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/





Top Plant
The Top Plant program honors outstanding manufacturing facilities in North America.
Product of the Year
The Product of the Year program recognizes products newly released in the manufacturing industries.
System Integrator of the Year
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
September 2018
2018 Engineering Leaders under 40, Women in Engineering, Six ways to reduce waste in manufacturing, and Four robot implementation challenges.
July/Aug
GAMS preview, 2018 Mid-Year Report, EAM and Safety
June 2018
2018 Lubrication Guide, Motor and maintenance management, Control system migration
August 2018
SCADA standardization, capital expenditures, data-driven drilling and execution
June 2018
Machine learning, produced water benefits, programming cavity pumps
April 2018
ROVs, rigs, and the real time; wellsite valve manifolds; AI on a chip; analytics use for pipelines
Spring 2018
Burners for heat-treating furnaces, CHP, dryers, gas humidification, and more
August 2018
Choosing an automation controller, Lean manufacturing
September 2018
Effective process analytics; Four reasons why LTE networks are not IIoT ready

Annual Salary Survey

After two years of economic concerns, manufacturing leaders once again have homed in on the single biggest issue facing their operations:

It's the workers—or more specifically, the lack of workers.

The 2017 Plant Engineering Salary Survey looks at not just what plant managers make, but what they think. As they look across their plants today, plant managers say they don’t have the operational depth to take on the new technologies and new challenges of global manufacturing.

Read more: 2017 Salary Survey

The Maintenance and Reliability Coach's blog
Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
One Voice for Manufacturing
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 Maintenance and Reliability Professionals Blog
The Society for Maintenance and Reliability Professionals an organization devoted...
Machine Safety
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
Research Analyst Blog
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Marshall on Maintenance
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
Lachance on CMMS
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
Material Handling
This digital report explains how everything from conveyors and robots to automatic picking systems and digital orders have evolved to keep pace with the speed of change in the supply chain.
Electrical Safety Update
This digital report explains how plant engineers need to take greater care when it comes to electrical safety incidents on the plant floor.
IIoT: Machines, Equipment, & Asset Management
Articles in this digital report highlight technologies that enable Industrial Internet of Things, IIoT-related products and strategies.
Randy Steele
Maintenance Manager; California Oils Corp.
Matthew J. Woo, PE, RCDD, LEED AP BD+C
Associate, Electrical Engineering; Wood Harbinger
Randy Oliver
Control Systems Engineer; Robert Bosch Corp.
Data Centers: Impacts of Climate and Cooling Technology
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
Safety First: Arc Flash 101
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
Critical Power: Hospital Electrical Systems
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
Design of Safe and Reliable Hydraulic Systems for Subsea Applications
This eGuide explains how the operation of hydraulic systems for subsea applications requires the user to consider additional aspects because of the unique conditions that apply to the setting
click me