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Press Release on the R&E Tax Credit
Contact: David Gately
Te: 202-296-2237, ext. 16
Email: dgately@aaes.org
Washington, DC (Feb. 20, 2001) - The Engineers' Public Policy Council (EPPC) of the American Association of Engineering Societies (AAES) announced their support today for the efforts of Representatives Nancy Johnson (R-CT) and Robert Matsui (D-CA) to make the Research and Experimentation tax credit permanent.
"Investment in science and engineering research is the lifeblood of technological innovation, which drives U.S. economic growth, environmental progress, and national security. Almost two-thirds of the nation's science and engineering research is funded by private firms," says Dr. Theodore T. Saito, Chair of the EPPC. "Making the credit permanent will spur even greater private investment in research."
Recent studies have shown that a permanent extension of the R&E tax credit would boost productivity, spur economic growth and stimulate additional domestic R&D spending. A permanent R&E credit will continue to fuel the U.S. economy by keeping American companies prosperous and competitive.
"As the 21st century begins, and we are looking at years of strong economic growth ahead, now is the time to make a long-term commitment to research and development," says Dr. Saito.
AAES believes that the R&E tax credit provides an important, market-driven incentive for companies to increase their R&D spending in the United States. The credit is both a good investment in U.S. productivity and job growth and a critical complement to direct federal subsidies for R&D.
AAES is a federation of engineering societies dedicated to advancing the knowledge, understanding, and practice of engineering. Its member societies represent the mainstream of engineering in the United States, over one million engineers in industry, government and academia.