THE WHITE HOUSE
Office of the Vice President
VICE PRESIDENT GORE ANNOUNCES EXTENSION OF RESEARCH TAX CREDIT: Creating New Jobs for the 21st Century by Investing in Research and Technology
January 29, 1998
In a world where imagination is only one small step ahead of reality, a relentless focus on the future -- and targeted investments in research and development -- are the best ways for America to succeed. The research and development tax cut means more high-wage jobs for the 21st Century.
Today, Vice President Gore announced that the Administration will propose extending the Research and Experimentation tax credit for one year, at a cost of $2.2 billion: The R&E credit is currently scheduled to expire on June 30, 1998; the Administration's proposal would extend it to June 30, 1999.
The R&E credit helps stimulate additional private sector investment in research and development: This incentive provides a 20 percent tax credit based on the increase in a firm's research and development.
The R&E credit encourages technological advancement, leads to higher productivity, and helps generate new American jobs:
Private sector R&D investment also leads to a better quality of life for all Americans: