Fitzpatrick: A Tax Policy to Spur Innovation, Create Jobs
WASHINGTON, D.C. – Congressman Mike Fitzpatrick (PA-8) joined the House Friday in passing the bipartisan American Research and Competitiveness Act [H.R. 4438] which would help ensure the next wave of innovation and discovery happens in the United States.
“American ingenuity has always been the key to American success,” said Fitzpatrick following the bill’s passage. “This bipartisan legislation continues that tradition by ensuring that we’re doing everything we can to spur innovation and give American businesses and their employees the assistance they need to develop the ideas and technology of tomorrow’s economy.”
The legislation makes permanent the research and development tax credit utilized by more than 20,000 American small businesses to create jobs and increase economic growth. Originally introduced in 1981, and supported by President Ronald Reagan, the tax credit has been renewed repeatedly.
According to the National Association of Manufacturers, 70% of credit dollars are used to pay salaries of research and development workers, allowing for a stronger and more permanent research and development work force. Overall, the non-partisan Joint Committee on Taxation notes that a permanent extension of the tax credit will increase research and development in the United States by 10% - making our nation more competitive in a global economy.
“While Congress has taken no issue with extending the research and development tax credit over the last 30 years, running good tax policies up to the edge of expiration and then restoring them helps no one,” said Fitzpatrick. “Small business need consistency. By once and for all codifying this tax policy, we can give owners and operators the certainty they need to truly budget, plan, hire and grow their businesses.”
“Proposals to expand the R&D credit and make it permanent have a long history of bipartisan support in Congress. The research credit, enacted in 1981, has proven a long-standing mechanism for encouraging R&D and promoting jobs and manufacturing in the United States,” said Louis R. Chênevert, Chair of the Business Roundtable Tax and Fiscal Policy Committee in a letter to members of Congress. “Making it permanent will maximize its long-term effectiveness, encourage investment decisions, and formally adopt a policy that in reality is already part of established tax law.
“Increasing access to the opportunity of family-sustaining jobs for all Americans must to be our national priority,” said Fitzpatrick. “I urge the Senate to quickly take-up this jobs bill and begin to take action on the more than 40 others the House has sent their way.”
Congressman Mike Fitzpatrick is serving his third term in the U.S. House of Representatives. He represents Pennsylvania’s 8th district which includes all of Bucks County as well as a portion of Montgomery County. He serves as the Vice Chairman of the House Financial Services Subcommittee on Oversight and Investigations.