Support for R&D Tax Credit in the Democratic Platform

By August 28, 2008General, Innovation, Taxation

From Financial Week, “Surprise! Dem platform calls for a permanent R&D tax credit“:

The new Democratic Party platform, unveiled Monday evening in Denver, has been mostly lost in the hoopla surrounding the convention. But several planks in the platform should grab the attention of corporate finance execs. At the top of the list: making the research and development tax credit permanent.

The R&D tax credit has been extended in one-year iterations almost a dozen times since it was created in 1981. Several industries have backed making the credit permanent, saying that businesses need to be able to rely on the credit to effectively budget for research and development.

Jay Timmons, executive vice president for the National Association of Manufacturers, said in a phone interview from Denver that “this is an issue that the Democrats should own,” referring to the fact that a Democratic Congress passed the original law. “It is really part of their heritage.”

According to Mr. Timmons, he has spoken with several Blue Dog Democrats—a group of fiscal conservatives within the party—as well as other party officials during the convention about making the tax credit permanent, and has seen interest in the issue. “Both Democrats and Republicans want to make it permanent, and there’s one simple way to make that happen: just do it,” he said, adding that the R&D tax credit should be the first piece of legislation lawmakers propose when they come back from August recess.

The Democratic platform is available here.

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