WASHINGTON, D.C., February 18, 2004 – Noting the critical importance of R&D to the U.S. economy, a group of 413 companies and 90 trade associations, representing virtually every research-intensive industry in the United States, have called on Congress to act quickly on legislation to make the R&D tax credit permanent with necessary modifications to expand its incentive effects.
In a February 9th letter, members of the R&D Credit Coalition asked the Chairmen and Ranking Democrats on the House Ways and Means and Senate Finance Committees to make R&D credit bills (H.R. 463 and S. 664) early legislative priorities of the tax-writing committees. The R&D tax credit will expire on June 30, 2004, unless the Congress acts to extend and strengthen it.
“The technological innovations made possible by the R&D credit enable companies to bring more products and services to market, increase employment, and raise the standard of living for all Americans,” states the letter. “ R&D helps manufacturers and services companies with U.S. operations maintain a competitive edge over lower-cost foreign competitors. It allows a small, medium or large company to reduce its financial risk in expensive, labor-intensive R&D investments.”
The companies and trade associations signing this letter strongly agree on the need for Congress to act quickly and provide stability to companies that undertake research activities in the United States and ensure that all companies performing intensive research are able to benefit from the credit.