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The report estimates the employment impact of enhancing federal R&D tax incentives in the United States. The current tax incentives for R&D in the US are less generous than in comparable countries, and recent changes to federal tax law prevent firms from expensing the full value of investments in R&D in the first year. The report suggests that restoring full expensing would create 81,000 direct jobs nationally, doubling the tax credit rates would create 188,000 direct jobs, and enacting both policies would create 269,000 jobs. Congress should enhance federal R&D tax incentives by restoring full, first-year expensing of R&D expenditures and doubling the R&D credit rates. The report concludes that all states would see direct job creation, although some states would benefit more than others.
