WASHINGTON – Today the Information Technology Industry Council (ITI), the global voice for the technology sector, voiced strong support for the Protecting Americans from Tax Hikes (PATH) Act, which would make the research and development (R&D) tax credit permanent and extend CFC Look-Through for five years. In a letter to senators, ITI emphasized how a permanent R&D credit will give businesses the certainty and incentive needed to innovate, while extension of the CFC Look-Through allows U.S. companies to remain competitive in the global marketplace. ITI sent a similar letter to the House of Representatives yesterday.
ITI scores votes that are key priorities for the technology sector. The following is text of the letter sent to Senators announcing the tech organization’s intention to key vote the legislation:
December 16, 2015
The Honorable Mitch McConnell
Washington, DC 20515
The Honorable Harry Reid
Washington, DC 20515
Dear Leaders McConnell and Reid:
On behalf of the 64 member companies of the Information Technology Industry Council (ITI), I write to express our strong support for the Protecting Americans from Tax Hikes (PATH) Act included in H.R. 2029, the combined tax-relief and government funding legislation. ITI has long advocated for continued extensions of the R&D and the controlled foreign corporation (CFC) Look-Through provisions. We are pleased to see that this critical legislation makes permanent the R&D credit and extends CFC Look-Through for five years. Given the importance of these provisions to the high-tech community, we will consider scoring votes in support of final passage of H.R. 2029 in our 114th Congressional Voting Guide.
A permanent R&D credit returns an assortment of economic benefits. First, it spurs new investment, which multiplies across the economy. Second, it encourages the kind of risk taking that is necessary to experiment and innovate. Finally, it encourages companies to choose the U.S. as their incubator for developing the innovations that are transforming our world and making our lives better. A permanent credit will provide American businesses with certainty, which will propel innovation and grow our economy. In addition, CFC Look-Through is another essential tool for ITI member companies operating globally as it provides relief from barriers created by our out-of-date code. We appreciate the five year extension and hope it provides a bridge to a rewrite of our code.
These tax policies are essential to our members’ competitiveness in the global marketplace and we therefore urge members of the Senate to vote yes on final passage of H.R. 2029, including the PATH Act. Thank you for your efforts to extend these critical tax provisions.
President and CEO
Cc: Members, US Senate