USA goes other way on R&D credits!

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When the Finance Ministry rolled out the list of exemptions /deductions it wants to chop off from the Indian Income tax Act, the one item that received the most pushback was the weighted deduction on R&D. While the pharma industry is in panic mode, somehow hoping to save this tax break, Biocon CEO Kiran Mazumdar Shaw's tweet said it all - "proposed phasing out of weighted tax deduction for R&D will kill innovation n see flight of IP n R&D to overseas." 
  On the other hand we have the US Congress, which is on the verge of sealing a $650 bn tax cut package, with one of the prominent components of the seemingly bi-partisan Democrat & Republican deal being making 'permanent' the tax credit for corporate R&D programs.. something that the Repubiicans have wanted for long. This should give further ammunition to Indian pharma industry in its lobbying efforts... here is the Politico story on what is cooking in the US Congress - http://www.politico.com/story/2015/12/congress-on-verge-of-passing-major-tax-deal-216842