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R&D Tax Credit in Limbo
USA Today reports the R&D tax credit has not been renewed since it expired end of 2007 and people in tech are getting "edgy"
When the average technology company spends a shamefully low 5% of revenue in R&D (higher in hardware and software, much lower in outsourcing and telecom) and 3 to 5X that in SG&A why are we getting so edgy?
If I was a Congressman, I would attach some conditions to the credit:
a) Higher credits based on proportion of R&D to revenues
b) Credits inverse to the ratio of the company's R&D to SG&A spend
Let's give incentives to companies that are truly innovating via R&D not those that spray paint R&D and spend mountains of marketing cash to push their products along.
July 25, 2008 in Industry Commentary | Permalink