By Gautham Nagesh - 03/09/11 04:55 PM EST
“To keep from falling behind our global competitors and to make sure America is the first choice for R&D jobs we need to modernize the tax credit, strengthen it to encourage companies to make greater investment in research and jobs and make the credit permanent so businesses have the confidence to make long-term investment decisions here in the United States,” Brady said.
TechAmerica President and CEO Phil Bond said in a statement that current procedure of extending the credit on a temporary basis creates uncertainty and limits the amount firms are willing to invest in R&D. The group claims over 70 percent of the credit's benefits go to the salaries of American workers.
“The technology industry has long held that a stronger, permanent R&D credit quite simply equals more American jobs," Bond said.
"The on-again, off-again nature of the current credit doesn’t allow companies the opportunity to do the long term planning necessary to take full advantage of the credit. A permanent credit will better ensure a more robust economic recovery and spur high-tech job creation.”
Eshoo, whose district includes Silicon Valley, has been one of the strongest proponents of making the credit permanent. Last February she joined 120 lawmakers from both parties in pushing for its expansion.
“The R&D tax credit is a proven policy which encourages businesses to invest in new technologies that create jobs and shape tomorrow’s economy. For decades it has been essential for out-innovating and out-competing the rest of the world, but now other countries have caught up,” Eshoo said.