TechNet: Preserve Research and Development Inside U.S.

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April 8, 2014

TechNet: Preserve Research and Development Inside U.S.

21 organizations urging renewal of critical R&D tax credit

WashingtonTechNet, the bipartisan policy and political network of innovation economy CEOs, is urging the leaders of the House Ways and Means Committee to renew the critical research and development tax credit, an incentive that has helped to rapidly grow America’s software and technology sector.

In a letter to Chairman Dave Camp (R-Mich.) and Ranking Member Sander Levin (D-Mich.), TechNet and 21 innovation organizations wrote: “Stimulating innovation in products that are developed domestically and exported globally, R&D incentives for software generate growth in one of the most dynamic and rapidly growing areas of the American economy.  They encourage companies both foreign and domestic to invest in facilities and employees here in the United States, creating not just jobs, but careers.  The software industry alone contributes more than $170 billion annually to U.S. GDP and supports 3.4 million high-paying American jobs.”

Linda Moore, president and CEO of TechNet, said: “Software is no longer confined only to the tech sector—it plays an integral role in nearly every company and every aspect of our lives.  Renewing this vital tax credit makes good tax and fiscal policy, it will keep investment flowing, and it will preserve our innovation leadership around the world.”

In addition to TechNet, the letter was signed by: ACT | The App Association, Application Developers Alliance, Arizona Technology Council, BSA | The Software Alliance, CompTIA, The Computing Research Association (CRA), CTIA – The Wireless Association, The Entertainment Software Association (ESA), Information Technology Industry Council (ITI), National Foreign Trade Council (NFTC), New Jersey Technology Council, North Carolina Technology Association, Semiconductors Industry Association (SIA), Silicon Valley Leadership Group, Software Finance and Tax Executives Council (SoFTEC), Software & Information Industry Association (SIIA), the Technology CEO Council, Technology Councils of North America (TECNA), U.S. Chamber of Commerce and Washington Technology Industry Association.

The letter is available below and here:

 

April 8, 2014

 

The Honorable Dave Camp

Chairman

Committee on Ways and Means

U.S. House of Representatives

Washington, DC 20515

 

The Honorable Sander Levin

Ranking Member

Committee on Ways and Means

U.S. House of Representatives

Washington, DC 20515

 

Re: Preserving Incentives for Research and Development in the United States

 

Dear Chairman Camp and Ranking Member Levin:

The undersigned organizations write in support of preserving a strong, permanent, and inclusive research and development (R&D) tax credit that incentivizes and rewards all forms of domestic innovation, including software.

The widespread societal and economic benefits of the R&D credit are well documented. In 2011 alone, businesses invested $267.3 billion in R&D in the United States. Thus, the efforts of the Ways and Means Committee to make this tax credit permanent are consistent with sound tax and economic policy and they are much appreciated.

Previously thought to exist solely within the province of the tech sector, software is everywhere today. Software innovations make our cars smarter, improve the way we bank, make manufacturing more efficient, and reduce lag times for transactions in financial markets.  Software enables technologies within and across sectors that increase productivity. Further, the increases in efficiency that result from these products improve businesses’ bottom lines and save time and money for American families.

Stimulating innovation in products that are developed domestically and exported globally, R&D incentives for software generate growth in one of the most dynamic and rapidly growing areas of the American economy. They encourage companies both foreign and domestic to invest in facilities and employees here in the United States, creating not just jobs, but careers. The software industry alone contributes more than $170 billion annually to US GDP and supports 3.4 million high-paying American jobs.

For these reasons, as the Committee works to enact a permanent R&D tax credit, we urge you to ensure that it remains a robust incentive, inclusive of all technologies, that reaffirms and strengthens the United States as the global leader in innovation.

 

About TechNet

TechNet is the national, bipartisan network of CEOs that promotes the growth of technology industries and the economy by building long-term relationships between technology leaders and policymakers and by advocating a targeted policy agenda. TechNet’s members represent more than one million employees in the fields of information technology, biotechnology, e-commerce and finance. TechNet has offices in Washington, D.C., Palo Alto, Sacramento, Seattle, Boston and Austin.

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