PALO ALTO, Calif., March 23 -- The Technology Network (TechNet), the technology industry's bipartisan political organization, is supporting a bill to establish a permanent federal incentive for promoting long-term, basic research by American corporations. The endorsement comes as a key part of TechNet's effort to renew America's commitment to long-term research.
The bill, offered by Sens. Orrin Hatch (R-UT) and Max Baucus (D-MT), would provide a 20 percent credit for incremental investments above firms' historical levels of research. The Hatch-Baucus bill mirrors legislation proposed in the House by Representatives Nancy Johnson (R-CT) and Robert Matsui (D-CA). The Hatch-Baucus legislation proposes to make permanent the R&D Tax Credit. Since its inception in 1981, the R&D credit has proven highly effective at fostering innovation, increasing productivity, and creating jobs.