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Cut to Invest: Make the Research and Experimentation Tax Credit Permanent

Mark Muro and Jessica Lee

A simplified and more robust Research and Experimentation (R&E) Tax Credit should be permanently authorized in order to encourage research and development investment by both domestic and foreign-owned firms located in the United States. A permanent R&E Tax Credit will bolster innovation-related investment and activity in U.S. metropolitan areas, foster prosperity, and improve the nation’s standing in the global economy.

Along these lines, extending and expanding the credit would:

As these positive effects suggest, a permanent expansion of the R&E Tax Credit would work to enhance the nation’s standing in the global economy both now and in the decades ahead.

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