Congress Restores R&D Tax Credit

Jan. 13, 2005
By John S. McClenahen Once a tax package passed by Congress on Sept. 23 is signed into law by President George W. Bush, U.S. manufacturers will again be able to get a tax credit for certain R&D expenditures. The credit expired on June 30, and the new ...
ByJohn S. McClenahen Once a tax package passed by Congress on Sept. 23 is signed into law by President George W. Bush, U.S. manufacturers will again be able to get a tax credit for certain R&D expenditures. The credit expired on June 30, and the new legislation restores it retroactively from this past July 1 through Dec. 31, 2005. The Washington, D.C.-based National Association of Manufacturers figures the credit, which applies only to R&D work done within the U.S., is used by nearly 16,000 companies. Not included in the tax package, however, is a substitute for the so-called FSC/ETI (Foreign Sales Corp/Extra Territorial Income), the U.S. corporate tax deferral arrangement on exports ruled illegal by the World Trade Organization. The ruling allows the European Union to impose extra tariffs on certain U.S. exports, with the percentage of extra duties increasing each month. There was talk on Capitol Hill last week of Congress taking up the measure in a lame-duck session after the Nov. 2 presidential and congressional elections.

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!