R&E tax credit bill

Like the Bush Administration's recent budget proposal for FY 1990, Sen. Danforth's (R-Mo.) Research & Experimentation bill would make permanent the 20% research and experimentation and basic research tax credits which are scheduled to expire at the end of 1989. Introduced March 15, S 570 also would make changes in the structure of the credit to increase its incentive effect on R&E spending and would extend credit benefits to startup firms to encourage "all taxpayers" to increase R&E spending, according to Danforth. Bill was referred to the Senate Finance Committee; no action scheduled to date.