Congress extends R&D tax credit as part of bailout

The House of Representatives has voted to extend a research and development tax credit to US businesses as part of its approval of a giant bailout of the US mortgage industry. The bill included a two-year extension of a research and development tax credit for U.S. businesses that expired at the end of 2007. Several tech companies, including Microsoft and Texas Instruments, had called on Congress to extend the tax credit, saying it helps U.S. businesses invest in R&D and keeps R&D workers in the country. The R&D Tax Coalition, representing the tech, manufacturing, chemical, pharmaceutical, and other industries, praised Congress for extending the tax credit. Lawmakers have resisted making the tax break permanent largely because of its price tag of about $7 billion a year. Some critics have called the tax credit a government subsidy for large businesses.