February 14, 2005
The President
The White House
Washington, DC 20500
Dear Mr. President:
On behalf of the R&D Credit Coalition, we thank you for including the permanent extension of the research and experimentation tax credit (the “R&D tax credit”) in your fiscal year 2006 budget proposal. As you noted in the budget, “R&D is critically important for keeping our nation economically competitive. It will help solve the challenges we face in health, defense, energy, and the environment.”
The R&D tax credit provides companies a critical, effective and proven incentive to maintain and increase their investment in U.S.-based research and development. The credit lowers the cost of embarking on high-risk research projects. Making it permanent will provide needed certainty to businesses, which in turn will encourage the initiation of long-term research projects and the creation of additional research jobs. The credit also should be strengthened so that it provides an incentive for more research-intensive businesses to perform R&D activities in the United States. Government policies that encourage increased R&D activity now can help lay the foundation for economic expansion over the long term.
We appreciate your leadership on this issue and look forward to working with you and the members of Congress to enact a strong and permanent incentive for U.S. R&D.
Sincerely,
Bill Sample
Microsoft Corporation
Chair, R&D CreditCoalitionDonna Siss Gleason
The Boeing Company
Vice Chair, R&D Credit CoalitionKeith H. Smith
United Technologies Corporation
Cochair, R&D Credit Coalition,
Government Affairs CommitteeKaren Myers
EDS
Cochair, R&D Credit Coalition,
Government Affairs CommitteeMonica M. McGuire
National Association of Manufacturers
Executive Secretary, R&D Credit Coalition