TIA president expresses disappointment in tax credit outcome
Jan. 6, 2006 - Matthew Flanigan says Congress should not have allowed research and development credit to expire.
Telecommunications Industry Association President Matthew Flanigan expressed disappointment today regarding Congress' failure to extend the research and development tax credit before the Dec. 31, 2005, expiration date.
"The fact that this credit has once again been allowed to expire is very unfortunate," says Flanigan. "This action reflects our government's lack of appreciation of the value of research and innovation.
"The credit was established in 1981 and has been extended 11 times," Flanigan continues. "It will not encourage innovation and domestic research if companies lack the confidence that the credit will continue to be available to them. Without this confidence, companies increasingly will be forced to look elsewhere to conduct their research."
Flanigan says the tax credit helps nearly 16,000 small, medium and large companies in every state, and each time the credit has been allowed to expire, the research costs for each of these companies have also risen. With more than 75% of credit dollars used to provide high-skilled, high-wage research and development jobs in America, the country's long-term competitiveness is at stake, he says.
Flanigan says the TIA believes it is time that Congress strengthens and makes the tax credit permanent.
The TIA is based in Arlington, VA. For more information visit www.tiaonline.org