HIGH TECH GROUPS SAY BAUCUS-GRASSLEY TAX BILL WILL SPARK RESERACH AND INNOVATION

04.18.2008

High Tech Groups Say Baucus-Grassley Tax Bill Will Spark Research and Innovation

WASHINGTON, DC –New and valuable innovations from the country’s best high tech firms are the likely outcome of new Senate legislation that would provide tax credits for research and development, said Rhett Dawson, President of the Information Technology Industry Council. Dawson praised Senators Max Baucus of Montana and Charles Grassley of Iowa for introducing a comprehensive bill yesterday that addresses a range of tax provisions.

“This legislation is an important step not just for the high tech sector but for the whole economy,” Dawson said. “Encouraging our best firms to invest in research and development is absolutely essential if we are to remain competitive and if our companies are to continue to innovate.”

Dawson said the tax bill provides a research tax credit equal to 20 percent of the amount by which a taxpayers qualified research expenses for a taxable year exceed its base amount for that year. This provision in the tax code expired last December and the new proposal would extend it to the end of 2009.

Extending the R & D credits is one of the top legislative priorities of ITI for the current session of Congress. Other areas of emphasis include high tech immigration reform, health IT and patent reform.

ABOUT ITI

The Information Technology Industry Council (ITI) represents the nation’s leading high-tech companies and works to advance public policies that boost innovation and global prosperity. ITI helps member companies achieve their policy objectives through building relationships with Members of Congress, Administration officials, and foreign governments; organizing industry-wide consensus on policy issues; and working to enact tech-friendly government policies.

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