[Congressional Record Volume 154, Number 83 (Tuesday, May 20, 2008)]
[House]
[Page H4284]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   MAKE THE R&D TAX CREDIT PERMANENT

  (Mr. SALI asked and was given permission to address the House for 1 
minute and to revise and extend his remarks.)
  Mr. SALI. Mr. Speaker, I rise to address the subject of the R&D tax 
credit which lapsed on December 31 of last year.
  One of this country's greatest strengths has been its ability to 
innovate, to create and develop new ideas. The lack of a competitive 
R&D tax credit here at home is driving American businesses to invest in 
R&D abroad.
  In the last 5 years alone, over 100 global companies have established 
R&D centers in India due to the long-term benefits provided by that 
government. With benefits such as a 15-year phased income tax holiday, 
deductions for in-house R&D equal to 1\1/2\ times the expenses 
incurred, coupled with accelerated tax deductions on prior period 
expenses, it is easy to see why companies are choosing to invest in 
India over the U.S., especially now that we have allowed our R&D tax 
credit to expire.
  The R&D tax credit should be renewed and made permanent as soon as 
possible, to create jobs in America and ensure we will always be on the 
cutting edge of innovation.

                          ____________________