Congressional delay in reauthorizing the critical R&D tax credit — which expired at the end of last year — is causing increasing alarm among manufacturers. The tax credit is an important incentive for businesses to invest in research and development, and its absence has given a significant competitive edge to our global competitors. The credit has proved so effective, and politically popular, that it’s often attached to other legislation as a “sweetener.” Well, with all the delays, we’re starting to get a sour feeling.
The Associated Press has reported an excellent story on what’s at stake and the state of play. We agree with the NAM’s Monica McGuire, who also serves as executive secretary for the R&D Credit Coalition: “This is the ninth month. It’s time for the baby to be born.”