The Bright Spot in the Bailout Blues

The state of the economy over the last several weeks has been a serious concern to Democrats and Republicans, business owners and workers, retirees and students―in fact just about everyone. I won’t even hazard a guess whether last week’s multibillion-dollar bailout...err...recovery plan will take us, since Econ 101 does not qualify me as a monetary dilettante, let alone an expert. However, I just found out the bill has a shiny little nugget for a part of the food industry that’s near to my heart, R&D.

According to The Wall Street Journal’s Marketwatch: “The Federal Research & Development Tax Credit has been extended two years through December 31, 2009. As part of the extension, the Alternative Simplified Credit was increased from 12% to 14%. Additionally, the extension terminated the Alternative Incremental Credit.

“The federal R&D Credit continues to provide companies an opportunity to claim an income tax credit for activities centered on the development or improvement of products, processes, software, techniques or formulas. This credit generates significant tax savings for U.S. companies in the manufacturing, technology, software, engineering, aerospace/defense industries and other industries.”

So at least there’s an incentive to keep those R&D projects humming along. Sure, new food products aren’t as critical as something like energy independence. But, given that Campbell Soup Company was the only stock in the Standard & Poor's 500 index to increase in price during last Monday's Wall Street nosedive (although I think Steven Cobert might be disappointed when he sells his stock), we at least have a glimmer of optimism that the food industry might weather the storm better than others.

   –Lynn A. Kuntz