[quote=pri_dk]Car, those (ridiculously long) posts are referring to University research.
None of this money goes to any corporations. Sure, some corporations benefit from the science, but – except for a handful of small programs (e.g. Solyndra) – there are NO significant direct financial payments from the government to corporations for their R&D or capital investments.
“Do some more research,” and find us some corporate financial statements of local technology companies (publicly available balance sheets & income statements) that show any substantial entries of the form “payment from government.”
Good luck.[/quote]
But, since you asked (and I believe this is NOT included in the spending numbers I posted above):
Research & Development Credit:
Frequently Asked Questions
What is California’s Research & Development (R&D) Credit?
The California R&D Credit reduces income or franchise tax. You qualify for the credit if you paid or incurred qualified
research expenses while conducting qualified research in California. You receive 15 percent of the excess of current
year research expenditures over a computed base amount (minimum of 50 percent of current year research
expenses). You claim the credit on the return for the taxable year you incurred the qualified expenses.
Section 41 allows taxpayers a credit against tax for increasing research activities. Generally, the credit is an incremental credit equal to the sum of 20 percent of the excess (if any) of the taxpayer’s qualified research expenses (“QREs”) for the taxable year over the base amount, and 20 percent of the taxpayer’s basic research payments.
The research credit provisions originally appeared in section 44F of the Internal Revenue Code of 1954, as added to the 1954 Code by section 221 of the Economic Recovery Tax Act of 1981. Section 471(c) of the Tax Reform Act of 1984 redesignated section 44F as section 30. Section 231 of the Tax Reform Act of 1986 redesignated section 30 as section 41 and substantially modified the research credit provisions. Congress revised the computation of the research credit in the Revenue Reconciliation Act of 1989.
The research credit was not in effect for the period July 1, 1995 through June 30, 1996. The Small Business Job Protection Act of 1996, P.L. 104 188, reinstated the research credit for the period from July 1, 1996 through May 31, 1997 (i.e., 11 months); thereafter the research credit was extended to June 30, 1998 and June 30, 1999 1). Under the Tax Relief Extension Act of 1999, P.L. 106 170, the research credit was extended to June 30, 2004.2 The Working Families Tax Relief Act of 2004, P.L. 108-311, further extended the research credit to December 31, 2005.
Commerce Clearing House (“CCH”), the Bureau of National Affairs (“BNA”), and the Research Institute of America (“RIA”) have published helpful materials on the research credit. These materials are available on Westlaw and/or LEXIS. 2004 Stand. Fed. Tax. Rep. (CCH); Cohen, 556 T.M., Research and Development Expenditures; 2004 U.S. Tax. Rep. (RIA).
