AeA Urges Congress to Pass Permanent R&D Tax Credit
Tax credit a critical component of U.S. competitiveness

Washington, DC (6/16/2005) - AeA, the nation’s largest trade association representing all segments of the high-tech industry, today urged Congress to pass a strengthened and permanent research and development (R&D) tax credit bill. 

“Continued growth of our economy is inextricably tied to the ability of companies to make a sustained commitment to long-term research,” said William T. Archey, President and CEO of AeA.  “It is important that Congress provide a proven incentive for U.S. companies to increase their investment in U.S.-based research and development. Doing so will encourage the further creation of jobs within the high-tech industry and lay a foundation for long-term economic expansion in the U.S.  This tax credit is a vital component in ensuring our Country’s competitiveness in the global economy.”

Specifically, AeA called on both the House and Senate to pass the Investment in America Act of 2005 (S. 627), introduced by Senators Orrin Hatch (R-UT) and Max Baucus (D-MT), and by Representatives Nancy Johnson (R-CT) and Ben Cardin (D-MD) in the House (H.R. 1736).  The legislation would make the tax credit permanent, increase the Alternative Incremental Credit (AIRC) rates, and provide an alternative simplified credit calculation for research expenses.

The temporary R&D tax credit, which has been extended twelve times since its inception in 1981, is set to expire on December 31, 2005. 

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About AeA
AeA, founded in 1943 by David Packard, is the largest high-tech trade association in the United States with nearly 3,000 companies, representing all segments of the industry and 1.8 million employees. Currently, AeA has 18 offices in and around the United States, as well as offices abroad in Brussels and Beijing. Our primary purpose is helping our members’ top and bottom lines by providing the following services: Access to Investors; State, Federal & International Lobbying; Insurance Services; Government Procurement; Business Networking; Foreign Market Access; Select Business Services; and Executive Education.

This page was last updated on 06/16/05.