The fiscal cliff deal passed by the House late last night (HR 8) includes a one-year extension of the Research and Development (R&D) tax credit, which allows companies to recoup their investments on new product development in hopes of spurring innovation and economic growth. Here's a link to the bill text, which refers to the provision as the Research Credit. The news is welcome for companies that invest heavily in science and technology, including most of the major players in Silicon Valley. But expect the tech sector to keep pushing for the permanent extension of the R&D tax credit, which has been a priority for years.
The NASDAQ is up big today on news of the deal, as is much of the broader stock market. While the fiscal cliff package only delays the effects of sequestration a few weeks, businesses are clearly welcoming the certainty regarding tax increases provided by the package. This fact sheet has more details on the agreement; we'll bring you further coverage when the Morning Take resumes publication on Thursday, January 3rd.