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 2013 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Leaders Under 40 program features outstanding young people who are making a difference in manufacturing. View the 2013 Leaders here.
The new control room: It's got all the bells and whistles - and alarms, too; Remote maintenance; Specifying VFDs
2014 forecast issue: To serve and to manufacture - Veterans will bring skill and discipline to the plant floor if we can find a way to get them there.
2013 Top Plant: Lincoln Electric Company, Cleveland, Ohio
Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Plant Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.

Bring focus to PLC programming: 5 things to avoid in putting your system together; Managing the DCS upgrade; PLM upgrade: a step-by-step approach
Balancing the bagging triangle; PID tuning improves process efficiency; Standardizing control room HMIs
Commissioning electrical systems in mission critical facilities; Anticipating the Smart Grid; Mitigating arc flash hazards in medium-voltage switchgear; Comparing generator sizing software

Annual Salary Survey

Participate in the 2013 Salary Survey

In a year when manufacturing continued to lead the economic rebound, it makes sense that plant manager bonuses rebounded. Plant Engineering’s annual Salary Survey shows both wages and bonuses rose in 2012 after a retreat the year before.

Average salary across all job titles for plant floor management rose 3.5% to $95,446, and bonus compensation jumped to $15,162, a 4.2% increase from the 2010 level and double the 2011 total, which showed a sharp drop in bonus.

2012 Salary Survey Analysis

2012 Salary Survey Results

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.