United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office General Government Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1994-05-13 monographic deposited born digital GA 1.13:GGD-94-139 https://www.govinfo.gov/app/details/GAOREPORTS-GGD-94-139 P0b002ee180371f04 f:gg94139 DGPO 2010-08-12 2011-03-23 GAOREPORTS-GGD-94-139 machine generated eng fdlp REPORT GAOREPORTS-GGD-94-139 GGD-94-139 Tax credit Tax administration Pharmaceutical industry Corporations Tax shelters Research and development Tax return audits Pharmacological research Tax law Investments IRS Industry Specialization Program Chapter Report GGD In 1991, Congress enacted the research and experimentation tax credit to encourage businesses to do research. GAO estimates that the pharmaceutical industry earned $1.24 billion worth of these tax credits between 1981 and 1990. The industry's credits as a share of the credits earned by all industries rose from four percent in 1981 to 12 percent in 1990. These credits were earned primarily by large companies--those with assets of $250 million or more. The biotechnology sector benefitted very little from the tax credit. The research and experimentation tax credit is difficult for the Internal Revenue Service (IRS) to administer because (1) auditors have to distinguish stages of research, (2) audit issues are often highly technical, and (3) successive proposed regulations cause uncertainty. https://www.govinfo.gov/content/pkg/GAOREPORTS-GGD-94-139/html/GAOREPORTS-GGD-94-139.htm GAO/GGD-94-139 https://www.govinfo.gov/app/details/GAOREPORTS-GGD-94-139 Chapter Report GAO/GGD-94-139; Tax Policy: Pharmaceutical Industry's Use of the Research Tax Credit; Tax credit Tax administration Pharmaceutical industry Corporations Tax shelters Research and development Tax return audits Pharmacological research Tax law Investments IRS Industry Specialization Program