October 3, 2008 the President signed the Emergency Economic Stabilization Act of 2008 and passed an act extending the R&D tax credit until December 31, 2009. After allowing the credit to expire 13 times in the past 25 years (most recently on December 31, 2007) this is a relief for many companies who depend on the credit and lobbying groups such as the R&D Credit Coalition. For the 2009 tax year, the Act also increases the Alternative Simplified Credit from 12% to 14% and repeals the Alternative Incremental Research Credit. The US currently ranks 17 out of 30 countries in the Organization for Economic Co-operation and Development in offering R&D tax credits. The credit still needs to be made permanent for the US to remain competitive worldwide.

• Myles Braithwaite's blog