Congressional passage of R&D and energy tax credits will help promote innovation
Congress recently passed legislation that includes a two-year renewal of the research and development (R&D) tax credit through Dec. 31, 2009. The R&D tax credit had expired at the end of 2007.
TI urged the passage of the tax credit renewal as a measure that would spur investment in research and jobs in the U.S.
"The R&D tax credit is an important incentive for companies to conduct more research in the U.S.," said Bill Blaylock, TI vice president and senior tax counsel. "The credit is essentially a Ďjobsí provision, as more than 75 percent of R&D credit dollars go to wages for high-skilled, high-paying jobs in the U.S."
TI currently has more than 5,100 professional employees in the U.S. who are directly engaged in R&D activities.
The legislation also includes numerous energy-efficiency tax incentives such as credits for renewable energy, plug-in electric vehicles and energy-efficient appliances, as well as a tax deduction for energy-efficient commercial buildings and accelerated depreciation for smart meters and smart grid systems.
"These tax incentives for alternative energy and energy efficiency are important to addressing the nationís energy challenges and will help spur growth and innovation in these areas," said Paula Collins, TI vice president of government relations. "They will also help create a more fertile environment for growth in TIís energy businesses."