Article: An investment tax credit for investing in new technology: a survey of California firms.

INTRODUCTION

The California legislature has proposed various pieces of legislation in order to stimulate investment in capital goods. For example, SB (Senate Bill) 57 and AB (Assembly Bill) 1292 proposed tax credits for research, development, and manufacturing equipment. AB 847 proposed a tax credit for research facilities. SB 45 presented legislation that conforms with the old federal ITC.

This paper, which is part of a larger study, analyzes the perceptions of firms with respect to a tax credit applied to investments in new technology by California firms. The analysis is based on a survey of 1,220 firms, with a 34.5 percent usable response rate. The survey ...

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