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Effects of the R and D tax credit on energy R and D expenditures: an econometric analysis

Technical Report ·
DOI:https://doi.org/10.2172/5986285· OSTI ID:5986285
Objective of the study was to estimate the effects on industrial energy research and development (R and D) expenditures of the R and D Tax Credit component of the Economic Recovery Tax Act of 1981. Two tasks were performed. The first task was to collect data on industrial R and D expenditures, sales, oil prices, and price deflators. The R and D expenditure data were obtained from the National Science Foundation; other data were collected from Commerce Department and Department of Energy publications. The second task was to perform an econometric analysis of the effects of the tax credit on industrial R and D expenditures. Equations relating: (1) total; and (2) energy-related R and D expenditures to sales, oil prices, and a variable representing the availability of the tax credit were estimated, using data for each of seven manufacturing industries and eleven years. The analysis showed that the tax credit caused real total industrial R and D expenditures to be 9.1% greater than they would have been without the credit, but caused real energy industrial R and D expenditures to be 13.8% less than they would have been without the tax credit.
Research Organization:
Pacific Northwest Labs., Richland, WA (USA)
DOE Contract Number:
AC06-76RL01830
OSTI ID:
5986285
Report Number(s):
PNL-5423; ON: DE85008477
Country of Publication:
United States
Language:
English