Issues Center > Index of Issues > Economy and Taxes
Research & Experimentation Tax Credit
Background
The research and experimentation (R&E) tax credit encourages technology-based companies to invest additional resources in the research, development, and testing of various products and services, which promotes both job creation and economic expansion. The credit, which has expired and been extended many times since its inception, was extended retroactively to July 1, 2004, and through December 31, 2005, by the Working Families Tax Relief Act of 2004 (Public Law 108-311).
U.S. Chamber Position
The U.S. Chamber believes that the R&E tax credit should be permanently extended and expanded. It provides an incentive for firms to invest more in research and experimentation on their goods and services.
Permanently extending the R&E tax credit, rather than temporarily renewing it during the political bargaining process, would provide businesses with continuity and certainty. A permanent credit would allow businesses to make long-range planning decisions, which are key in many fields in which years of research are necessary before a product can be brought to the market.
The U.S. Chamber will continue to support efforts to expand the R&E tax credit and make it a permanent part of the tax law.
Staff Contact Information
|
RSS Issue Feed