From: The Honorable Kendrick B. Meek
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Bill: H.R. 422
Co-Sponsor H.R. 422 To Help Invest in Research and Development Within the United States and To Create American Jobs
I have introduced legislation that would provide an R&D tax incentive encouraging companies to increase their research and development spending in the United States. I am hoping that you will join me in this effort to promote job creation and keep research and innovation thriving within the United States.
My bill would increase the Alternative Simplified R&D credit (ASC) from 14-percent to 20-percent and make the ASC credit permanent. In addition, the legislation would provide a transition period for the traditional R&D credit by extending the traditional R&D credit through 2010.
Employee wages account for nearly 70 percent of R&D expenditures in the United States. The vast majority of companies utilize the ASC over the traditional credit. Increasing the ASC from 14-percent to 20-percent would provide a significant incentive for companies to increase their U.S. R&D spending and to create jobs during this economic downturn.
By enhancing the ASC from 14-percent to 20-percent, the United States can compete against other countries that are offering very attractive incentives to lure R&D investment outside of the United States.
Please join me in this important legislation that will provide an incentive for companies to make additional
R&D investments in the United States. If you would like to be a co-sponsor, please contact Phyllis Jo Gervasio in my office at 5-4506, or via e-mail at Phyllisjo.Gervasio@.mail.house.gov