This study examines the potential impact of a hypothetical 12 percent investment tax credit on new capital investments that require the introduction of new technology. Firms showed some support for this type of a tax credit. However, the purpose of giving a tax credit for investing in new technology is not simply to give a tax“break”to businesses. The underlying objective is to increase hiring, thereby stimulating employment. This research strongly suggests that this will not happen. The results cast a shadow on the impact of all new technology investments on job creation.