13th Time Isn't the Charm for R and D Credit
Dec 7, 2007
The Senate voted yesterday to approve a one-year extension of the R&D tax credit, which is set to expire on December 31st. Following a similar vote in the House last month, the bill is now headed to President Bush for his signature.
As Computerworld reports, it's the 13th time the credit has been extended since it was first approved in 1981, despite efforts by industry groups to get a permanent extension. In a press conference earlier this week, Sen. Orrin Hatch (R-UT) made a final appeal that acknowledged the deja vu:
The fact that we are here again this year represents both our successes and our challenges in efforts to champion the research credit. We have succeeded in getting the credit extended and expanded many times. The fact is that the credit is still here and it is still effective in its objective of increasing U.S. research. However, the fact that we are here today also demonstrates that we have not succeeded in our long-term goal of making the credit permanent. And while I am not expecting a miracle this year, I am confident that the research credit will be extended once again.
The silver lining for supporters is that the extension will give companies another year to budget for R&D with the credit in place. And it will certainly give them another year to push for a permanent extension.
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R&D tax credit
