With the midnight June 30 expiration of the Research and Development Tax Credit looming, the Telecommunications Industry Association has expressed disappointment that the credit likely will not be strengthened or extended - permanently or temporarily - before the deadline.
The TIA argues that this credit is important for its 700 member companies, which manufacture or supply the products and services used in global communications.
While the House and Senate each recently approved tax bills that include an 18-month extension of the credit, final enactment into law has yet to occur.
"House and Senate agreement on an 18-month extension, at the very least, would provide a measure of confidence to the telecom manufacturing community, which greatly depends on this credit to keep research and development activities in the United States," says TIA President Matthew Flanigan. "We believe that final legislation should include the Senate-passed modifications that improve the incentive value of the credit. It is imperative that Congress act quickly to restore and strengthen this important tax credit."
The TIA argues that R&D credit benefits U.S. telecommunications equipment manufacturers and supports the contributions that technological advancement and innovation make to the U.S. economy. Technological innovations accounted for more than one-third of the nation's economic growth during the last decade and are critical to sustained growth in the future.
Flanigan says investment in research and development leads to technological innovations that create jobs at many skill levels, as well as increases in productivity, new products, economic growth and rising living standards for millions of Americans.
In the telecom sector, many manufacturers are concerned that there is not enough Federal support, funding or otherwise, for telecom research activities. TIA members want more incentives - both fiscal and policy - to keep their research activities in the United States in order to maintain U.S. competitiveness and technological prowess.
The TIA is based in Arlington, VA. For more information visit www.tiaonline.org.
