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124937 1 (1984-08-02)

handle is hein.gao/gaobactir0001 and id is 1 raw text is: 

UNITED STATES GENERAL ACCOUNTING OFFICE

        WASUIINGTON D.C. 20548


FOR RELEASE ON DELIVERY
Expected at 10:00 A.M. EDT
Thursday, August 2, 1984


                          STATEMENT OF

           JOHNNY C. FINCH, SENIOR ASSOCIATE DIRECTOR

                   GENERAL GOVERNMENT DIVISION

                           BEFORE THE

                    SUBCOMMITTEE ON OVERSIGHT

                    COMMITTEE ON WAYS AND MEANS

                    HOUSE OF REPRESENTATIVES

                             ON THE
                                                          124937
                  USE AND EFFECTIVENESS OF THE

                  RESEARCH AND EXPERIMENTATION

                           TAX CREDIT

Mr. Chairman and Members of the Subcommittee:

     We are pleased to be here today to assist the Subcommittee

in its inquiry into the use and effectiveness of the research

and experimentation tax credit.  The credit, which was enacted

as part of the Economic Recovery Tax Act of 1981, authorizes

certain taxpayers to reduce their income tax liabilities by a

percentage of the amount spent on qualified research and experi-

mentation.  Through this legislative provision, the Congress

sought to encourage business firms to perform the research and

experimentation necessary to increase the overall competitive

stance of the U.S. economy.  The tax credit is scheduled to

expire on December 31, 1985.
                               19 q 7


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