[Congressional Record Volume 154, Number 58 (Monday, April 14, 2008)]
[Extensions of Remarks]
[Page E597]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          IN SUPPORT OF THE RESEARCH & DEVELOPMENT TAX CREDIT

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                       HON. EDDIE BERNICE JOHNSON

                                of texas

                    in the house of representatives

                         Monday, April 14, 2008

  Ms. EDDIE BERNICE JOHNSON of Texas. Madam Speaker, it is a shame that 
the research tax credit expired at the end of 2007. Our failure to re-
authorize it is counter to the ideals of the America COMPETES Act, 
passed into law last summer.
  At least nine research tax credit bills have been introduced in this 
Congress.
  Last March, I introduced H.R. 1712, a companion bill to that of 
Senator Baucus, the Chair of the Senate Finance Committee. It changes 
the formula so that the credit is based on a company's research 
spending instead of gross receipts. It proposes a 20 percent credit for 
U.S. research expenses exceeding 50 percent of a company's average 
expenses over the preceding 3 years.
  It establishes a more streamlined 80 percent reimbursement rate for 
all contract research expenses and allows a credit for equity 
investments in small business innovation companies. Most importantly, 
the Baucus/Johnson proposal makes the R&D tax credit permanent.
  Texas ranks 4th in the Nation for total R&D funding and 3rd for gross 
State product. Innovation and research are critical for my State.
  Again, I strongly support a generous and permanent research tax 
credit.




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