IPC – Association Connecting Electronics Industries and over 1,300 other companies and organizations recently sent a letter to all members of Congress urging them to enact legislation seamlessly extending Research and Development (R&D) tax credits through 2010 and for as long as possible. If the lame-duck Congress does not reinstate the expired R&D tax credit for 2010 before adjourning, companies will not be able to apply these essential credits when filing their 2010 tax returns. Many companies relied on R&D tax credits in their 2010 business plans and operations. If these tax credits are not available, many companies 2010 ledgers will be significantly altered. While permanently extending the R&D tax credit would be the best way to assist U.S. companies, IPC and fellow advocates insist that Congress should, at a minimum, enact legislation seamlessly and retroactively applying the R&D tax credit through 2010.
R&D tax credits are critical in enabling electronics companies to compete globally, thus allowing companies to continue providing high quality jobs in the U.S. The pace of technological advancements in the electronics industry is continuous and R&D is essential for companies to maintain the ability to produce state-of-the-art electronics products. U.S. businesses need R&D tax credits to compete globally, remain viable, and keep their staff employed.
The R&D tax credit expires frequently, discouraging companies from making long-term R&D investments. The R&D tax credit expired on December 31, 2009, the 14th time that Congress has allowed the R&D tax credit to lapse. Without a permanent R&D tax credit, U.S. companies cannot fully benefit from the R&D tax credits’ intent – encouraging long-term innovative efforts and investments on U.S. soil.
Throughout 2010 IPC has been urging members of Congress to enact legislation extending R&D tax credits as soon as possible. On October 7, letters from the IPC Government Relations (GR) Committee were delivered to all members of Congress urging lawmakers to enact legislation seamlessly extending R&D tax credits through 2010 and for as long as possible. IPC members also met with their elected officials, at events such as IPC Capitol Hill Day and at plant tours hosted at IPC member facilities, urging them to enact R&D tax credit legislation. In a November 16, 2010 letter to Congress, IPC joined forces with the R&D Credit Coalition, trade associations, companies and organizations collectively representing nearly all U.S. manufacturers to urge Congress to pass the extension of tax provisions including the R&D tax credit. IPC will continue to press for Congress to enact R&D tax credit legislation.
While IPC continues to support enactment of a permanent R&D tax credit, a seamless extension of R&D tax credits from 2009 would serve as an important patch until permanent R&D tax credit legislation is enacted into law. Congress’s enactment of a seamless extension of R&D tax credits is vital in supporting U.S. companies’ development of the technology they need to compete in the global economy.
For more information on how to get involved in asking your members of Congress to enact vital R&D tax credits please visit www.ipc.org/rd-credit-action or contact Ron Chamrin, IPC manager of government relations, at +1 703-522-0225 or email@example.com.