[Congressional Record Volume 145, Number 26 (Friday, February 12, 1999)]
[Extensions of Remarks]
[Page E234]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     EXTENSION OF THE RESEARCH AND DEVELOPMENT TAX CREDIT: H.R. 760

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                    HON. F. JAMES SENSENBRENNER, JR.

                              of wisconsin

                    in the house of representatives

                       Friday, February 12, 1999

  Mr. SENSENBRENNER. Mr. Speaker, today I have introduced a bill to 
permanently extend the Research and Development Tax Credit.
  A permanent extension of the R&D Tax Credit is necessary to assuring 
those who conduct long-term research and development that the federal 
government values their efforts and will continue to provide support 
for the type of research that is the foundation of our economic 
prosperity. Failure to permanently extend the credit has created 
uncertainty in the research community. This uncertainty has created a 
disincentive for private industry to conduct long-term research 
projects to the detriment of our national welfare.
  We must find ways to leverage our Nation's resources to support 
Research and Development. Even with a $70 billion federal budget 
surplus, the Administration indicates that discretionary spending for 
science research and development programs will not be increased. As 
federal discretionary spending for R&D is squeezed, incentives must be 
used to maintain America's investment in private sector innovation so 
that we can maintain our global leadership in high-technology, high-
growth industries that help to keep our economy the strongest in the 
world.
  Congress realizing the need for such a credit, has extended the R&D 
tax credit eight times over a period of 17 years. It is clear that the 
repeated extensions demonstrate Congressional support. However, it has 
become apparent in recent years that this approach does not allow for 
industry to plan their R&D in ways that increase the level, and 
efficiency of research spending.
  There is clear bipartisan support for permanent extension of the R&D 
Tax Credit and I urge my colleagues to support this important piece of 
legislation.

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