R&D Credit Keeps Manufacturing on the Cutting Edge

By May 11, 2015Taxation

Manufacturers must invest in advanced technologies to stay competitive in a 21st century global economy. To be an innovator, manufacturers must hire engineers, scientists, and design teams who will create the next great technology that will make the company, and the economy, more productive. The research and development (R&D) tax credit contributes to this process by alleviating some of the cost of hiring such top-notch R&D teams and investing in the supplies needed to come up with the next big thing. 

This is the case for many manufacturing companies, including Structural Concepts, an innovator and technical leader in the food service and retail grocery markets based in Muskegon, Michigan. The manufacturing company produces refrigerated merchandizers to promote higher impulse sales for their customers. The new innovative features and custom products that the company develops require high level engineering and manufacturing processes as food and product safety along with energy efficiency have to be held in the highest regard. Structural Concepts has used the R&D tax credit to invest in new glass technologies that help the company innovate — creating more jobs not only for SCC but also for their customers and those customers’ suppliers who will sell and produce more as a result of the initial R&D investment. Without the R&D credit, which expired at the end of 2014, investments like this become even more difficult at a time when small and medium manufacturers are already facing higher tax and regulatory expenses.

Fortunately, the U.S. House of Representatives will soon vote on legislation (H.R. 880) to reinstate the R&D tax credit, strengthen it and make it permanent so that companies like Structural Concepts can continue to stay cutting edge. The NAM urges all members of Congress to support manufacturing by voting for H.R. 880.

Christina Crooks

Christina Crooks is Director, Tax Policy for the National Association of Manufacturers, where she is responsible for providing NAM members with important updates on tax policy, pensions, and corporate finance and management issues and representing the NAM’s position on these issues before Congress and the Administration. Within the NAM tax policy portfolio, Christina focuses on the R&D tax credit and tax extenders, and serves as the Executive Secretary for the R&D Credit Coalition and a leader in the Broad Tax Extenders Coalition.

Before joining the NAM, Crooks served as senior manager of government affairs for Financial Executives International, where she advocated on behalf of the association’s membership of senior-level business executives on tax, corporate treasury, pension and benefit issues. Previously, she worked as a legislative assistant to Rep. Michael Castle (R-DE), a senior member of the House Committee on Financial Services. Christina handled financial services issues for the Congressman during consideration of the Dodd-Frank Act, and also worked on small business and judiciary issues. Christina earned a B.A. in Political Science from the University of Delaware and a M.A. in Political Science from American University.

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