April 22,2004

Baucus Presses for R&D Tax Credit Permanence, Applauds Coalition Study

Study Emphasizes Important Link between Job Creation and R&D Tax Credit

(WASHINGTON, D.C.) The R&D Coalition, an organization compromised of professional andtrade associations along with companies benefiting from the R&D tax credit, today released theresults of a study conducted on the subject. The study revealed conclusively the numerousbenefits the R&D tax credit provides to U.S. companies. U.S. Senator Max Baucus (D-Mont),ranking member of the Senate Finance Committee, issued the following statement upon releaseof the study:

“We've long known the importance of the R&D tax credit and now due to the Coalition'sstudy, we have proof of the significant benefits that companies of all s throughout the nationreceive. In my home state of Montana, over 100 companies have taken advantage of theincentive to perform research in the U.S. For more than 20 years, the R&D tax credit has helpedstimulate innovation and create high-skill, high-wage jobs in the U.S.

Now we need to expand the R&D credit -- and make it permanent -- in order to continueto encourage the American risk-taking and innovation that leads to job creation on U.S. soil. Asthe Senate looks this year at ways to address offshoring, expansion of the R&D tax credit shouldbe at the top of our "To-Do" list.

My Senate colleague, Senator Hatch, and I have stood up year after year to make thiscritical incentive permanent. This year, the Senate included in the JOBS bill an 18-monthextension of the R&D tax credit by an overwhelming 93-0 vote. This is a good first step, but Iwill continue to press for final passage, as well as full permanence.

I would also like to recognize the efforts of our House colleagues, RepresentativesJohnson and Matsui, who share our commitment of keeping research activities and jobs in theUnited States. I look forward to continuing to work closely with them to achieve R&D tax creditpermanence. In the meantime, I am hopeful that the House will follow the Senate's lead ofextending and strengthening the credit -- businesses with projects already in the pipeline will beleft hanging if the House fails to follow the Senate lead.”