengthen the credit.

Expanding the Research and Development Tax Credit to Drive Innovation, Competitiveness and Prosperity

Expanding the R&D credit would spur job creation and innovation.

Create Jobs by Expanding the R&D Tax Credit

Statement by Robert Atkinson on the President’s Plan to Make Permanent the R&D Tax Credit

Statement by Robert Atkinson on the President's Plan to Make Permanent the R&D Tax Credit

Although it contains many positive proposals, the Tax Reform Act of 2014 would reduce the effectiveness of R&D tax incentives.

Why The Tax Reform Act of 2014 Should Expand, Not Cut, The R&D Tax Credit

The Research and Experimentation Tax Credit can play an important role in ensuring that the United States remains an attractive location for global companies to conduct research. Not only does the credit spur the retention and attraction of investment in R&D in the United States, new scholarly research shows convincingly that the credit is an effective tool for stimulating additional research, which in turn leads to faster economic growth. However, while the United States had the distinction of providing the most generous tax treatment of R&D of all OECD nations in the early 1990s, by 2004 we had dropped to 17th most generous.

The Research and Experimentation Tax Credit: A Critical Policy Tool for Boosting Research and Enhancing U.S. Economic Competitiveness

New budget proposal has the right idea for the R&E tax credit.

New Administration Budget has Smart Proposals for Boosting R&D

Reducing or eliminating the R&D tax credit to “pay for” a lower corporate rate would be a serious mistake. To boost productivity and competitiveness, Congress should lower the corporate rate while expanding the research credit’s Alternative Simplified Credit from 14 to 20 percent.

Why Expanding the R&D Tax Credit Is Key to Successful Corporate Tax Reform

Congress should broaden and expand the R&D credit for collaborative research by eliminating the energy restriction.

To-Do: Expand the R&D Credit for Collaborative Research

Congress should double the Alternative Simplified Credit, and lawmakers should pay for the increased research incentive by eliminating the tax break on qualified dividends, which mostly goes to wealthy stockholders.

To Do: Double the R&D and Alternative Simplified Credits

Recommendation

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Editors’ Recommendations

The Case for Improving America’s Research and Experimentation Tax Credit

Enhanced Tax Incentives for R&D Would Make Americans Richer

Related

Expanding the Research and Development Tax Credit to Drive Innovation, Competitiveness and Prosperity

Create Jobs by Expanding the R&D Tax Credit

Statement by Robert Atkinson on the President’s Plan to Make Permanent the R&D Tax Credit