Do tax credits stimulate R&amp;D spending? The effect of the R&amp;D tax credit in its first decade

Rao, Nirupama

doi:10.1016/j.jpubeco.2016.05.003

Cited by 192 publications

(83 citation statements)

References 20 publications

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“…Endogeneity can be accounted for through the use of instrumental variable (IV) estimation. We follow Chang (2012) and Rao (2013) who use changes in tax policy to construct instruments for the public support variables.…”

Section: Estimation Proceduresmentioning

confidence: 99%

“…Regression results, with the total number of full time equivalent R&D employees as the dependent variable, are reported in table 2. As mentioned before, we follow Chang (2012) and Rao (2013) by using changes in the extent of partial exemption from advance payment to instrument for the public support variables. The regression includes the three inverse Mills ratios from the first step Multinomial logit estimation, to account for the self-selection of firms.…”

Section: Employment Effectmentioning

confidence: 99%

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Public Support for R&D and the Educational Mix of R&D Employees

Dumont

Spithoven

Teirlinck

2015

CESifo Economic Studies

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Section: Estimation Proceduresmentioning

confidence: 99%

Section: Employment Effectmentioning

confidence: 99%

Public Support for R&D and the Educational Mix of R&D Employees

Dumont

Spithoven

Teirlinck

2015

CESifo Economic Studies

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“…The largest challenge to escape the valley of death is the capital costs associated with PV industry-scaled RIE and ALD tools, which are both on the order of several million USD for a 1 GW PV plant. There are several methods that a government can utilize to effectively assist industry in this respect by providing business incentive policies including: R&D tax credits and writedowns by performing large scale research with novel production equipment [99][100][101], loans [102], guarantees/government managed risk [103], subsidies, and most radically purchase/donations (100% subsidies) [104]. In addition, these policies can be spread for example by including the R&D tax credits through multinational tax rules.…”

Section: Policies For Commercialization Supportmentioning

confidence: 99%

Economic Advantages of Dry-Etched Black Silicon in Passivated Emitter Rear Cell (PERC) Photovoltaic Manufacturing

et al. 2018

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Industrial Czochralski silicon (Cz-Si) photovoltaic (PV) efficiencies have routinely reached >20% with the passivated emitter rear cell (PERC) design. Nanostructuring silicon (black-Si) by dry-etching decreases surface reflectance, allows diamond saw wafering, enhances metal gettering, and may prevent power conversion efficiency degradation under light exposure. Black-Si allows a potential for >20% PERC cells using cheaper multicrystalline silicon (mc-Si) materials, although dry-etching is widely considered too expensive for industrial application. This study analyzes this economic potential by comparing costs of standard texturized Cz-Si and black mc-Si PERC cells. Manufacturing sequences are divided into steps, and costs per unit power are individually calculated for all different steps. Baseline costs for each step are calculated and a sensitivity analysis run for a theoretical 1 GW/year manufacturing plant, combining data from literature and industry. The results show an increase in the overall cell processing costs between 15.8% and 25.1% due to the combination of black-Si etching and passivation by double-sided atomic layer deposition. Despite this increase, the cost per unit power of the overall PERC cell drops by 10.8%. This is a significant cost saving and thus energy policies are reviewed to overcome challenges to accelerating deployment of black mc-Si PERC across the PV industry.

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“…An efficient business tax system will impose tax burdens that differ based on the nature of business activity, because activities are associated to differing degrees with socially beneficial or harmful spillovers, and generally differ in the extent to which they respond to taxation. For example, business R&D is commonly thought to stimulate economic productivity to a degree not entirely captured by firms doing the R&D, which is why governments encourage greater levels of R&D by offering R&D tax credits and immediate deductibility of 100 percent or more of R&D expenditures (Rao 2016). Analogously, efficient tax systems impose higher rates of taxation to discourage environmental pollution and other activities with negative externalities.…”

Section: The Structure Of Business Taxationmentioning

confidence: 99%

Business Tax Burdens and Tax Reform

Hines¹

2017

Brookings Papers on Economic Activity

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Tax reforms affect economic performance by changing incentives for business formation, expansion, and operation. The United States has the highest corporate tax rate among countries with advanced economies, and-despite offering significant additional deductions, exclusions, and tax credits-it imposes the heaviest tax burdens. This paper offers a new measure of corporate tax burdens based on information in tax expenditure budgets; this measure implies that the burden of U.S. corporate taxation in 2017 is equivalent to that produced by a corporate tax rate of between 31.7 and 34.8 percent, without additional deductions, exclusions, or tax credits. Efficient design of a business tax system encourages activities with beneficial economic spillovers and imposes lighter burdens on those industries and activities that are most responsive to taxation. Tax reforms have the potential to improve economic efficiency by adjusting the level and design of U.S. business taxes.

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Do tax credits stimulate R&D spending? The effect of the R&D tax credit in its first decade

Cited by 192 publications

References 20 publications

Public Support for R&D and the Educational Mix of R&D Employees

Public Support for R&D and the Educational Mix of R&D Employees

Economic Advantages of Dry-Etched Black Silicon in Passivated Emitter Rear Cell (PERC) Photovoltaic Manufacturing

Business Tax Burdens and Tax Reform

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