Kerry Pledges $30B For Tech R&D, BroadbandKerry Pledges $30B For Tech R&D, Broadband

In a visit to Silicon Valley last week, Sen. John Kerry said he would spend $30 billion to pump up U.S. research and development of science and technology, including tax incentives to make broadband Internet access available across the United States. That could create more than a million new tech jobs, he said.

Speaking at San Jose State University, Kerry, the presumptive Democratic Party nominee for president, said if elected he would create tax incentives to encourage investment in small startup companies, extend a tax credit on new business R&D spending, and create incentives to bring broadband networks to rural areas and inner cities. Kerry also reaffirmed his commitment to fund stem-cell research and protect U.S. technology jobs, and he attacked President Bush for putting "ideology" before science. "We're not going to get very far with a leadership that slashes science and technology budgets," Kerry said. "At the dawn of the 21st century, the possibilities are limitless. But they won't just happen. We have to invest more in our people and their ideas."

Kerry said his investments would cost $30 billion in tax incentives and increased budgets for federal agencies that fund R&D in advanced manufacturing, nanotechnology, clean energy sources, biotechnology, and IT. Selling unused TV transmission spectrum after the country moves from analog to digital television could generate the money to pay for the plan, Kerry said. The candidate also picked up the endorsement of former Chrysler Corp. chairman Lee Iacocca, who campaigned for President Bush in 2000 and Ronald Reagan in the '80s.

Bush said again last week that he would make broadband access available nationwide by 2007, boosting applications such as telemedicine. The Bush campaign also issued a statement that said the president's technology plan will allocate spending for development of hydrogen fuel cells and nanotechnology.

A spokeswoman for chipmaker Intel says the company has been lobbying the Bush administration and Congress to increase government funding of basic technology research--not just of applied research and life sciences.

As president, Kerry said, he would eliminate taxes on capital gains from investments in small businesses held for at least five years, currently taxed at 14%; extend a 20% tax credit on annual increases in R&D spending; and eliminate tax advantages for companies that move jobs overseas. "Startups drive technology job creation," he said. "And they usually have big ideas, but small capital."

The plan would provide a 10% tax credit for investments in broadband Internet-access technology in rural areas and inner cities, and a 20% tax credit for investment in networks anywhere in the country that are 20% faster than today's. Kerry also proposed equipping emergency responders with broadband connections by the end of 2006.

High-speed Internet service to homes and small businesses grew 42% last year to 28.2 million lines, but the United States ranks 10th worldwide in broadband adoption. "If Bangalore in India can be completely wired, then so should all of America," Kerry said. The tax credits, which would cost $2 billion over five years, could expand the economy by $500 billion and create 1.2 million high-wage jobs, he said.

Kerry also said he would increase funding for the National Science Foundation, NASA, the National Institutes of Health, the Energy Department, and the National Institute of Standards and Technology, and devote more of defense R&D budgets to long-term research. Kerry reaffirmed his promise to support stem-cell research, which could help find cures for Alzheimer's and other diseases.

High-tech companies such as Intel have supported the sale of unused TV transmission spectrum for data transmission and other applications, but television broadcasters have opposed the move.