U.S. Representatives Kevin Brady (R-Texas) and John Larson (D-Connecticut), both senior members of the House Ways & Means Committee, joined forces today to boost American innovation. The American Research and Competitiveness Act of 2015, which permanently simplifies and strengthens the now-temporary U.S. Research and Development Tax Credit, passed the House Ways & Means Committee by a vote of 23-12.
“America is falling behind our global competitors. Unless the U.S. remains the world’s leading innovator, our economy will suffer and middle class families will lose jobs to foreign countries,” said Brady. “Making permanent the tax incentive for companies to invest in research and development here in the United States will ensure life-saving technologies, state-of-the art computer systems and breakthrough manufacturing products.”
– In recent years, the U.S. has dropped to 27th on the list of the 42 countries that offer R&D incentives.
– America’s share of global research and development has dropped from 39% before the turn of this new century to 31% last year.
– China’s R&D spending has increased fourfold and is poised to surpass that of the US by 2022.
“Permanency provides certainty to U.S. innovators, makes federal budget scorekeeping more honest, and removes the asterisk from this temporary provision so that pro-growth tax reform can advance,” added Brady.