U.S. Rep. Kendrick Meek Applauds Finance Committee Senators for Introducing Companion Bill Proposing Improvements to Research and Development Tax Credit

WASHINGTON, DC – Congressman Kendrick B. Meek (D-FL) applauded the introduction of the Baucus-Hatch legislation to improve and simplify the research and development (R&D) tax credit which is almost identical to the Meek-Brady bill.  H.R. 422 was introduced in January 2009 at the start of the new congress.

The Meek bill was introduced with fellow Ways and Means Committee member Rep. Kevin Brady (R-TX) and has 52 co-sponsors including a bipartisan group of Ways and Means Committee members.

The legislation would provide an R&D tax incentive encouraging companies to increase their research and development spending in the United States. This legislation is necessary to provide an incentive for companies to make additional R & D investments in the United States.  It would increase the Alternative Simplified R&D credit (ASC) from 14-percent to 20-percent and make the ASC credit permanent.  In addition, the legislation would provide a transition period for the traditional R&D credit by extending the traditional R&D credit through 2010.

Employee wages account for nearly 70 percent of R&D expenditures in the United States.  The vast majority of companies utilize the ASC over the traditional credit.  Increasing the ASC from 14-percent to 20-percent would provide a significant incentive for companies to increase their U.S. R&D spending and to create jobs during this economic downturn.

"A credit that encourages innovation and research is a vital step in our economic recovery and will help foster competitiveness," said Rep. Kendrick Meek.  "To further strengthen our status as the global innovator in commerce, our businesses need to lead the way in research and development and this bill will help encourage exactly that."

U.S. Rep. Kendrick B. Meek represents the 17^th Congressional District of Florida which includes parts of Miami-Dade and Broward Counties. He serves as the lone Florida Democrat sitting on the House Committee on Ways and Means.

-30-