On Friday, House Majority Leader Eric Cantor released the spring legislative agenda in a memo which indicated the House will vote on a permanent Research and Experimentation Tax Credit bill in May. Cantor stated, “This will put American companies, especially American manufacturers, on par with their international competitors.”
A Brief History of the Research & Experimentation Tax Credit
The Research and Experimentation (R&E) Tax Credit has been allowed to expire eight times and has had fifteen extensions since it was created in 1981 as part of the Economic Recovery Tax Act to encourage economic growth and to increase the total amount of research activity in the United States. It expired most recently December 31, 2013. The R&E credit was designed to incentivize US companies in a wide variety of industries (not just those operating in a laboratory setting) to invest in R&E spending and high paying technological jobs. A permanent R&E credit would provide certainty to US companies to invest in new industries and breakthroughs in manufacturing, production, and engineering.
Stay tuned for updates on this important development!