NAM presses for R&D credit extension

With just a few days remaining before the 109th Congress shuts down for the holidays, NAM president John Engler urged it to extend and strengthen the research and development tax credit.

“In a spirit of bipartisanship, Congress should send President Bush a bill ASAP that will revive the dead credit,” he said

The effort to encourage more private R&D activity in the United States has long-enjoyed strong bipartisan and bicameral support.

“With the 109th Congress about to close up shop, it is imperative that lawmakers end the current tax on innovation that’s been imposed on companies since the R&D credit expired more than 11 months ago,” he said.

Manufacturers serve as the primary source for innovation in the U.S., Engler said. They perform the bulk of private sector R&D, processes that are essential for new products to be developed and productivity to increase.

“The United States’ global leadership in innovation is clearly threatened by fierce competition from the permanent and more generous R&D tax incentives offered by other countries,” Engler continued.

“Many companies have been investing in R&D under the assumption that Congress would make good on its promise to renew this proven tax incentive,” he said.

For more information about the impact of the R&D Credit on manufacturers, visit www.nam.org/R&DManuFacts .

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