Today, President Bush signed the Tax Relief and Health Care Act of 2006. This bill, among other things, will allow companies to deduct money invested in research and development from their taxes.
"To keep America competitive in the world economy, we must make sure our people have the skills they need for the jobs of the 21st century," Bush said at the signing. "And to keep our nation leading the world in technology and innovation, we're extending and modernizing the research and development tax credit. By allowing businesses to deduct part of their R&D investments from their taxes, this bill will continue to encourage American companies to pursue innovative products, medicines, and technologies."
In addition to the tax deduction, the bill also extends the deductibility of tuition and higher education expenses "to help more Americans go to college so we can compete."