Washington, D.C., -- The National Association of Manufacturers today announced the start of an intensive campaign to have the research and development tax credit -- scheduled to expire a year from today -- made permanent.
"The R&D tax credit has been renewed ten times since 1981, so obviously Congress recognizes its value in terms of jobs and economic growth," said NAM Senior Tax Policy Director Monica McGuire. "But it has been allowed to lapse enough times, usually for unrelated political reasons, that responsible companies cannot confidently assume it will always be there when planning and budgeting. Making the credit permanent would dramatically enhance its incentive value."
Joined by companies that rely on the credit, McGuire noted several of its key aspects:
More than 75% of R&D Credit dollars are used for salaries of employees associated with R&D work. To qualify for the credit, the work must be performed in the United States, thereby keeping high wage, high skilled jobs here at home.
With manufacturers performing more than 60% of all private R&D, the R&D credit is a proven incentive. R&D translates into innovation, spurring new products, increased productivity, and improved production processes.
The R&D Credit has long enjoyed bipartisan, bicameral support in the U.S. Congress.
Up to two-thirds of the growth in manufacturing and one-third of the growth in the economy are attributable to technological advances derived primarily from U.S.-based R&D.
Visit NAM's web site at www.nam.org for more information about legislative, policy and workplace developments affecting manufacturers, employees and the economy.