TechNet: The Voice of the Innovation Economy
Our Issues

Tax Policy

U.S. tax laws and regulations determine the climate for innovation and our industry’s ability to compete in a global economy. TechNet has supported targeted tax reforms that enable a competitive technology industry and encourage investment in next-generation innovations.

The following tax policies are TechNet priorities:

  • Clarification and changes to Section 409A of the Internal Revenue Code, enacted with the American Jobs Creation Act of 2004 imposes sweeping new rules on deferred compensation arrangements, significantly impacting equity compensation arrangements including stock options. These new rules will potentially threaten young, fast-growing technology companies and stifle use of employee stock options.

  • TechNet has proposed broadening the restrictive approach taken with respect to software eligible for the incentives contained in Section 199 of the Internal Revenue Code, enacted with the American Jobs Creation Act of 2004. TechNet believes that domestically produced software should be eligible for the Section 199 deduction regardless of the manner in which that software is provided to the customer.

  • TechNet has championed the enactment of a permanent and improved Research & Development Tax Credit and was instrumental in the passage of the five-year extension of the R&D Tax Credit in 1998.

  • TechNet supports the immediate enactment of H.R. 3385, the AMT Credit Fairness Act, introduced by Senior Ways and Means Member Sam Johnson (R-TX). The bill will help provide relief for ISO AMT victims – employees of small and large companies across America who, due to an unintended flaw in the tax code, are being forced to pay taxes up to and exceeding 300 percent of their annual salaries.

  • TechNet opposes the enactment of taxes on Internet access or discriminatory regulations and taxes that treat Internet purchases differently from other types of sales. We strongly oppose taxes and regulations that would impose burdensome costs on consumers who shop on-line, threaten the viability of small businesses that rely on e-commerce and slow the growth of the high-speed broadband network.