    [Budget of the United States Government]
    [III. Creating a Better Government]
    [4. General Science, Space, and Technology]
    [From the U.S. Government Publishing Office, www.gpo.gov]

                   4.  GENERAL SCIENCE, SPACE, AND TECHNOLOGY

      ----------------------------------------------------------------------

                   Table 4-1.  Federal Resources in Support of General Science, Space, and Technology
                                                (In millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                                   Estimate
                   Function 250                   2000   -----------------------------------------------------------
                                                 Actual     2001      2002      2003      2004      2005      2006
    ----------------------------------------------------------------------------------------------------------------
    Spending:
      Discretionary Budget Authority..........    19,203    20,861    21,191    21,892    22,441    22,910    23,488
      Mandatory Outlays:
        Existing law..........................        36        94       126       158       150        92        53
    Tax Expenditures:
      Existing law............................     3,310     7,700     8,440     7,160     6,590     4,700     3,260
    ----------------------------------------------------------------------------------------------------------------

      ----------------------------------------------------------------------
      More than half of the Nation's economic productivity growth in the
    last 50 years is attributable to technological innovation and the
    science that supported it. Appropriately, the private sector makes the
    largest investments in technology development. The Federal Government,
    however, also plays a role. Total Federal research and development would
    be at an all-time high in inflation-adjusted terms if the President's
    proposal is approved.
      Within the General Science, Space, and Technology function, the
    Federal Government supports areas of cutting-edge science, through the
    National Aeronautics and Space Administration (NASA), the National
    Science Foundation (NSF), and the Department of Energy (DOE). The
    activities of these agencies contribute to a greater understanding of
    the world in which we live, ranging from the edges of the universe to
    the smallest particles, and to new knowledge that may have immediate
    applications for improving our lives. Because the results of basic
    research are unpredictable, developing performance goals for this area
    presents unique challenges.
      Each of these agencies funds research and contributes to the Nation's
    cadre of skilled scientists and engineers. As a general goal for
    activities in this function, at least 80 percent of the research
    projects will be reviewed by appropriate peers and selected through a
    merit-based competitive process. Another important Federal role is to
    construct and operate major scientific facilities and capital assets for
    multiple users. These include telescopes, satellites, oceanographic
    ships, and particle accelerators. Many of today's advances in medicine
    and other fields rely on these facilities. As general goals:
      agencies will keep the development and upgrade of these
              facilities on schedule and within budget, not to exceed 110
              percent of estimates; and
      in operating the facilities, agencies will keep the operating
              time lost due to unscheduled downtime to less than 10 percent
              of the total scheduled possible operating time, on average.
      The budget proposes $21.2 billion to conduct activities in support of
    general science, space, and technology. The Government also stimulates
    private investment in these activities through over $8.4 billion a year
    in tax credits and other preferences for research and development (R&D).
    With the 2002 Budget, the President proposes that the tax credit for
    research and experimentation be made permanent.

    [[Page 30]]

    National Aeronautics and Space Administration (NASA)

      The budget proposes $13.6 billion for NASA activities in this
    function. NASA serves as the lead Federal agency for R&D in civil space
    activities, working to expand frontiers in air and space to serve
    America and improve the quality of life on Earth. To carry out these
    activities, NASA pursues this vision through balanced investment in five
    enterprises: Space Science, Earth Science, Biological and Physical
    Research, Aero-Space Technology, and Human Exploration and Development
    of Space.
      NASA's achievements in 2000 included: launching Terra, the first
    mission in the Earth Observing System series of spacecraft; discovering
    potential evidence of recent liquid water flows on the surface of Mars
    from the Mars Global Surveyor spacecraft; securing the arrival of the
    Shoemaker Near Earth Asteroid Rendezvous mission at the asteroid Eros,
    the first spacecraft ever to orbit an asteroid; and continuing
    successful assembly of the International Space Station in orbit.

      Space Science: Space Science programs, for which the budget proposes
    $2.8 billion, are designed to enhance our understanding of how the
    universe was created, what fundamental rules govern its evolution, how
    stars and planets evolve and die, how space phenomena affect Earth, and
    the possible existence of life beyond Earth. In 2000, NASA developed and
    launched Hubble Servicing Mission 3A, the Imager for Magnetopause-to-
    Aurora Expansion mission, and contributions to the X-ray Multi-Mirror
    and Cluster-2 missions, with an average one-percent cost overrun. The
    High Energy Solar Spectroscopic Imager mission and the Thermal,
    Ionosphere, and Mesosphere Energetics and Dynamics mission did not
    launch as planned in 2000 due to spacecraft development issues and
    launch vehicle delays. The Mars Polar Lander mission was lost when it
    did not land successfully on Mars as planned in 2000. Although scheduled
    to launch in 2000, the High-Energy Transient Explorer mission was
    launched shortly after the end of the year.
      For 2000, the NASA Advisory Council, an independent panel, indicated
    that 34 of 65 performance plan objectives and 18 of 19 science
    objectives for Space Science have been successfully met. In 2002:
       NASA will successfully complete its performance goal for
              design and development of projects to support future Space
              Science research. These development projects represent near-
              term investments that will allow future research in pursuit of
              the strategic plan's science objectives. Completion will be
              demonstrated by a successful rating from the NASA Advisory
              Council or an equivalent senior-level external review
              committee. This rating will be based on achievement of six of
              the eight pre-determined performance objectives, four of which
              address launch readiness for the Space Infrared Telescope
              Facility, the Galaxy Evolution Explorer, the Comet Nucleus
              Tour mission, and the Hubble Space Telescope Servicing Mission
              3B.
       NASA's annual performance goals in support of strategic plan
              Space Science objectives will be rated as being successfully
              met by NASA's Advisory Council or an equivalent senior-level
              external review committee. Examples of these objectives
              include: learn how galaxies, stars, and planets form,
              interact, and evolve; understand the formation and evolution
              of the Solar System and the Earth within it; and understand
              our changing Sun and its effects throughout the Solar System.
              Each of these performance goals calls for obtaining at least
              80 percent of the expected scientific data from operating
              missions that support the relevant science objective.
       NASA will continue to expand the integration of education and
              enhanced public understanding within its Space Science
              research and flight mission programs. Performance objectives
              in support of this effort call for Space Science-funded
              education and public outreach activities for every funded
              Space Science mission, which will result in projects in at
              least 40 States. These projects will range from elementary
              schools to graduate students and post-graduates. In addition,
              Space Science will ensure that Enterprise-funded projects are
              underway in Historically Black Colleges and Universities,
              Hispanic Serving Institutions, and Tribal Colleges.

    [[Page 31]]

      Earth Science: Earth Science programs, for which the budget proposes
    $1.5 billion, focus on the effects of natural and human-induced changes
    on the global environment through long-term, space-based observation of
    Earth's land, oceans, and atmospheric processes. In 2000, NASA
    successfully launched five spacecraft (Terra, ACRIMSAT, the Shuttle
    Radar Topography Mission, and two National Oceanic and Atmospheric
    Administration (NOAA) weather satellites (GOES-L, NOAA-L)), and
    delivered four instruments to international spacecraft, with an average
    seven-percent cost overrun. Launches of spacecraft expected in 2001 have
    been delayed: Aqua until no earlier than July 2001, IceSAT until
    December 2001, and Triana pending shuttle availability. Users have
    routinely received earth science data products within five days of
    receipt or production of the requested data product.
      The NASA Advisory Council concluded that 43 of 47 Earth Science
    performance targets were successfully met. In 2002:
      NASA will successfully launch and operate at least two of
              three planned spacecraft, IceSAT, Gravity Recovery and Climate
              Experiment and the Solar Radiation and Climate Experiment
              within 10 percent of their schedules and budgets. For those
              spacecraft already successfully launched, NASA Earth Science
              will obtain at least 80 percent of the expected scientific
              data;
      NASA will increase by 50 percent the volume of climate data it
              archives over the 2001 target of 442 terabytes, increase the
              number of products delivered from its archives by 10 percent
              over the 2001 target of 5.4 million products delivered, and
              make the data available to users within five days; and,
      NASA's Advisory Council will be able to rate all near-term
              Earth Science objectives as being met or on schedule. Examples
              of these objectives include: observe and document land cover
              and land use change and impacts on sustained resource
              productivity; and understand the causes and impacts of long-
              term climate variations on global and regional scales.

      Aero-Space Technology: Aero-Space Technology programs, for which the
    budget proposes $1.5 billion, work with other NASA enterprises,
    industry, and academia to develop and test technologies that reduce risk
    and improve cost performance for future spacecraft and space
    transportation systems. In 2000, NASA initiated assembly of the X-37
    flight test vehicle. The X-33 and X-34 programs did not perform flight
    tests as planned in 2000, due to technical problems encountered during
    development. Both programs have been canceled. Depending on selections,
    NASA will develop additional 2002 Aero-Space Technology goals based on
    Second Generation Reusable Launch Vehicle awards in 2001. In 2002:
      NASA will perform the rollout and begin test flights of the X-
              37 vehicle. This vehicle will serve as a platform on which to
              test and verify advanced technologies in the area of
              lightweight composite airframes, integrated vehicle health
              monitoring, and thermal protection systems.
      The Space Base program will complete working prototypes of
              over 40 micro-scaled and low-power electronic spacecraft and
              sensor components. These components can lead to future science
              spacecraft that are the functional equivalent or better of
              current spacecraft but with less than one-tenth the volume and
              mass.

      Human Exploration and Development of Space: Human Exploration and
    Development of Space (HEDS) programs, for which the budget proposes $7.3
    billion, focus on the use of human skills and expertise in space. In
    2000, the Space Shuttle flew four successful missions, including the
    Hubble Space Telescope Servicing Mission 3A that replaced failing gyros
    on the Hubble. The Shuttle Radar Topography Mission, a joint Department
    of Defense/NASA payload to study the earth, successfully mapped over 98
    percent of the available terrain. Two flights to the International Space
    Station delivered equipment and supplies to set the stage for future
    assembly missions and to prepare for the first Expedition crew.
    Improvements to the Space Shuttle system achieved an additional 10-
    percent increase in predicted reliability over the 1999 levels, and
    completed the first flight of a new upgraded cockpit. Space Shuttle
    operations continued to perform well and observed an average of six
    anomalies per flight, achieved 100

    [[Page 32]]

    percent on-orbit mission success for primary payloads, and achieved a
    12-month flight preparation cycle. The International Space Station
    program delivered, as planned, two-thirds of the total U.S. flight
    hardware to the launch site, and also conducted successful operations
    throughout the year. However, projected cost overruns have required a
    major restructuring of the program in 2002, which should control cost
    growth, while enabling accommodation of contributions from international
    partners. In 2002:
      NASA will successfully complete a majority of planned
              operations schedules and milestones for 2002 for the
              International Space Station. For example, NASA plans to
              conduct permanent on-orbit operations with crew support
              dedicated to assembly, vehicle operations, payload operations,
              and early research, and conduct the first Space Shuttle flight
              to the Space Station dedicated to research; and
      NASA will ensure that Space Shuttle safety, reliability,
              availability, and cost will improve, by achieving eight or
              fewer flight anomalies per mission, 100 percent on-orbit
              mission success for primary payload on-orbit operations, and a
              12-month manifest preparation time. NASA will complete the
              implementation of the Alternate Turboprop to improve the
              safety of flight operations and continue safety and
              supportability upgrades to maintain Space Shuttle
              infrastructure.

      Biological and Physical Research: NASA's Biological and Physical
    Research programs, for which the budget proposes $380 million, focus on
    basic and applied research to support the safe and effective human
    exploration of space, as well as the use of the space environment as a
    laboratory for increasing our understanding of biological, physical, and
    chemical processes. In 2000, the Biological and Physical Research
    Enterprise was created as a separate entity from the HEDS Enterprise to
    provide a greater focus on biological and physical research. The new
    Office of Biological and Physical Research (OBPR) and its predecessor
    organization, the Office of Life and Microgravity Sciences and
    Applications, conducted significant commercial research on the May Space
    Shuttle mission to the Space Station, and inaugurated the Space Station
    research era by conducting the first long-duration experiment on the
    International Space Station. In 2002:
      OBPR will continue to build a productive scientific community
              to utilize its space assets, expanding agency support to
              approximately 1,000 scientific investigations (from 877
              reported in 1999); and
      NASA will collaborate with the National Cancer Institute to
              develop and test cutting-edge methods and instruments to
              support molecular-level diagnostics for physiological and
              chemical processes monitoring.

    Management Reform Goals

      To fulfill the President's commitment to make Government more market-
    based, NASA will pursue management reforms to promote innovation, open
    Government activities to competition, and improve the depth and quality
    of NASA's R&D expertise. These reforms, described below, will help
    reduce NASA's operational burden and focus resources on Government-
    unique R&D at NASA.
      International Space Station. NASA will undertake reforms and
              develop a plan to ensure that future Space Station costs will
              remain within the President's 2002 Budget plan. Key elements
              of this plan will: restore cost estimating credibility,
              including an external review to validate cost estimates and
              requirements and suggest additional options as needed;
              transfer Space Station program management reporting from the
              Johnson Space Center in Texas to NASA Headquarters until a new
              program management plan is developed and approved; and open
              future Station hardware and service procurements to innovation
              and cost-saving ideas through competition, including launch
              services and a Non-Government Organization for Space Station
              research.
      Space Shuttle Privatization. NASA will aggressively pursue
              Space Shuttle privatization opportunities that improve the
              Shuttle's safety and operational efficiency. This reform will
              include continued implementation of planned and new
              privatization efforts through the Space Shuttle

    [[Page 33]]

              prime contract and further efforts to safely and effectively
              transfer civil service positions and responsibilities to the
              Space Shuttle contractor.
      Space Launch Opportunities. NASA's Space Launch Initiative
              provides commercial industry with the opportunity to meet
              NASA's future launch needs, including human access to space,
              with new launch vehicles that promise to dramatically reduce
              cost and improve safety and reliability. NASA will undertake
              management reforms within the Space Launch Initiative,
              including: ensuring vehicle affordability and competitiveness
              by limiting requirements to essential needs through commercial
              services; creating requirements flexibility, where possible,
              to accommodate innovative industry proposals; validating
              requirements through external, independent review;
              implementing a well-integrated risk-reduction investment
              strategy that makes investments only after requirements and
              vehicle options are well-understood, to ensure a viable
              competition by the middle of the decade for initial Station
              cargo and crew launch services; ensuring no set-aside funds
              for non-industry vehicles like the Space Shuttle; and
              achieving affordable, near-term successes in Next Generation
              Launch Services and Alternative Access to the Space Station
              and integrating these near-term activities into longer-term
              planning.
      Critical Capabilities. U.S. academia and industry provide a
              rich R&D resource that NASA can tap to strengthen its mission
              capabilities. NASA will develop an integrated, long-term
              agency plan that ensures a national capability to support
              NASA's mission by: identifying NASA's critical capabilities
              and, through the use of external reviews, determining which
              capabilities must be retained by NASA and which can be
              discontinued or led outside the agency; expanding
              collaboration with industry, universities and other agencies,
              and outsourcing appropriate activities to fully leverage
              outside expertise; and pursuing civil service reforms for
              capabilities that NASA must retain, to ensure recruitment and
              retention of top science, engineering and management talent at
              NASA.

    National Science Foundation (NSF)

      Under the President's plan, between 2000-2002, NSF's budget will grow
    by 15 percent to $4.5 billion. This significant increase is consistent
    with the President's support for increasing the Federal investment in
    basic R&D, and funding NSF as the primary agency for supporting peer-
    reviewed, competitively awarded, long-term, high-risk research conducted
    through our Nation's university systems. For 2003, the Administration
    will undertake a budgetary review to determine how best to support the
    NSF's budget in a sustained manner over time.
      While NSF represents just three percent of Federal R&D spending, it
    supports nearly half of the non-medical basic research conducted at
    academic institutions, and provides 30 percent of Federal support for
    mathematics and science education.
      NSF research and education investments are made in three primary
    areas:

      People: Activities to facilitate development of a diverse and talented
    work force of scientists, engineers, and well-prepared citizens account
    for more than 20 percent of NSF's budget. In 2002, NSF will invest $1.0
    billion in this area. NSF supports formal and informal science,
    mathematics, engineering and technology education at all levels,
    including multidisciplinary education and training for graduate
    students. In addition, resources support projects to develop curriculum,
    enhance teacher professional development, and provide educational
    opportunities for students from pre-K through postdoctoral work. In
    2000, the three major systemic efforts implemented mathematics and
    science standards-based curricula in 6,348, or over 80 percent, of the
    7,630 participating schools. NSF awards provided intensive professional
    development to a total of 89,723 teachers, substantially exceeding the
    performance goal of 65,000. For 2002, NSF will begin the President's
    $200 million Math and Science Partnership initiative.
      In 2002, at least half of the States will activate
              partnerships with institutions of higher education aimed at
              strengthening K-12 math and science education through the
              President's Math and Science Partnership initiative. These
              partnerships can

    [[Page 34]]

              involve local school districts and will address issues such as
              preparation and professional development of math and science
              teachers, implementation of high standards for math and
              science, and address gaps in performance between majority and
              minority and disadvantaged students.

      Ideas: Approximately one-half of NSF's resources support research
    projects performed by individuals, small groups, and centers. In 2002,
    NSF will invest $2.2 billion in this area.
      In 2002, results over the period studied will demonstrate
              significant achievement for the majority of the following
              indicators: important discoveries; a robust fundamental
              knowledge base; connections between discovery and learning,
              innovation, or societal advancement; partnerships that enable
              the flow of ideas among academic, public or private sectors;
              and leadership in fostering newly developing or emerging
              areas. NSF's performance will be determined by aggregating the
              performance indicator assessments provided by independent
              external committees of experts.

      Tools: NSF will invest $1.0 billion in this area to provide state-of-
    the-art shared tools for research and education, such as instrumentation
    and equipment, multi-user facilities, accelerators, telescopes, research
    vessels and aircraft, and earthquake simulators. In addition, resources
    will support large databases as well as computation and computing
    infrastructures for science, engineering, or education. Nearly a quarter
    of NSF's budget is targeted to providing the tools required for cutting-
    edge research.
      In 2002, NSF facilities will continue to meet the function-
              wide goals to remain within cost and schedule.

    Management Goals

      NSF has identified management and investment process goals to address
    the efficiency and effectiveness of administrative activities, and to
    focus on the means and strategies to achieve its outcome goals. In 2002:
      at least 85 percent of basic and applied research funds will
              be allocated to projects that undergo merit review;
      for 70 percent of proposals, NSF will be able to inform
              applicants within six months of receipt whether their
              proposals have been declined or recommended for funding. In
              2000, NSF processed 54 percent of proposals within six months;
              and
      NSF will increase the average annualized award size for
              research projects to $111,000, compared to a goal of $109,000
              in 2001.

    Management Reforms

      To fulfill the President's commitment to make Government more results-
    oriented, NSF will undertake management reforms, focusing on performance
    and results.
      Study Reorganizing Research in Astronomy and Astrophysics: NSF
              and NASA provide more than 90 percent of Federal funds for
              academic astronomy research and facilities. Historically, NASA
              has funded space-based astronomy and NSF has funded ground-
              based astronomy, as well as astronomy research proposals.
              Several changes have evolved which suggest that now is the
              time to assess the Federal Government's management and
              organization of astronomical research. NSF and NASA will
              establish a Blue Ribbon Panel to assess the organizational
              effectiveness of Federal support of astronomical sciences and,
              specifically, the pros and cons of transferring NSF's
              astronomy responsibilities to NASA. The panel may also develop
              alternative options. This assessment will be completed by
              September 1, 2001.
      Document the Efficiency of the Research Process. NSF asserts
              that the current size of its grants and their duration might
              be resulting in an inefficient research process at U.S.
              academic institutions. Researchers might be spending too much
              time writing proposals instead of doing actual research. NSF
              has increased grant size and duration in previous years,
              particularly through its priority research areas; however,
              there is little documentation that this is having a positive
              impact on research output. With the assistance of U.S.
              academic research institutions, NSF will develop metrics to
              measure the

    [[Page 35]]

              efficiency of the research process and determine the ``right''
              grant size for the various types of research the agency funds.
              These metrics and grant size determination will be developed
              in time for consideration of the 2003 NSF budget request.
      Enhance NSF Capability to Manage Large Facility Projects. NSF
              has several multi-year, large facility projects awaiting
              approval for funding. NSF will enhance its capability to
              manage proposed projects, given the magnitude and costs of
              future projects. NSF will develop a plan for costing,
              approval, and oversight of major facility projects, and also
              will enhance its capability to estimate costs and provide
              oversight of project development and construction.
      Improve NSF's Ability to Administer and Manage its Program
              Activities. Although NSF has had robust increases in its
              program responsibilities and budgets in the past decade,
              funding for administration and management has remained
              relatively flat. NSF has been able to keep pace with the
              increased workload by investing in information technology.
              Both the NSF Inspector General and the NSF Management Controls
              Committee have expressed concern about the adequacy of
              staffing at a time when the agency is facing turnover and
              recruitment problems and management of more complex
              programmatic activities. They also raise concerns with systems
              and data management. NSF will develop a five-year strategic
              plan for the work force and information technology needs of
              the agency in time for consideration of the 2003 Budget.

    Department of Energy (DOE)

      The budget proposes $3.2 billion in 2002 for DOE science programs and
    supporting activities. DOE's Office of Science is one of the Nation's
    leading source of support for basic research in the physical sciences,
    conducting research at universities and the national laboratories. DOE
    also operates major scientific facilities including particle
    accelerators, magnetic confinement fusion reactors, synchrotron light
    sources, neutron sources, supercomputers, and high-speed networks that
    researchers use in fields ranging from the physical and materials
    sciences to the biomedical and life sciences. These facilities are
    available, on a competitive basis, to scientists and engineers in
    universities, industry, and other Federal agencies.

      Basic Energy Sciences: The budget proposes $1.0 billion for Basic
    Energy Sciences (BES), which supports basic research in materials
    science, chemistry, engineering, geoscience, plant biology, and
    microbiology. As part of its mission, BES plans, constructs, and
    operates major scientific user facilities. In 2000, Los Alamos National
    Laboratory's Lujan Neutron Scattering Center delivered only 79 percent
    of scheduled operating time, missing its target of no more than 10
    percent unscheduled downtime. A recent review found the Lujan Center
    staff to be seriously over-committed. In 2002:
      DOE will meet the cost and schedule milestones for
              construction and upgrade of scientific user facilities as
              confirmed by regular external independent reviews. Major
              ongoing projects include construction of the Spallation
              Neutron Source (a powerful tool to explore materials structure
              and properties) and an upgrade of the SPEAR3 storage ring at
              the Stanford Synchrotron Radiation Laboratory; and
      DOE science programs will significantly increase their funding
              for basic research on renewable sources of energy, to advance
              cost-effective means to further diversify the Nation's energy
              supply.

      Advanced Scientific Computing Research: The budget proposes $166
    million for Advanced Scientific Computing Research, which supports
    applied mathematics, computer science, and networking research, and
    operates supercomputer, networking and related facilities to enable the
    analysis, simulation, and prediction of complex physical phenomena.
      By the end of 2002, DOE will review the Integrated Software
              Infrastructure Centers, newly established in 2001, to ensure
              effective coupling of these centers to scientific application
              pilot projects and teams funded throughout the Office of
              Science.

    [[Page 36]]

      Biological and Environmental Research: The budget proposes $443
    million for Biological and Environmental Research, which supports basic
    research to identify, understand, and anticipate the long-term health
    and environmental consequences of energy production, development, and
    use. In addition to its accomplishments in genomics, DOE plays a major
    role in understanding the global carbon cycle.
      In 2002, DOE will develop and test a fully-coupled climate
              model that integrates the atmosphere with the ocean, land, and
              sea ice, with higher spatial resolution than is presently
              available; and
      By the end of 2002, the DOE Joint Genome Institute DNA
              sequencing will complete the high quality DNA sequence of
              human chromosomes 5 and 19 and produce six million base pairs
              of DNA sequence from model organisms to help understand the
              human sequence.

      High Energy and Nuclear Physics: The budget proposes $1.1 billion for
    High Energy and Nuclear Physics, which strives to understand the nature
    of matter and energy in terms of the most elementary particles and
    forces, and to more completely explain the structure and interactions of
    atomic nuclei.
       In 2002, DOE will capitalize on its opportunities to discover
              the particle that gives rise to mass, to search for physics
              not adequately described by the Standard Model, and to confirm
              and characterize neutrino oscillations and neutrino mass.

      Fusion Energy Sciences: The budget proposes $238 million for DOE's
    Office of Fusion Energy Sciences, which conducts research to advance
    plasma science, fusion science, and fusion technology. DOE will continue
    to reorient its fusion program to focus on developing the scientific
    understanding necessary to support fusion as a practical energy source.
      In 2002, DOE will study feedback stabilization as means to
              control disruptive plasma oscillations in the recently
              upgraded DIII-D fusion reactor.

    Tax Incentives

      Along with direct spending on R&D, the Federal Government has sought
    to stimulate private investment in these activities with tax
    preferences. The current law provides a 20-percent tax credit for
    private research and experimentation (R&E) expenditures above a certain
    base amount. The credit, which expired in 1999, was retroactively
    reinstated for five years, to 2004, in the Tax Relief Extension Act of
    1999. The budget proposes to make the R&E tax credit permanent. It will
    cost $9.9 billion from 2002 to 2006 (see Table S-10).
      A permanent tax provision also lets companies deduct, up front, the
    costs of certain kinds of R&E, rather than capitalize these costs. This
    tax expenditure will cost $1.7 billion in 2002. Finally, equipment used
    for research benefits from relatively rapid cost recovery. The cost of
    this tax preference is calculated in the tax expenditure estimate for
    accelerated depreciation of machinery and equipment.