ARLINGTON, Va., Oct. 4 /PRNewswire/ -- The Electronic Industries Alliance
(EIA) commended Congress and the Bush Administration for legislation signed
into law today that will extend the federal research & development (R&D) tax
credit through Dec. 31, 2005. The credit, which expired on June 30, will be
extended seamlessly beginning July 1, 2004.
"By extending the R&D tax credit, Congress and the Bush Administration
will help the U.S. generate more economic activity that is essential to high-
tech and help us compete with other innovation-driven nations," EIA President
Dave McCurdy said. "The R&D tax credit can encourage more investment, more
research and more economic growth for U.S. high-tech companies in the months
to come. Our 2,500 member companies believe this kind of government action
can be an effective incentive for increased R&D spending. The credit creates
a more competitive and business-friendly environment for high-tech here by
lowering the cost of high-risk research, which in turn helps keep investment
dollars in the U.S."
Earlier this year, EIA published The Technology Industry at an Innovation
Crossroads, a policy playbook on innovation that included recommendations to
strengthen the U.S. knowledge economy (available at
http://www.eia.org/innovation). Among those recommendations were several
focusing on ways to improve R&D investment in the U.S. As part of its
recommendations, EIA proposed that U.S. policymakers make the R&D tax credit
permanent and include enhancements to the provision that would allow more
companies to take advantage of it.
"Innovation has given the U.S. and the rest of the world technological
advancement while creating high-skilled jobs," McCurdy noted. "If we want to
ensure that successive waves of innovation begin in the U.S., and that U.S.
workers are the first to benefit, we need fundamental economic building blocks
such as an effective R&D tax credit. Extending the credit is a solid step in
the right direction."
About EIA: The Electronic Industries Alliance is the leading advocate for
the U.S. high-tech industry in Washington, DC. Its 2,500 member companies
provide products and services ranging from microscopic electronic components
to state-of-the-art defense, space and industry high-tech systems, as well as
the full range of telecommunications and consumer electronic products. EIA's
mission is to promote the market development and competitiveness of the U.S.
high-tech industry through domestic and international policy efforts. To
learn more about EIA advocacy, initiatives, programs and meetings, go to
http://www.eia.org.
SOURCE Electronic Industries Alliance
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Related links:
http://www.eia.org
CONTACT:
Neil Gaffney of Electronic Industries
Alliance, +1-703-907-7792, ngaffney@eia.org
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