United States Ranks 27th For Global R&D Tax Incentives
The Information Technology and Innovation Foundation (ITIF) recently released a report that found the United States has dropped five places to 27th in regard to providing tax incentives to companies to encourage R&D. The report reviewed the tax policies in 42 nations using the B-index, which measures the generosity of R&D tax incentives. The United States pioneered the use of the R&D credit in the early 1980s. The U.S. Congress is reviewing options for renewing and expanding the R&D credit, which expired at the end of last year. The ITIF reported in 2010 that increasing this Alternative Simplified Credit from 14 percent to 20 percent would increase annual GDP growth by $66 billion and create at least 162,000 jobs. “While U.S. firms would still conduct some R&D without incentives, they wouldn’t conduct as much overall and certainly not as much in the United States,” says Rob Atkinson, president, ITIF. “That is why Congress should make the R&D tax credit more generous and permanent.” To learn more, visit www.itif.org.