Incremental research and development tax credits
A) allow firms to reduce the after-tax cost of their research and development activities.
B) fund federal government insurance on a portion of research and development costs.
C) generate revenues to subsidize government laboratories for research and development.
D) are designed to reduce the amount of government regulatory restraints that limit innovation.
E) fund a government prize for important industrial innovations.

Question

Quizplus · Accepted Answer

Incremental research and development tax credits provide firms with a tax credit that allows them to reduce the after-tax cost of their research and development activities. This encourages them to invest more in R&D and innovate, which ultimately benefits the economy as a whole.

Incremental Research and Development Tax Credits