Make permanent the Research & Development tax credit

Obama takes steps in making tax credits permanent

Updated: Friday, September 4th, 2009 | By Catharine Richert

 
Inventors — and the corporations that employ them — may not have to lobby year after year for tax perks much longer.
 
On the campaign trail, President Barack Obama promised to extend tax credits for research and development.
 
Already, several steps have been taken to accomplish his goal.
 
First, Obama included $75 billion in his fiscal year 2010 budget to make the credit permanent.
 
And at least two bills have been introduced this year that would accomplish his goal.
 
One bill, authored by Reps. John Boccieri and Chris Lee, would make the research and development tax credit permanent, and offer a bonus credits to companies who manufacture most of their products in the United States. The bill was introduced on March 17, 2009, but so far, the bill hasn't seen any action in the House of Representatives.
 
Sens. Max Baucus and Orrin Hatch introduced similar legislation on June 8, 2009, but the Senate has not taken up that bill either.
 
Meanwhile, Obama has made progress on his promise about the renewable energy production tax credit. The stimulus bill signed in February 2009 extended the credit until 2012. But he's not yet achieved his goal of making credit permanent.
 
So, there's progress on both aspects of this promise. We rate it In the Works.

Sources:

The White House, Fact Sheet: Investing in Our Clean Energy Future , accessed Sept. 4, 2009

The House of Representative's Democratic Caucus, press release on research and development tax credit bill, accessed Sept. 4, 2009

Sen. Orrin Hatch, press release on research and development tax credit bill , accessed Sept. 4, 2009

The American Wind Energy Association, fact sheet on the renewable energy production tax credit, accessed Sept. 4, 2009