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 1995-04-03 monographic deposited born digital GA 1.13:T-GGD-95-140 https://www.govinfo.gov/app/details/GAOREPORTS-T-GGD-95-140 P0b002ee180382685 f:tgg95140 DGPO 2010-08-12 2011-03-23 GAOREPORTS-T-GGD-95-140 machine generated eng fdlp REPORT GAOREPORTS-T-GGD-95-140 T-GGD-95-140 Tax credit Tax administration Research and development costs Fiscal policies Corporations Taxpayers Cost effectiveness analysis Eligibility criteria Research and development Manufacturing industry Research Tax Credit Testimony GGD In 1981, Congress created the research tax credit to encourage U.S. businesses to do more research, thereby boosting their competitiveness in the world economy. The credit will expire in June 1995. In tax year 1992, corporation earned slightly more than $1.5 billion worth of research credits, most of it going to large manufacturing firms, particularly those producing chemicals, including drugs, motor vehicles, and machinery. Given a lack of data for evaluating the credit's net benefit to society, GAO has not taken a position as to whether the research credit should become a permanent part of the tax code or allowed to expire. GAO has concluded, however, that if Congress decides to extend the credit it may also want to ensure that the credit continues to provide an attractive incentive to most recipients at an acceptable revenue cost. One way this could be achieved it by requiring that the base be reviewed periodically and adjusted as needed. https://www.govinfo.gov/content/pkg/GAOREPORTS-T-GGD-95-140/html/GAOREPORTS-T-GGD-95-140.htm GAO/T-GGD-95-140 https://www.govinfo.gov/app/details/GAOREPORTS-T-GGD-95-140 Testimony GAO/T-GGD-95-140; Tax Policy: Information on the Research Tax Credit; Tax credit Tax administration Research and development costs Fiscal policies Corporations Taxpayers Cost effectiveness analysis Eligibility criteria Research and development Manufacturing industry Research Tax Credit