R&D Tax Credit extended through 2009

The U.S. Congress has passed the Emergency Economic Stabilization Act of 2008 (EESA). As part of the ESSA, the R&D Tax Credit (Research Credit) was extended through 2009. This means it will apply to tax years 2008 and 2009.

The R&D Tax Credit drives billions of dollars in economic activity and keeps thousands of high-skilled jobs here in the U.S. The R&D Tax Credit had expired at the end of 2007 and had failed several times previously to be passed as parts of other bills in Congress.

Within the R&D Tax Credit, the Alternative Simplified Credit has been increased from 12% to 14% for tax year 2008. This is a significant change.