by CIO Staff

Tax Break for R&D Gains Traction

Nov 28, 20051 min

According to the Wall Street Journal, high-tech companies, manufacturers and pharmaceutical houses are making headway in their long-running effort to get Congress to enlarge the tax break.

The research and development tax credit is up for renewal, and a coalition backed by Microsoft, United Technologies, Electronic Data Systems and Guidant won a surprising victory this month when the expanded R&D credit was attached to a broader tax bill Congress expects to approve next month.

Still, it is unclear whether the expanded break will survive final negotiations between the House and Senate. The one-year cost for the expanded break, which would expire at the end of 2006, is estimated at $9.9 billion.

–David Rosenbaum