TechAmerica Applauds House Action on R&D Tax Credit

WASHINGTON, May 9, 2014 /PRNewswire-USNewswire/ -- TechAmerica, the leading voice for the U.S. technology industry, today applauded the House of Representatives for passing a permanent extension of the critical Research and Development Tax Credit and issued the following statement.

"Improving the R&D tax credit has been a top priority of the technology industry and making the credit permanent is long-awaited legislative landmark for our technology industry. Since the credit expired at the end of 2013, we have already seen negative impact on economic growth. Passage of this bill today, with bi-partisan support, provides momentum for the continuation of the credit, which is needed for the technology industry to invest in the research and development activities that spur innovation, economic growth and create jobs.

We also wish to note that while we fully support the House action, we also support an enhancement to the R&D tax credit, as included in the Senate version, which would allow small startup firms to offset this credit against their payroll tax liability. Most small startups do not generate taxable income in the early years, and thus have no federal income tax against which to offset this valuable credit. The Senate version also would allow investors in pass-through startup entities to offset their distributive share of any R&D tax credit against the alternative minimum tax liability of individual investors. 

We look forward to continuing to work with Congress to enact legislation that makes the R&D tax credit a permanent part of the tax code." 

About TechAmerica

Representing technology companies of all sizes, TechAmerica, as powered by CompTIA, the ICT industry trade association, is dedicated to advocating for the ICT sector before decision-makers at the state, federal and international levels of government.  With offices in Washington, D.C., Silicon Valley, Brussels and Beijing, as well as regional offices around the U.S., we deliver our members top-tier business intelligence and networking opportunities on a global scale. We are committed to expanding market opportunities and driving the competitiveness of the U.S. technology industry around the world. Learn more about TechAmerica at www.techamerica.org.

SOURCE TechAmerica