Since the U.S. business tax credit for research and development (R&D) was enacted in 1981, U.S. innovators have had to wait 15 times for it to be extended. That’s 15 times that progress was slowed, new ideas were stifled and unknown innovations remained just that – unknown.
But, thanks to a measure approved last week by the U.S. House of Representatives Committee on Ways and Means, Congress has an opportunity to bring this cycle of uncertainty to an end. The American Research and Competitiveness Act of 2014 would expand and make permanent the R&D tax credit that encourages companies to invest here in the United States, pursue new technologies and hire the innovators of tomorrow.
The future of American innovation and global competitiveness depends on permanent patriotic commitment to scientific research and technological development. Supportive government policies and national investment like the R&D tax credit help U.S. companies take risks, explore uncharted territory and invest in technologies that are often many years in the making. In a time when countries around the world are fighting to attract high-tech investment, this encourages businesses to keep jobs and capital in America, rather than invest abroad.
While we can’t always predict the incredible advances that will take shape in labs and on factory floors in the years ahead, we can see their tangible impact today. Investment in R&D creates opportunities for students and generates high wage research jobs, leading to unimaginable inventions and breakthroughs that bolster the U.S. economy and support a strong, sustained high tech manufacturing sector.
By expanding and making this credit permanent, Congress can help secure America’s future technological development and economic growth today, rather than waiting for partisan debate that puts this critical investment in jeopardy year after year.
The value of long-term investment in innovation cannot be underestimated. Three quarters of Intel’s advanced manufacturing and R&D is done in the United States, while more than three quarters of our revenue is generated overseas. This investment fuels our relentless pursuit of computing innovation and supports U.S. economic growth.
Intel applauds the work of the House Ways and Means Committee to expand and make permanent the U.S. R&D tax credit. I urge the full U.S. House of Representatives and Senate to pass the American Research and Competitiveness Act of 2014 and invest in America’s future.
Cleveland is Vice President of Global Public Policy at Intel