Congress has included an 18-month extension of the research and development (R&D) tax credit in the $146 billion tax package of individual, middle class and business tax breaks, HR.1308. The legislation now provides a seamless extension of the R&D tax credit, which had expired, from July 1, 2004, to January 1, 2006. The legislation passed the House by a vote of 339-65 and the Senate by a vote of 92-3.
Malcolm O'Hagan, president of the National Electrical Manufacturers Association (NEMA), said that NEMA was "pleased that both the House and Senate have passed the extension and thus ensured that there would be no disruptive gap in the law." NEMA, which worked with the R&D Credit Coalition to push the extension through Congress, believes the legislation will help industry continue to create high-paying jobs in the United States.
"Restoring and extending this important incentive," said O'Hagan, "will encourage companies to undertake necessary research in the United States rather than overseas. We will continue to work with the Congress and the administration to make this credit permanent and available to even more businesses involved in U.S.-based research."