Baucus Encourages R&D Tax Credit Permanence
(WASHINGTON, D.C.) U.S. Senator Max Baucus issued the following statement of support tomake the R&D tax credit permanent following the release of a letter by the R&D CreditCoalition to Congress from hundreds of companies that support a permanent, strengthened R&Dtax credit.
Baucus is the lead Democratic sponsor of S. 627, a bill to make permanent the R&D taxcredit along with several program enhancements. The prior version of this bill passed the Senateas an amendment to the JOBS bill (S. 1637 in 108th Congress). Baucus offered it as anamendment during conference negotiations on the middle-class tax bill (HR 1308, PL 108-311),but House leaders insisted that the expiring provisions, including R&D, only be temporarilyextended and without modifications. At that time, the R&D tax credit had expired (on June 20,2004), but the conference report restored the lapsed credit and extended it through December 31,2005.
The statement follows:
“I welcome this letter from more than 500 American companies calling for enactment ofa permanent R&D tax credit. American workers, including many in my home state of Montana,benefit from the high-paying technology jobs fostered by the R&D credit. These are goodpaying jobs that Montana residents want to keep. I am hopeful that this endorsement letter willspur Congressional leaders to make the Hatch-Baucus bill a priority for passage.
“The R&D tax credit has proven it is an effective incentive. It should be a permanentpart of the tax code so that U.S. businesses can rely on it for long-term projects. I look forwardto working on enacting this important provision with my friend Sen. Hatch and our Housecolleagues.”
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