Washington D.C. – House Majority Whip Kevin McCarthy (CA-23) released the following statement regarding House passage of the American Research and Competitiveness Act of 2014:
“One of the greatest strengths of America is our innovative spirit. America’s natural inventive drive energizes the economy by creating jobs, lowering prices, increasing productivity, and, most importantly, improving the quality of life for Americans.
The R&D tax credit has continually incentivized private sector investment in research and development activities . The National Association of Manufacturers estimates that 70 percent of credit dollars are used to pay the salaries of high-skilled R&D workers. The research and development this tax credit spurs will boost American manufacturing, production, and innovation to help rebuild an America that works.”
“For years, Congress—on a bipartisan basis—has continually incentivized more research and development activities through short-term extensions of the R&D tax credit. Unfortunately, these short-term extensions can create uncertainty for businesses, who are unsure how they will be taxed due to the possibility that the credit may expire. That is why I applaud my good friend Kevin Brady, along with Ways and Means Chairman Dave Camp and his committee members, for their leadership in putting this bill on the floor today, which will simplify and make permanent this important tax credit.”