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TechAmerica: Stop playing political games with R&D tax credit
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03/01/10 12:52 PM ET
One of the biggest technology trade groups in town wants Congress to stop playing political games with the essential research and development tax credit.
The R&D tax credit expired at the end of 2009, causing the loss of 20,000 well-paying jobs, over $2.5 billion in economic gains and more than $2 billion in revenue for the treasury, TechAmerica estimates.
The extenders package under consideration this week in the Senate would extend the R&D credit for one year. But TechAmerica president and CEO Phil Bond says that doesn't cut it.
The House passed its own package of extenders last year.
“While our companies would be relieved if a one-year extension passed, the reality is that it would just be the same old vicious cycle," Bond said. "Companies couldn’t depend upon the credit when planning for this fiscal year, and they won’t be able to depend upon it while planning for next fiscal year, undermining the credit's value."
The R&D Credit Coalition, a group of manufacturers, scientists, engineers and drug makers, says 70 percent of the tax credit's benefits go toward paying the salaries involved in research and development work.
The credit has been allowed to lapse 14 times since 1981.
"Congress is playing budgetary politics with a factor that must be beyond games--jos," Bond said.
The R&D tax credit expired at the end of 2009, causing the loss of 20,000 well-paying jobs, over $2.5 billion in economic gains and more than $2 billion in revenue for the treasury, TechAmerica estimates.
The extenders package under consideration this week in the Senate would extend the R&D credit for one year. But TechAmerica president and CEO Phil Bond says that doesn't cut it.
The House passed its own package of extenders last year.
“While our companies would be relieved if a one-year extension passed, the reality is that it would just be the same old vicious cycle," Bond said. "Companies couldn’t depend upon the credit when planning for this fiscal year, and they won’t be able to depend upon it while planning for next fiscal year, undermining the credit's value."
The R&D Credit Coalition, a group of manufacturers, scientists, engineers and drug makers, says 70 percent of the tax credit's benefits go toward paying the salaries involved in research and development work.
The credit has been allowed to lapse 14 times since 1981.
"Congress is playing budgetary politics with a factor that must be beyond games--jos," Bond said.
TechAmerica last week urged Senators not to pass the jobs bill in hopes that the R&D tax credit provision would still have a chance to be included. That lobbying effort failed, and the jobs bill passed without the R&D credit extender.
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