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Brand Protection/Anti-Counterfeiting Card Check and the Employee Free Choice Act Commercial Vehicle Safety Technology Global Environmental Regulations International Trade Negotiations Research and Development (R&D) Tax Credit Stopping Distance for Heavy Duty Trucks
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supplier issues Research and Development (R&D) Tax Credit Description: Created in 1981, the research and development (R&D) tax credit was designed to stimulate technological innovation in the United States. Today, the R&D tax credit remains an integral element to maintaining innovation and investment in the U.S. and enables key industries, such as automotive and heavy duty parts manufacturers, to invest in new ideas and inventions. The R&D credit permits individual companies to make their products better, safer, and increasingly competitive in the global market. In addition, the credit is a powerful incentive for the nearly 16,000 companies of all sizes in all 50 states that use the credit to undertake and increase research activities in the U.S. Many foreign nations embrace similar incentives in support of their domestic industries. It is vital that the U.S. level the playing field by equally supporting the R&D investments of its own manufacturers. In 2007, MEMA worked in cooperation with the National Association of Manufacturers’ (NAM) R&D Tax Credit Coalition to support legislation which would extend and strengthen the R&D tax credit. Status: The R&D tax credit extension was part of a package of tax breaks included in a bill approved by the House Nov. 9. However, the Senate stripped those provisions out of its Temporary Tax Relief Act of 2007 on Dec. 19, the day before recessing. The measure was not enacted before the credit expired on December 31, 2007. 2008 Anticipated Action: In order to continue the credit, Congress will be required to approve an additional extension of the credit or pass legislation making the credit permanent. MEMA strongly supports passage of legislation which would transition the credit to a permanent status. Since its inception in 1981, the credit has been extended 13 times. U.S. manufacturers need a permanent R&D credit to remain competitive on the global stage. MEMA will continue to work with NAM’s R&D Tax Credit coalition and members of Congress to ensure the credit is made available in 2008 and in years to come. MEMA Staff Contact: Amy Garcia
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