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Permanent R&D Creates Jobs, Economic Growth

May 08, 2014

As the House prepares to consider making the research and development tax credit permanent, the non-partisan analysis of the Joint Committee on Taxation confirms that the bill could increase the amount of research and development American companies undertake by 10 percent.  Associations that represent tens of thousands of businesses small and large strongly agree that the R&D credit helps create jobs and economic growth.

National Association of Manufacturers: “Research and development (R&D) is the lifeblood of manufacturing, driving growth through increased productivity and product development….A strong and permanent R&D incentive will allow the United States to remain competitive in the global race for R&D investment dollars and a leader in global innovation.”

R&D Credit Coalition:  “The certainty of a strengthened, permanent credit is critical to maintaining U.S. leadership in advanced research and encouraging companies to spend R&D funds and create jobs in the U.S.”

Business Roundtable:  “Making [R&D] permanent will maximize its long-term effectiveness, encourage investment decisions, and formally adopt a policy that in reality is already part of established tax law.”

Biotechnology Industry Organization (BIO): “The R&D Credit is a vitally important incentive that spurs private-sector funding of the search for new cures and treatments in America.  The R&D Credit is pro-innovation, pro-growth, and pro-America…[m]aking the Credit permanent would recognize its vital role in supporting America’s innovation economy while providing certainty for businesses working toward the next generation of medical breakthroughs.”

U.S. Chamber of Commerce: “R&D plays an essential role in almost every facet of the United States economy; it is vital that Congress incentivize R&D investment within American borders to increase American global competitiveness in attracting capital investment and to create American jobs.”

Financial Executives International: “A robust and permanent R&D tax credit is critical to competitiveness, innovation, and U.S. jobs.”

Healthcare Leadership Council: “We applaud you and the bipartisan group that introduced this legislation for taking action that will protect jobs in the United States and support the development of lifesaving treatment for patients…. A strengthened and permanent R&D tax credit is important in allowing the healthcare community to move forward in finding new and innovative treatments that will improve patient lives.”

Information Technology Industry Council: “We believe this legislation represents a positive step forward in modernizing our tax code, increasing the competitiveness of the American economy and its businesses, and delivering a boost to American job creation efforts.  Previous research shows that the policies embodied in H.R. 4438 would increase annual GDP growth by $66 billion and create at least 162,000 jobs in the tech sector alone.”

Intel: “Supportive government policies and national investment like the R&D tax credit help U.S. companies take risks, explore uncharted territory and invest in technologies that are often many years in the making. In a time when countries around the world are fighting to attract high-tech investment, this encourages businesses to keep jobs and capital in America, rather than invest abroad.”