Legislation Would Boost R&D Tax Credit

A bipartisan group of lawmakers in the House of Representatives has introduced legislation that would increase the rate of the federal R&D tax credit from 14% to 20% and make it permanent. The current credit is scheduled to expire at the end of this year. “Innovation drives America’s future,” says Rep. Kevin P. Brady (R-Texas), a senior member of the House Ways & Means Committee and author of the American Research & Competitiveness Act of 2011 (H.R. 942). “To keep from falling behind our global competitors, we need to modernize the tax credit, strengthen it to encourage companies to make greater investment in research and jobs, and make the credit permanent so businesses have the confidence to make long-term investment decisions,” he says. Calvin M. Dooley, president and CEO of the American Chemistry Council, an industry trade group, says that “as one of the industries at the forefront of innovation, we strongly support this bill.”