Congressman Peters Fights for Research and Development Tax Credit
WASHINGTON, D.C. – Late yesterday, Congressman Scott Peters (CA-52) introduced H.R. 3757, legislation which would make the tax credit for research and development (R&D) permanent. The R&D tax credit is set to expire on December 31st, barring Congressional action.
“Research and development are central to San Diego’s economy and our national economic recovery,” Rep. Peters said. “If passed this legislation would grow the economy and create high-quality jobs in science and innovation around the country. It is time we provided our businesses and job-creators with the stability to plan and hire for the future.”
Specifically, the legislation would extend the research credit for 2014 while making the Alternative Simplified Credit (ASC) permanent and raising it from 14 to 20 percent. The Information Technology and Innovation Foundation has estimated that raising the ASC would create more than 150,000 jobs and increase GDP by $66 billion.
The bill would also lower the barriers to collaborative research and encourage energy research and biotechnology research consortia. Collaborative R&D is a path toward increased innovation and improved U.S. competitiveness. This legislation builds on San Diego’s unique partnerships between academia, industry, and private research to incentivize further consortia.