Statement by Rep. James Sensenbrenner (R-WI).
Re: Introduction of HR 760, a bill to make permanent the R&D tax credit.
Date: February 12, 1999.
Source: Congressional Record, page E234.

HON. F. JAMES SENSENBRENNER, JR.

in the House of Representatives

FRIDAY, FEBRUARY 12, 1999

• Mr. SENSENBRENNER. Mr. Speaker, today I have introduced a bill to permanently extend the Research and Development Tax Credit.

• A permanent extension of the R&D Tax Credit is necessary to assuring those who conduct long-term research and development that the federal government values their efforts and will continue to provide support for the type of research that is the foundation of our economic prosperity. Failure to permanently extend the credit has created uncertainty in the research community. This uncertainty has created a disincentive for private industry to conduct long-term research projects to the detriment of our national welfare.

• We must find ways to leverage our Nation's resources to support Research and Development. Even with a $70 billion federal budget surplus, the Administration indicates that discretionary spending for science research and development programs will not be increased. As federal discretionary spending for R&D is squeezed, incentives must be used to maintain America's investment in private sector innovation so that we can maintain our global leadership in high-technology, high-growth industries that help to keep our economy the strongest in the world.

• Congress realizing the need for such a credit, has extended the R&D tax credit eight times over a period of 17 years. It is clear that the repeated extensions demonstrate Congressional support. However, it has become apparent in recent years that this approach does not allow for industry to plan their R&D in ways that increase the level, and efficiency of research spending.

• There is clear bipartisan support for permanent extension of the R&D Tax Credit and I urge my colleagues to support this important piece of legislation.