The House Ways and Means Committee posted the following message on its home page showing the support of several organizations, including BIO, for the American Research & Competitiveness Act (H.R. 4438):
“Today, the National Association of Manufacturers, Chamber of Commerce, R&D Credit Coalition, and Biotechnology Industry Organization – representing thousands of small and large U.S. businesses – issued their support for H.R. 4438, a bipartisan, permanent extension of the research and development (R&D) tax credit. In their call for a permanent R&D credit, these groups note that the legislation will make the U.S. more globally competitive, create jobs, and allow U.S. companies to innovate and invest in America.”
The R&D tax credit is an important tool incentivizing investment at companies with established revenue streams, and we welcome this bill to strengthen and make it permanent. Making the credit permanent would recognize its vital role in supporting America’s innovation economy while providing certainty for businesses working toward the next generation of medical breakthroughs.
We also feel it is important to recognize the tremendous investments in research made by smaller, pre-revenue companies which do not yet have a tax liability. Such companies are unable to take advantage of the R&D tax credit as currently structured. We believe that this critical research should be incentivized in the tax code regardless of the size of the company involved.
The full press release can be accessed here.