Obama Proposes to Permanently Extend R&D Tax Credit

During the week Sept. 7th, 2010, President Barack Obama urged Congress to permanently extend and expand a research and development (R+D) tax credit for businesses, to encourage job growth and spur the economy. Obama described his proposal, which would cost about $100 billion over the next decade, in an economic speech Sept. 8th in Cleveland, according to two administration officials. The business proposal would increase and permanently extend research and development tax credits for businesses, rewarding companies that develop new technologies domestically preserving American jobs.Obama has promised to roll out ideas to boost growth and encourage hiring as he focuses on the economy. The Labor Department reported during the week of Sept 7th that private payrolls climbed in August, more than forecast, though the unemployment rate rose to 9.6% from 9.5% as more people looked for work. Many claim the research tax credit is important in terms of job creation over the longer term. Created in 1981 as a temporary measure, the research tax credit has been extended repeatedly by Congress. The latest extension expired in December 2009, causing unease among many business groups, which have made extending the credit a top priority. White House economic advisers have said to also be considering more tax breaks for small businesses and new spending on infrastructure, according to congressional aides. Obama’s proposal will run up against a tight congressional calendar and election-year politics. The Senate is scheduled to return to Washington Sept. 13 and the House the next day.

Related R&D Tax Credit

Research & Development (R&D) Tax Credits

• R&D Case Study: Elimination Uncertainty
• R&D Case Study: Improving Manufacturing Process
• R&D Four-Part Test

 

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Freed Maxick CPAs is Western New York’s largest public accounting firm and a Top 100 Public Accounting Firm in the U.S. With over 200 professional and administrative staff, Freed Maxick has the resources to work with companies nationwide to claim the R&D Tax Credit. To see if your company qualifies, Contact us Via the Web or Toll Free: 1-800-777-4885.