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April 14, 2008
Innovation tax credit - an incomplete idea
From the Kaufman Foundation newsletter - NDE-news: April 14 - 20, 2008:
New Bill to Simplify R&D Tax Credit
Many of America’s leading innovative companies utilize the popular research and development tax credit, but unfortunately, the process for using the credits has become much too complicated and cumbersome. A new legislative plan from Congressman Jerry McNerney (D-CA) seeks to remedy this situation. His bill, the Innovation Tax Credit Act (H.R. 5681) would address these challenges by making the R&D tax credit permanent. At present, the credit is temporary and requires regular renewal by Congress. This process has the effect of increasing uncertainty about the credit’s future existence. Computing the credit is also quite complicated. HR 5681 would simplify the process by consolidating the current batch of five related credits into one simplified tax credit that will ultimately provide a credit for up to twenty percent of the cost of qualified R&D expenditures.
Learn more about HR 5681, the Innovation Tax Credit Act of 2008.
Simplification may be fine. But we really need to expand the definition. Innovation is not just R&D. We need to be investing in all aspects of innovation. That means we need a complete knowledge tax credit that couples the R&D tax credit with a training and education tax credit.
Posted by Ken Jarboe at April 14, 2008 10:10 AM
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