A bipartisan group led by Reps. Kevin Brady (R-Texas) and Anna Eshoo (D-Calif.) have introduced the American Research and Competitiveness Act of 2011 to permanently expand and extend the Research and Development (R&D) Tax Credit.
Innovation is the engine of our U.S. economy, spawning new technologies and industries that lead to job creation. But it requires significant investment in research and product development to bring new technologies to market.
While the R&D Tax Credit has proven helpful to encourage business investment, its full effectiveness has been thwarted by the stop-start nature of its implementation. Dependence on annual renewal by Congress has led to lapses and uncertainty about its long-term viability. If businesses cannot count on the availability of the credit, they are unlikely to budget for it and commit as many resources to R&D as they could.
The introduction of today’s legislation is exactly what is needed to encourage more R&D investment and growth in job creating industries. If Congress is serious about economic recovery and job creation, this is an easy measure to support.