Washington, D.C. – Yesterday, Congresswoman Julia Brownley (D-Westlake Village) introduced the Innovation, Research, and Manufacturing Act, which would expand and make permanent the research and development tax credit.
“Investments in research and development spur job creation, and the R&D tax credit helps businesses both large and small invest in new technology to keep Ventura County at the forefront of innovation,” said Congresswoman Brownley, who is a member of the House Committee on Science, Space, and Technology.
Research and Development (R&D) is critical in advancing technology, growing a business, and diversifying a product line. The credit benefits businesses both large and small that spend money for R&D for new products. The bill is intended to help businesses grow and expand, creating jobs here in the United States. Specifically, it would:
• Increase the existing credit by 50% to spur additional job creation,
• Make the credit a permanent part of the tax code to provide certainty for businesses, and
• Allow qualified small businesses a credit against payroll taxes.
“The strength and vitality of the Ventura County economy – today and increasingly in years to come – is in innovation,” said Bruce Stenslie, President and CEO of the Economic Development Collaborative – Ventura County (EDC-VC). “A little known fact is that Ventura County ranks fourth nationally for high-paying jobs in manufacturing. Those high wages are because of our concentration of firms whose profitability is tied to research and development and new product innovation. Finding ways to incentivize and reward these firms for R&D investments is what will fuel their growth. This bill is spot on for what the manufacturing sector needs.”
“California Healthcare Institute (CHI) commends Congresswoman Brownley on her introduction of H.R. 3640 to increase and make permanent the research tax credit. California’s biomedical companies depend on these tax credits to fund the risky research needed to drive the development of new drugs, devices and therapies that save lives,” said CHI’s Senior Vice President of Public Policy, Todd Gillenwater. “New drugs and devices can cost billions of dollars of investment and take up to 15 years to develop. Updating and making permanent the R&D tax credit is crucial for providing promising life sciences companies the incentives they need to make major investments in the U.S., especially at a time when foreign countries are aggressively recruiting high-tech industries to move offshore.”
“I am proud that our community is home to high-technology innovators including biotech and precision manufacturing,” Congresswoman Brownley said. “My bill will help them, and other businesses throughout the region, compete in the 21st Century economy and build a better, more prosperous future for all Californians.”