TAX NEWS - June 2010

Illinois governor signs extension of tax credit for research and development costs

SPRINGFIELD, Illinois -- Illinois is extending an income tax credit meant to encourage research and development.

Supporters say it will help the economy by helping businesses spend money on research in Illinois.

The credit had expired after 2009. A law that Gov. Pat Quinn signed Wednesday will let businesses claim the credit for 2010.

A tax credit reduces the amount of money owed to government. In this case, businesses can cut their tax bills by 6.5 percent of whatever they spend on certain research and development costs.

Illinois government says 38 states offer some kind of R&D tax credit.