AeA Calls Upon Congress to Extend the R&D Tax Credit

Washington, DC (December 5, 2007) – At a press conference held by the R&D Credit Coalition on Capitol Hill this morning, AeA urged Congress to extend the Research and Development (R&D) tax credit before its expiration on December 31, 2007.

Christopher Hansen, AeA’s President and CEO, spoke at the press conference about why it is critical that Congress enact a seamless, multi-year extension before the credit expires. He said, “This tax credit should really be called an investment, as R&D creates wealth, intellectual property, and high-paying jobs in the United States. The lack of a consistent U.S. R&D tax credit makes foreign incentives for R&D much more attractive to companies.

“While the U.S. has always maintained a competitive edge in innovation and technology, the global market for R&D is becoming more competitive as countries offer enticing packages for companies to conduct their R&D activities abroad. If the U.S. does not guarantee similar incentives, we will continue to see R&D activities, innovation, and jobs moving offshore. With the strong bipartisan support for the credit, we urge Congress to work together and act on this critical piece of business.”

On November 9, the U.S. House of Representatives passed H.R. 3996, the “Temporary Tax Relief Act of 2007”, by a vote of 216-193. This bill included a one-year extension of the R&D tax credit from January 1, 2008 through December 31, 2008.

In September 2006, AeA released the 10th edition of its ongoing Competitiveness Series. Entitled Strengthen the R&D Tax Credit and Make It Permanent, the report analyzes why the currently-expired U.S. R&D Tax Credit is so critical to American innovation and competitiveness. This report, as well as all installments of the AeA Competitiveness Series, can be downloaded for free at: www.aeanet.org/cs.

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About AeA
AeA, the nation’s largest technology trade association with 2,500 member companies representing all segments of the high-tech industry, is dedicated solely to helping our members’ top line and bottom line. We do this in partnership with our small, medium, and large member companies by lobbying governments at the state, federal, and international levels, providing access to capital and business opportunities, and offering select business services and networking programs. For more information, please visit www.aeanet.org.

This page was last updated on 12/05/07.