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Tax Policy: Additional Information on the Research Tax Credit

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Report Type Reports and Testimonies
Report Date May 10, 1995
Report No. T-GGD-95-161
Subject
Summary:

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.

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