The Telecommunications Industry Association is urging Congress to support legislation that extends and strengthens the research and development credit.
The credit is due to expire on June 30. The TIA is concerned that the communications industry, along with many others, will suffer if the credit is not extended immediately.
The 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. The TIA argues that 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 Americans.
"'Now, more than ever, it is critical that Congress demonstrate to the U.S. business community its commitment to keeping research and development here at home," says TIA President Matthew Flanigan. "The telecommunications industry is one that depends on long-term research to support its future, and we believe the credit is a key ingredient to our industry's success."
Congress has extended the R&D credit 10 times since its enactment in 1981, demonstrating that the credit is a powerful and effective incentive for U.S. employers to increase research spending. The TIA argues that Congress, with strong bipartisan support, should extend and strengthen the credit now by increasing the Alternative Incremental Research Credit rates and by providing an alternative simplified credit calculation to induce even more research-intensive businesses to undertake additional R&D spending. Flanigan says that doing so will signal that the R&D credit is a critical element of maintaining the nation's competitiveness and will support the companies that want to innovate for the future in the United States.
The TIA is based in Arlington, VA. For more information visit www.tiaonline.org.