Incremental Research and Development Tax Credits

question 13

Multiple Choice

Incremental research and development tax credits

• A) allow firms to reduce the after-tax cost of their research and development activities.
• B) fund federal government insurance on a portion of research and development costs.
• C) generate revenues to subsidize government laboratories for research and development.
• D) are designed to reduce the amount of government regulatory restraints that limit innovation.
• E) fund a government prize for important industrial innovations.

---

Definitions:

Future Owner

An individual or entity that is designated or expected to become the owner of an asset or property at a future date.

Repairs

The process of fixing or restoring something that is broken, damaged, or malfunctioning to a good condition.

Public Easement

A legal right granted to the public to use a specific parcel of land for a designated purpose, such as a pathway or utility line.

Fee Owner

The individual or entity that holds full ownership rights of a property, including the ability to use, sell, or lease it.