State legislators are weighing expanding credits for research and development.

Current tax code allows corporations to take a credit of up to 20 percent of the increase in spending on research. The House Commerce Committee has approved legislation that would increase that credit to 24 percent.

The new bill would change the rules on high-dollar research spending as well.

Currently, when a company's research spending exceeds $2.5 million, it may receive $500,000 in tax credits, plus 11 percent of the excess.

If House Bill 2615 passes, the tax credits would expand to $750,000, plus 15 percent of the difference.

Donna Kent, president and chief executive of the Arizona Technology Council, told Capitol Media Services that the legislation would ultimately help the state's economy.

"It builds our economy and allows for new jobs," said Kent. "It also gives us an opportunity to grow the jobs associated with that research."

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For more information:

"State may boost research tax credit," Arizona Republic, 02/15/2007