Senator: R&D credit key to boosting U.S. jobs, innovation

Renewal and strengthening of the expired research and development tax credit, “is critical to maintaining the United States’ role as the most innovative country in the world,” Republican senator Orrin Hatch said this week.
By Plant Engineering Staff April 18, 2008

Republican senator Orrin Hatch of Utah, a senior member of the Senate Finance Committee , told members of the National Association of Manufacturers this week that renewing and strengthening the expired research and development tax credit, “is critical to maintaining the United States’ role as the most innovative country in the world.”
Hatch is the sponsor of the Research Credit Improvement Act , S. 2209, which will strengthen and make permanent the R&D tax credit that expired at the end of 2007.
“Extending the research credit is an important step for the future economic growth of the United States,” Hatch said when introducing the legislation. “Utah is a prime example of how state economies benefit from the research credit. Utah is home to various firms that invest a high percentage of their revenue in R&D.” In 2005, Utah, with more than 1,200 firms participating, was among the top 20 states that reported firms doing R&D activity, according to a study by Ernst & Young .
“As the largest innovators in the United States, manufacturers claimed more than 70 percent of the R&D Credit in 2005,” said John Engler, NAM president and CEO. “R&D fuels the innovation that drives new product development and productivity gains %%MDASSML%% both essential for growth in the manufacturing sector.”