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knited Stalne

RESEARCH AND EXPERIMENTATION TAX CREDIT

HEARINGS

BEFORE THE

SUBCOMMITTEE ON OVERSIGHT

OF THE

COMMITTEE ON WAYS AND MEANS

HOUSE OF REPRESENTATIVES

NINETY-EIGHTH CONGRESS

SECOND SESSION

AUGUST 2 AND 3, 1984

Serial No. 98-102

Printed for the use of the Committee on Ways and Means

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U.S. GOVERNMENT PRINTING OFFICE

40-356 O

WASHINGTON : 1985

KF27

.W345 1984d

BARBER B. CONABLE, JR., New York
JOHN J. DUNCAN, Tennessee
BILL ARCHER, Texas

GUY VANDER JAGT, Michigan
PHILIP M. CRANE, Illinois
BILL FRENZEL, Minnesota

JAMES G. MARTIN, North Carolina
RICHARD T. SCHULZE, Pennsylvania
BILL GRADISON, Ohio

W. HENSON MOORE, Louisiana
CARROLL A. CAMPBELL, JR.,

South Carolina

WILLIAM M. THOMAS, California

JAMES G. MARTIN, North Carolina

JOHN J. DUNCAN, Tennessee

CARROLL A. CAMPBELL, JR.,

South Carolina

WILLIAM M. THOMAS, California

(II)

COMMITTEE ON WAYS AND MEANS

DAN ROSTENKOWSKI, Illinois, Chairman

SAM M. GIBBONS, Florida

J.J. PICKLE, Texas

CHARLES B. RANGEL, New York
FORTNEY H. (PETE) STARK, California

JAMES R. JONES, Oklahoma
ANDY JACOBS, JR., Indiana
HAROLD FORD, Tennessee
ED JENKINS, Georgia

RICHARD A. GEPHARDT, Missouri
THOMAS J. DOWNEY, New York

CECIL (CEC) HEFTEL, Hawaii
WYCHE FOWLER, JR., Georgia
FRANK J. GUARINI, New Jersey

JAMES M. SHANNON, Massachusetts
MARTY RUSSO, Illinois

DON J. PEASE, Ohio

KENT HANCE, Texas

ROBERT T. MATSUI, California

BERYL ANTHONY, JR., Arkansas
RONNIE G. FLIPPO, Alabama

BYRON L. DORGAN, North Dakota
BARBARA B. KENNELLY, Connecticut

JOHN J. SALMON, Chief Counsel

JOSEPH K. DOWLEY, Assistant Chief Counsel
ROBERT J. LEONARD, Chief Tax Counsel
A.L. SINGLETON, Minority Chief of Staff

SUBCOMMITTEE ON OVERSIGHT

CHARLES B. RANGEL, New York, Chairman

SAM M. GIBBONS, Florida
J.J. PICKLE, Texas

FRANK J. GUARINI, New Jersey
BERYL ANTHONY, JR., Arkansas
RONNIE G. FLIPPO, Alabama
BYRON L. DORGAN, North Dakota

WILLIAM A. KIRK, Professional Staff
WENDELL E. PRIMUS, Professional Staff

BETH K. KUNTZ, Professional Staff RUSSLYN L. GURITZ, Professional Staff ROSINA BARKER, Professional Staff

85-6019-3

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CONTENTS

Page

1

55

Press releases announcing the hearings.......

WITNESSES
Congressional Budget Office, Hon. Rudolph G. Penner, Director ..
Department of the Treasury, Ronald A. Pearlman, Acting Assistant Secretary

for Tax Policy.....
National Science Foundation, Dr. Richard S. Nicholson, Acting Deputy Direc-

tor .....
U.S. General Accounting Office, Johnny C. Finch, Senior Associate Director,

General Government Division, John Gunner, Group Director, and Tom
Wolters, Senior Evaluator.

25

64

11

Acme-Cleveland Corp., W. Paul Cooper...

AGS Computers, Inc., Lawrence J. Schoenberg,

American Electronics Association, Joseph A. Saloom

American Enterprise Institute for Public Policy Research, Kenneth M.

Brown..

American Psychological Association, Alan G. Kraut..

American Society for Engineering Education, Stephen Kahne.

American Telephone & Telegraph Co., Ian M. Ross

Apple Computer, Inc., Michael D. Rashkin and Charles M. Cooke...

Association for the Advancement of Psychology, Alan G. Kraut..

Association of American Universities, Steven Č. Beering, M.D

Association of Data Processing Service Organizations, Inc., Lawrence J.

Schoenberg

AT&T Bell Laboratories, Ian M. Ross..

Beering, Steven C., M.D., Association of American Universities, and National

Association of State Universities and Land-Grant Colleges

Braverman, David J., McGraw-Hill Economics.......

Brown, Kenneth M., American Enterprise Institute for Public Policy Re-

search.

Bryan, L. Thomas, Jr., New England Council, Inc.

Chamber of Commerce of the United States, C. William Schick.

Commtech International, Martin Knestrick....

Computer & Business Equipment Manufacturers Association, John A. Young..

Cooke, Charles M., Apple Computer, Inc...

Cooper, W. Paul, Acme-Cleveland Corp., and National Machine Tool Builders'

Association....

Cordes, Joseph J., George Washington University.

DeConcini, Hon. Dennis, a U.S. Senator from the State of Arizona.

Deloitte Haskins & Sells, James D. Mungovan...

Dukakis, Hon. Michael S. (See, Massachusetts, Commonwealth of.)

Eisner, Robert, Northwestern University

Electronic Industries Association, Peter F. McCloskey and Richard F. Irwin.....

Federation of Behavioral, Psychological, and Cognitive Sciences, Alan G.

Kraut

Gould Inc., Michael I. Miller

Halpern, James S., Baker & Hostetler, Washington, DC.

Hewlett-Packard Co., John A. Young.

Hickey, John T., Motorola, Inc., and Semiconductor Industry Association.

International Business Machines Corp., Allen J. Krowe..

International Telephone & Telegraph Corp., Richard F. Irwin

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