Feeds

US Senate rubberstamps R&D tax credit

'Investment in the future'

High performance access to file storage

The US Senate has approved extending an expired tax credit for business research and development, a spending incentive that many American tech companies have come to rely on.

The R&D credit was renewed late Tuesday after being attached to the Renewable Energy and Job Creation Act, which earlier was passed by the US House of Representatives in May. The House must now approve the Senate-modified version of the bill before it goes to the President to be signed or vetoed.

Lawmakers have authorized annual extension of the research credit since it began in the early 1980s. It has been allowed to expire a total of 13 times over the years, however, prompting many in the tech industry to call for making the research spending relief permanent.

The credit, presently left to lapse since December, can cover up to 20 per cent of certain R&D spending by tech, manufacturing, and pharmaceutical firms. Those companies claim the funding dry periods lure research jobs overseas to countries where R&D tax incentives are better committed.

An outspoken supporter of the tax credit is Intel chairman Craig Barrett. At his opening keynote at Intel's Developer Forum in August, Barrett had choice words for Washington for allowing the program to lapse.

"Our government refuses to recognize investment in the future is essential," he said.

Meanwhile, opponents argue the tax credit amounts to no less than a government subsidy for large businesses. This claim strikes a particular cord against current negative reactions to government bailouts of US financial institutions — worrying many in the tech industry that the credit will be placed under much closer scrutiny this time around.

The Information Technology Industry Council lobby group applauded the Senate approving the measure.

"Given the historic economic uncertainty facing our nation, we should be doing all we can to encourage innovation and spark job growth in the US," said Ralph Hellman, ITI veep of government relations in a statement. "It's time for the House to act and pass this legislation right away."

The Renewable Energy and Job Creation Act also provides about $18bn of tax incentives for investment in renewable energy, energy efficiency, and conservation. Riding along is extensions of approximately $27bn of expiring temporary tax provision.

If passed, the extension of R&D credit will be extended until December 31, 2009. The proposal is estimated to cost $8.76bn over 10 years. ®

Combat fraud and increase customer satisfaction

More from The Register

next story
Putin tells Snowden: Russia conducts no US-style mass surveillance
Gov't is too broke for that, Russian prez says
Lavabit loses contempt of court appeal over protecting Snowden, customers
Judges rule complaints about government power are too little, too late
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Don't let no-hire pact suit witnesses call Steve Jobs a bullyboy, plead Apple and Google
'Irrelevant' character evidence should be excluded – lawyers
Edward Snowden on his Putin TV appearance: 'Why all the criticism?'
Denies Q&A cameo was meant to slam US, big-up Russia
EFF: Feds plan to put 52 MILLION FACES into recognition database
System would identify faces as part of biometrics collection
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
Ex-Tony Blair adviser is new top boss at UK spy-hive GCHQ
Robert Hannigan to replace Sir Iain Lobban in the autumn
Judge halts spread of zombie Nortel patents to Texas in Google trial
Epic Rockstar patent war to be waged in California
Reprieve for Weev: Court disowns AT&T hacker's conviction
Appeals court strikes down landmark sentence
prev story

Whitepapers

SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.