DearColleague.us

Letter

From: The Honorable Kendrick B. Meek

Sent By: phyllisjo.gervasio@mail.house.gov <mailto:phyllisjo.gervasio@mail.house.gov?subject=RE: Co-Sponsor H.R. 422 – To Help Invest in Research and Development Within the United States and To Create American Jobs>

Bill: H.R. 422

Date: 3/30/2009

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