Hausner hopes to boost R&D spending by making it tax deductible

After spearheading the landmark bill on economic freedom, Economy and Labor Minister Jerzy Hausner is working on additional measures to make life easier for businesses, this time promoting spending on R&D. Current corporate income tax regulations are unfavorable for R&D activity, as investment outlays may only be deducted if they can be offset by future revenues, while returns on investments in new technologies are often uncertain. The new bill on supporting innovation is meant to change this, allowing companies to deduct all expenses on new technologies, including purchases of patents and licenses. Business organizations are very enthusiastic about these proposals. "This is a very good solution, because all spending on new technologies are sure to yield benefits for the company in the future," says Jeremi Mordasewicz from the Polish Confederation of Private Employers (PKPP). "These are good and sensible proposals," adds Zbigniew Żurek, president of the Business Centre Club (BCC). The government bill also proposes a preferential technology loan scheme, to be operated by Bank Gospodarstwa Krajowego (BGK). (Rzeczpospolita, p. B1) T.J.