Government policy: Trade group wants R&D tax credit restored

A coalition of trade associations is urging Congress to act quickly in restoring the federal Research & Development (R&D) Tax Credit that was allowed to expire at the end of last year. A group calling itself The R&D Credit Coalition is using an Ernst & Young study on the impact of the tax credit to bolster its argument for its restoration.

06/04/2008


A coalition of trade associations is urging Congress to act quickly in restoring the federal Research & Development (R&D) Tax Credit that was allowed to expire at the end of last year.
A group calling itself The R&D Credit Coalition is using an Ernst & Young study on the impact of the tax credit to bolster its argument for its restoration.
The R&D Tax Credit, initially enacted in 1981, was a temporary measure designed to spur economic growth in the early days of the Reagan Administration. It allowed companies to offset a certain amount the costs incurred pursuing discoveries that were technological in nature and intended to be used in the development or improvement of a product. In addition, to be eligible for the credit, the expenses had to relate to research conducted within the United States.
Senate Finance Chairman Max Baucus (D-MT) and Senate Finance Ranking Member Charles Grassley (R-IA) introduced a bill in early May—the Alternative Minimum Tax and Extenders Tax Relief Act of 2008—that would restore the credit.
The credit expired 12 previous times before last year, but each time it was quickly extended. And the R&D Tax Credit Coalition says the Ernst & Young study proves that trend should continue.
According to the study, the credit has spurred more than $ 6 billion in innovation-producing investments since its inception. Because those investments were for work performed in the U.S., the report says, they have funded high-wage jobs at more than 17,700 small and large companies in all 50 states.
“For 25 years, the R&D Credit has helped to foster the domestic growth of highly-skilled jobs,” says Monica McGuire, executive secretary of the R&D Credit Coalition. “The fact is that 70 percent of the benefit of this credit goes directly to pay American workers developing the products and markets of tomorrow. The expiration of this key tool for American job growth is universally felt.”
She added, "In this time of economic uncertainty, Congress should act now to seamlessly strengthen and restore the R&D Credit. Simply put, without this important incentive, our nation risks exporting high-skilled jobs to a wide range of countries all too willing to make up for our lack of R&D investment incentives.”
The R&D Tax Credit Coalition represents a number of industry trade groups, including the National Association of Manufacturers and associations representing the aerospace, agriculture, biotechnology, chemicals, electronics, energy, and information technology industries.
The Ernst & Young study, titled Supporting Innovation and Economic Growth is available at: www.investinamericasfuture.org/2008_study/





No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
2015 Top Plant: Phoenix Contact, Middletown, Pa.; 2015 Best Practices: Automation, Electrical Safety, Electrical Systems, Pneumatics, Material Handling, Mechanical Systems
A cool solution: Collaboration, chemistry leads to foundry coat product development; See the 2015 Product of the Year Finalists
Raising the standard: What's new with NFPA 70E; A global view of manufacturing; Maintenance data; Fit bearings properly
Special report: U.S. natural gas; LNG transport technologies evolve to meet market demand; Understanding new methane regulations; Predictive maintenance for gas pipeline compressors
Cyber security cost-efficient for industrial control systems; Extracting full value from operational data; Managing cyber security risks
Drilling for Big Data: Managing the flow of information; Big data drilldown series: Challenge and opportunity; OT to IT: Creating a circle of improvement; Industry loses best workers, again
Migrating industrial networks; Tracking HMI advances; Making the right automation changes
Understanding transfer switch operation; Coordinating protective devices; Analyzing NEC 2014 changes; Cooling data centers
Upgrading secondary control systems; Keeping enclosures conditioned; Diagnostics increase equipment uptime; Mechatronics simplifies machine design

Annual Salary Survey

After almost a decade of uncertainty, the confidence of plant floor managers is soaring. Even with a number of challenges and while implementing new technologies, there is a renewed sense of optimism among plant managers about their business and their future.

The respondents to the 2014 Plant Engineering Salary Survey come from throughout the U.S. and serve a variety of industries, but they are uniform in their optimism about manufacturing. This year’s survey found 79% consider manufacturing a secure career. That’s up from 75% in 2013 and significantly higher than the 63% figure when Plant Engineering first started asking that question a decade ago.

Read more: 2014 Salary Survey: Confidence rises amid the challenges

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role that compressed air plays in manufacturing plants.