Tax Policy: Additional Information on the Research Tax Credit (Testimony,
05/10/95, GAO/T-GGD-95-161).

Given the lack of empirical information for evaluating the research tax
credit's net benefit to society, GAO has not taken a position as to
whether the credit should be made a permanent part of the tax code or
allowed to expire.  GAO has, however, concluded that if Congress decides
to extend the credit in its current form, it may also want to ensure
that the credit provides an attractive incentive to most recipients at
an acceptable revenue cost.  One way this could be done is to require
that the base be reviewed and adjusted as needed.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  T-GGD-95-161
     TITLE:  Tax Policy: Additional Information on the Research Tax 
             Credit
      DATE:  05/10/95
   SUBJECT:  Tax credit
             Tax administration
             Research and development
             Corporations
             Manufacturing industry
             Eligibility criteria
             Cost effectiveness analysis
             Research and development costs
             Fiscal policies
             Tax law
IDENTIFIER:  Research Tax Credit
             
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