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[Date to be inserted]
The Honorable Harry Reid Majority Leader
United States Senate
Washington, DC 20510 |
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The Honorable Nancy Pelosi
Speaker
U. S. House of Representatives
Washington, DC 20515 |
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The Honorable Mitch McConnell
Republican Leader
United States Senate
Washington, DC 20510 |
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The Honorable John Boehner
Republican Leader
U.S. House of Representatives
Washington, DC 20510 |
Dear Speaker Pelosi, Leader Reid, Republican Leaders McConnell and Boehner:
The undersigned companies rely upon American innovation to compete in today’s global marketplace. We must generate ideas and take risks to succeed against foreign competitors. U.S. based research is vital to these efforts. A key component to maintaining and expanding such research is the federal research and development tax credit (“R&D credit”).
There is widespread consensus that the R&D credit is central to a national innovation agenda. There is bipartisan support for a sustained commitment to modernize and extend a globally-competitive R&D tax credit that will increase domestic investment and create more high-quality American jobs. President Bush recently signed into law H.R. 2272 – the America COMPETES Act – legislation designed to enhance the research competitiveness of the United States. H.R. 2272 was based on recommendations contained in the National Academies’ 2005 Report, “Rising above the Gathering Storm.” Not included in the new law though was the recommendation to enact a stronger R&D tax credit.
The R&D credit will expire again on December 31, 2007. Recent legislative history – such as last year’s long delay in extending the credit – creates uncertainty, mitigates the credit’s incentive value, and raises the cost of doing R&D in the United States. It is increasingly more difficult for us to commit to future high-risk, high-dollar R&D investments that fund good-paying jobs in the United States. Companies must make critical R&D investment decisions under a cloud of uncertainty that affects current projects and future plans. Strengthening and extending the R&D credit now will help to lower the cost of those very investments that will continue to foster growth in the overall economy.
We respectfully urge you to pass legislation that strengthens and extends the R&D credit as soon as possible.
Sincerely,
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