NAM HAILS EXTENSION OF R&D CREDIT
McGuire Says Measure Only Applies Domestically and Will Encourage Job Creation
WASHINGTON, D.C., September 24, 2004 – Explaining that sustained U.S. economic growth depends more than ever on the innovation derived from research and development, the National Association of Manufacturers today welcomed last night’s overwhelming passage in both the House and Senate of an extension of the critical R&D tax credit retroactive to its expiration last June.
“Our manufacturing sector accounts for roughly two-thirds of private sector R&D,” reported NAM Senior Director of Tax Policy Monica McGuire. “The R&D credit promotes R&D investments that, in turn, benefit our nation’s economy with the innovation and productivity they spawn. The credit is used by nearly 16,000 companies and applies only to R&D work performed in the U.S.
“Our U.S. economy and our manufacturing sector in particular have shown promising signs for several quarters, and it would have been a shame had Congress not managed to get this R&D extension done,” McGuire said, adding that the NAM is among the leaders of the R&D Credit Coalition which intends to continue pushing for enhancements to and permanent extension of the R&D credit.
Noting that the R&D credit has expired 11 times since its creation, McGuire said companies have found long-term R&D planning difficult. “Continued economic growth and job creation are inextricably linked to our commitment to long-term research here in the U.S. Manufacturers believe a strengthened and permanent R&D credit will encourage more American businesses to engage in crucial research while otherwise making the U.S. a more attractive place to do business,” she concluded.
NAM