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Angie Drobnic Holan
By Angie Drobnic Holan January 12, 2011
Back to Make permanent the Research & Development tax credit

Tax compromise extends tax credits

President Barack Obama promised to make the research and development tax credit permanent, as well as the renewable energy production tax credit. He hasn't quite achieved that, but he did sign laws that extended the credits.

As we reported previously, the American Recovery and Reinvestment Act -- better known as the economic stimulus -- extended the energy credit through 2012.

In December 2010, Obama and Senate Republicans negotiated broad tax compromise legislation that extended most of the Bush-era tax cuts another two years. As part of that, the research and development tax credit was extended through the end of 2011.

This falls short of Obama's promise, but it does give him more time to negotiate permanent enactment. We leave the rating at In the Works.

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