Permanent R/D Credit Legislation would assist US companies.March 16, 2011 -
IPC applauded introduction of HR 942, The American Research and Competitiveness Act of 2011, which represents bipartisan effort to strengthen and make permanent R/D tax credit. As R/D is vital for US electronics companies' global competitiveness and domestic job retention, IPC urges members to contact their legislators to endorse passage of permanent R/D tax credit legislation. Also, permanent R/D tax credit will encourage long-term innovative efforts.
Legislation for Permanent R&D Credit Introduced into Congress Today will Assist U.S. Companies
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IPC-Association Connecting Electronics Industries
3000 Lakeside Drive
Bannockburn, IL, 60015
Press release date: March 9, 2011
BANNOCKBURN, Ill., USA - A long-time and active proponent of permanent research and development (R&D) tax credit legislation, IPC - Association Connecting Electronics Industries® applauds the introduction of H.R. 942, "The American Research and Competitiveness Act of 2011," a bipartisan bill to strengthen and make permanent the R&D tax credit. R&D is vital for U.S. electronics companies to be globally competitive and retain U.S. jobs. IPC members are encouraged to contact their legislators to endorse passage of permanent R&D tax credit legislation.
The frequent expiration of the R&D tax credit prevents the tax credit from effectively stimulating needed long-term R&D investments. The R&D tax credit most recently expired for nearly twelve months in 2009 - the fourteenth time that Congress has allowed the R&D tax credit to lapse. Many countries have more generous R&D tax credits, encouraging long-term R&D investment that provides a competitive advantage for companies in those countries.
A permanent R&D tax credit is imperative to encourage long-term innovative efforts and investments on U.S. soil and for the U.S. electronics industry to remain globally competitive and retain jobs.
"A permanent R&D tax credit is important for my company and the U.S. electronics industry," says Peter Bigelow, president and CEO, IMI Inc. "A permanent R&D tax credit will help my company grow new business, diversify product lines and develop new processes and products."
The pace of technological advancements in the electronics industry is continuous and R&D is essential for companies to produce state-of-the-art electronic products. Without a permanent R&D tax credit, the ability of U.S. electronics companies to compete globally is considerably weakened.
"It is vital for Congress to enact permanent R&D tax credit legislation," explains Robert Toppel, president of Axiom Electronics, LLC. "If the R&D tax credit were made permanent, my company and other U.S. businesses would be able to make long-term investments in R&D activities knowing that we would be eligible to claim tax credits."
For more information on "The American Research and Competitiveness Act of 2011," or to download a sample letter to personalize and send to members of Congress, visit www.ipc.org/R&D-tax-credit-take-action or contact Ron Chamrin, IPC manager of government relations, at firstname.lastname@example.org or +1 703-522-3964.
About IPC IPC (www.IPC.org) is a global trade association based in Bannockburn, Ill., dedicated to the competitive excellence and financial success of its 2,800 member companies which represent all facets of the electronics industry, including design, printed board manufacturing, electronics assembly and test. As a member-driven organization and leading source for industry standards, training, market research and public policy advocacy, IPC supports programs to meet the needs of an estimated $1.85 trillion global electronics industry. IPC maintains additional offices in Taos, N.M.; Arlington, Va.; Garden Grove, Calif.; Stockholm, Sweden; Moscow, Russia; Bangalore, India; and Shanghai, Shenzhen and Beijing, China.