WASHINGTON – The Information Technology Industry Council (ITI), the global voice of the tech sector, says it sees a big win in the tax legislation unveiled today for speeding along innovations and growing the economy. In a letter sent today to members of the House of Representatives, ITI is throwing its strong support behind the Protecting Americans from Tax Hikes (PATH) Act that makes the research and development (R&D) tax credit permanent, telling lawmakers that it will consider this a key vote.
“ITI has long advocated to make the R&D tax credit permanent so tech companies will have the certainty and incentives they need to make high risk, high reward innovations,” ITI President and CEO Dean Garfield said. “By making the R&D tax credit permanent, lawmakers are making a solid investment in homegrown innovation that will propel new technologies forward and grow our economy. We couldn’t agree more, and encourage Congress to act quickly to make the R&D tax credit permanent.”
In ITI’s key vote letter to lawmakers, Garfield noted widespread research showing numerous benefits. First, the R&D tax credit 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 new technologies that are transforming our world and making our lives better. In addition, Garfield said, the five-year CFC Look-Through extension included in the package will help ITI member companies operating globally by providing relief from barriers created by the out-of-date U.S. tax code.
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