Obama May Seek Permanent R&D Credit

President Obama

President Barack Obama may include a permanent extension of the research and development tax credit among the tax breaks for businesses he is contemplating to spur job growth, two congressional aides said. The White House also has been considering payroll tax relief to encourage new hiring, more tax breaks for small businesses and new infrastructure spending, according to people familiar with the discussions who spoke on condition of anonymity because the discussions are preliminary. Obama’s spokesman, Robert Gibbs, said no decisions have been made. The administration’s economic team is reviewing “targeted” measures to boost economic growth and hiring that won’t be at the same scale as the $814 billion stimulus legislation approved last year, he said yesterday. A permanent extension of the research and development tax credit would cost $70.5 billion over the next 10 years, according to the president’s 2011 budget proposal. Read more here:

Obama May Seek Permanent R&D Credit