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Article: An investment tax credit for investing in new technology: A survey of California firms
- Article from:
- Engineering Economist
- Article date:
- July 1, 1997
- Author:
CopyrightCopyright Institute of Industrial Engineers Summer 1997. Provided by ProQuest LLC. (Hide copyright information)
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ABSTRACT
This study examines the potential impact of a hypothetical 12 percent investment tax credit on new capital investments that require the introduction of new technology. Firms showed some support for this type of a tax credit. However, the purpose of giving a tax credit for investing in new technology is not simply to give a tax "break" to businesses. The underlying objective is to increase hiring, thereby stimulating employment. This research strongly suggests that this will not happen. The results cast a shadow on the impact of all new technology investments on job creation.
INTRODUCTION
The California legislature has proposed various pieces of legislation in order to stimulate ...