The gov't is still out the $1.2 Billion.
And I don't see any benefit.
The government pays tax credits to companies who invest in scientific research and experimental development too. For every dollar the government gives out, a dollar and seventeen pennies is created in economic activity. The government is trying to expand this program SRED, there's no cap on it. Why cap something that creates economic activity?
If you could put $1.20 in a machine and get $3.70 back...would you say there is no benefit?
You might not see the benefit...amazingly, but there is a benefit to the wider economy. If the government uses $1.2 billion to make $3.7 billion worth of GDP, that is a win, considering so much of what the government spends money on does not have an additive effect on the economy.