It's Your Call
Time to Renew the R&D Tax Credit
by Pamela Villarreal
March 28, 2012
Source: Industry Today
Based on President Obama’s 2013 budget, one would think he is an avid supporter of all things “research and development.” He proposes $140 billion on the R&D of “green” energy and other things such as wireless communications and cyber security. It is apparent that the budget aims to reflect R&D commitment, but the funds committed are limited to targeted projects. The government’s track record of subsidizing specific industries while ignoring others is questionable – consider such evidence: recent bankruptcies of several “green” energy companies.
Noticeably absent from Obama’s budget is a much needed extension of the R&D tax credit. It was available through last year to any company, large or small, in any industry that is producing a new innovation or improving an existing product. Despite all of the talk about the United States losing its competitive edge and the need to crawl out of the abyss, the R&D tax credit is non-existent this year unless Congress decides to extend it and make it retroactive for tax year 2012.