Washington, DC – TechAmerica today called upon Congress to pass a package extending various tax provisions including rates established during the last administration and incentives for business investments.
"This package is a strong step toward greater certainty in the midst of a very foggy recovery, and we strongly urge passage. Today’s economic climate represents the worst time to raise taxes on anyone, particularly the many American entrepreneurs owning small businesses."
"The extension of the R&D tax credit in this package is nearly a full year overdue and would allow technology companies to commit to new and expanded innovation programs on U.S. shores, which means creating and sustaining hundreds of thousands of well-paying American jobs. That said, a permanent, strengthened incentive remains badly needed if the Unites States is to improve its mediocre standing in the ranks of national R&D incentives offered by global competitors. Allowing businesses to write-off investments next year is a strong, short-term incentive that will bolster the recovery."
In a press release last week, TechAmerica reported that the expiration of the R&D tax credit has left the U.S. off the worldwide list of the strongest national R&D tax incentives. Even if the credit is extended, the Association reported that the country still would rank a mediocre 17th.
The Association estimates the approximately 113,000 well-paying jobs have been placed at risk since the credit was allowed to expire nearly a year ago.