[Congressional Record Volume 154, Number 59 (Tuesday, April 15, 2008)]
[Extensions of Remarks]
[Page E614]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          EXTENSION OF THE RESEARCH AND DEVELOPMENT TAX CREDIT

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                            HON. ZOE LOFGREN

                             of california

                    in the house of representatives

                        Tuesday, April 15, 2008

  Ms. ZOE LOFGREN of California. Madam Speaker, I rise to ask my 
colleagues to act swiftly to pass a strengthened and seamless extension 
of the Research and Development Tax Credit.
  The R&D tax credit expired at the end of last year, creating an 
unacceptable degree of uncertainty for our country's most innovative 
industries.
  An investment in R&D is an investment in the U.S. economy. In 2003, 
for example, U.S. companies invested $140.1 billion in domestic 
research and development.
  As we have seen in Silicon Valley and elsewhere, that investment has 
strengthened our economy and led to remarkable technological 
advancements.
  At a time when our economy is shedding jobs, a swift extension of the 
R&D tax credit makes abundant sense. More than 90% of the benefits of 
the credit are attributable to salaries of workers performing U.S.-
based research.
  A permanent extension of the credit would be ideal. Since its 
inception in 1981, the R&D tax credit has been extended 12 times for 
periods ranging from 5 years to 6 months.
  Given the long time horizon for returns on R&D investments, this ad 
hoc and piecemeal approach to extending the credit is problematic.
  Nonetheless, the prospect of the credit lapsing altogether is even 
more problematic. Given the intense global competition faced by our 
most innovative industries, we cannot cede any more ground to those 
countries that provide expansive, permanent R&D incentives to lure away 
R&D investments.
  Swift action on the R&D tax credit is critical to innovation centers 
like the Silicon Valley and to the overall health of the U.S. economy.
  We must act quickly and decisively to maintain and advance America's 
place as a leader in innovation.

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