Expensing of research and experimentation expenditures (normal tax method)
Research and experimentation (R&E) projects can be viewed as investments because, if successful, their benefits accrue for several years. It is often difficult, however, to identify whether a specific R&E project is successful and, if successful, what its expected life will be. Because of this ambiguity, the reference law baseline tax system would allow of expensing of R&E expenditures. In contrast, under the normal tax method, the expensing of R&E expenditures is viewed as a tax expenditure. The baseline assumed for the normal tax method is that all R&E expenditures are successful and have an expected life of five years.
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Summary by Fiscal Year ($ millions)
| |
2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 |
| Treasury |
5,180 | 3,820 | 3,560 | 800 | 3,060 | 5,070 | 6,190 | 6,910 |
| JCT |
3,200 | 3,100 | 4,400 | 4,200 | 4,000 | 5,000 | 6,100 | 7,000 |
Summary of Treasury Tax Expenditure Estimates by Report Year ($ millions)
Click the plus for source information and footnotes from original report.
|
Estimate Year |
|
2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 |
| Report Year |
|---|
| 2004 |
4,380 |
|
|
|
|
|
|
|
| Source: | This report year includes the following tax expenditure(s): Expensing of research and experimentation expenditures (normal tax method), from OMB. "Analytical Perspectives, Budget of the U.S. Government, Fiscal Year 2004." |
| 2005 |
6,360 |
5,570 |
|
|
|
|
|
|
| Source: | This report year includes the following tax expenditure(s): Expensing of research and experimentation expenditures (normal tax method), from OMB. "Analytical Perspectives, Budget of the U.S. Government, Fiscal Year 2005." |
| 2006 |
6,260 |
5,360 |
4,800 |
|
|
|
|
|
| Source: | This report year includes the following tax expenditure(s): Expensing of research and experimentation expenditures (normal tax method), from OMB. "Analytical Perspectives, Budget of the U.S. Government, Fiscal Year 2006." |
| 2007 |
6,260 |
5,360 |
4,800 |
4,840 |
|
|
|
|
| Source: | This report year includes the following tax expenditure(s): Expensing of research and experimentation expenditures (normal tax method), from OMB. "Analytical Perspectives, Budget of the U.S. Government, Fiscal Year 2007." |
| 2008 |
5,280 |
4,060 |
5,030 |
6,230 |
6,000 |
|
|
|
| Source: | This report year includes the following tax expenditure(s): Expensing of research and experimentation expenditures (normal tax method), from OMB. "Analytical Perspectives, Budget of the U.S. Government, Fiscal Year 2008." |
| 2009 |
4,720 |
4,990 |
4,470 |
4,320 |
4,400 |
4,420 |
|
|
| Source: | This report year includes the following tax expenditure(s): Expensing of research and experimentation expenditures (normal tax method), from OMB. "Analytical Perspectives, Budget of the U.S. Government, Fiscal Year 2009." |
| 2010 |
5,180 |
3,820 |
3,500 |
4,560 |
5,720 |
6,690 |
6,930 |
|
| Source: | This report year includes the following tax expenditure(s): Expensing of research and experimentation expenditures (normal tax method), from OMB. "Analytical Perspectives, Budget of the U.S. Government, Fiscal Year 2010." |
| 2011 |
|
3,820 |
3,500 |
4,560 |
5,720 |
6,690 |
6,930 |
7,710 |
| Source: | This report year includes the following tax expenditure(s): Expensing of research and experimentation expenditures (normal tax method), from OMB. "Analytical Perspectives, Budget of the U.S. Government, Fiscal Year 2011." |
| 2012 |
|
|
3,560 |
4,610 |
5,770 |
6,730 |
6,970 |
7,760 |
| Source: | This report year includes the following tax expenditure(s): Expensing of research and experimentation expenditures (normal tax method), from OMB. "Analytical Perspectives, Budget of the U.S. Government, Fiscal Year 2012." |
| 2013 |
|
|
|
800 |
3,060 |
5,070 |
6,190 |
6,910 |
| Source: | This report year includes the following tax expenditure(s): Expensing of research and experimentation expenditures (normal tax method), from OMB. "Analytical Perspectives, Budget of the U.S. Government, Fiscal Year 2013." |
Summary of JCT Tax Expenditure Estimates by Report Year ($ millions)
Click the plus for source information and footnotes from original report.
|
Estimate Year |
|
2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 |
| Report Year |
|---|
| 2006 |
7,000 |
|
|
|
|
|
|
|
| Source: | This report year includes the following tax expenditure(s): Expensing of research and experimental expenditures, from JCT. "JCS-8-03: Estimates Of Federal Tax Expenditures For Fiscal Years 2004-2008." |
| 2007 |
6,500 |
6,400 |
|
|
|
|
|
|
| Source: | This report year includes the following tax expenditure(s): Expensing of research and experimental expenditures, from JCT. "JCS-1-05: Estimates Of Federal Tax Expenditures For Fiscal Years 2005-2009." |
| 2008 |
5,600 |
6,100 |
5,900 |
|
|
|
|
|
| Source: | This report year includes the following tax expenditure(s): Expensing of research and experimental expenditures, from JCT. "JCS-2-06: Estimates Of Federal Tax Expenditures For Fiscal Years 2006-2010." |
| 2009 |
2,200* |
4,700 |
5,900 |
6,300 |
|
|
|
|
| Source: | This report year includes the following tax expenditure(s): Expensing of research and experimental expenditures, from JCT. "JCS-3-07: Estimates Of Federal Tax Expenditures For Fiscal Years 2007-2011." |
| 2010 |
3,200 |
4,900 |
5,700 |
6,800 |
8,000 |
|
|
|
| Source: | This report year includes the following tax expenditure(s): Expensing of research and experimental expenditures, from JCT. "JCS-2-08: Estimates Of Federal Tax Expenditures For Fiscal Years 2008-2012." |
| 2011 |
|
3,100 |
4,100 |
4,900 |
5,900 |
6,500 |
|
|
| Source: | This report year includes the following tax expenditure(s): Expensing of research and experimental expenditures, from JCT. "JCS-1-10: Estimates Of Federal Tax Expenditures For Fiscal Years 2009-2013." |
| 2012 |
|
|
4,400 |
4,300 |
4,500 |
5,900 |
7,000 |
|
| Source: | This report year includes the following tax expenditure(s): Expensing of research and experimental expenditures, from JCT. "JCS-3-10: Estimates Of Federal Tax Expenditures For Fiscal Years 2010-2014." |
| 2013 |
|
|
|
4,200 |
4,000 |
5,000 |
6,100 |
7,000 |
| Source: | This report year includes the following tax expenditure(s): Expensing of research and experimental expenditures, from JCT. "JCS-1-12: Estimates Of Federal Tax Expenditures For Fiscal Years 2011-2015." |
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Latest estimate, included in summary totals at top of page
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Previous estimate
* Contains tax expenditures estimated to be between -$50 million and $50 million. When aggregated, the sum of these estimates are unknown and thus are rounded to zero. For more information, see the methodology.
Report years, presented along the vertical axis (varying down the rows), correspond to the year of the budget document in which the estimates were obtained. Estimate years, presented along the horizontal axis (varying across the columns), correspond to the years of estimates within a specific budget or document. All estimates are reported by fiscal year; Subsidyscope has not adjusted the estimates for inflation.
Description from Analytical Perspectives, Budget of the U.S. Government, Fiscal Year 2013.