Meek Hails Obama’s Call to Extend R&D Tax Credit
MEEK HAILS OBAMA'S CALL TO EXTEND R&D TAX CREDIT
Meek Introduced Legislation Last Year; Bill has More than 100 Bipartisan Cosponsors
Measure Fully Paid for by Eliminating Tax Loopholes for Corporations that Ship Jobs Overseas
MIAMI GARDENS, FLA. -- Nearly a year ago, Kendrick Meek, Democratic candidate for U.S. Senate, called for increased investments in infrastructure and extending research and development (R&D) tax credits to fuel job creation. Today in a speech in Cleveland, President Obama adopted Kendrick's ideas, calling on Congress to permanently extend an expired R&D tax credit to boost the economic recovery.
"Extending the R&D tax credit is critical to help us innovate our way out of the current recession and spur new industries," said Kendrick. "To create high-quality middle-class jobs in Florida and across the country, we need to maintain our standing as a global innovator and close unfair loopholes for companies that ship jobs overseas. I'm thrilled President Obama recognizes the critical need for R&D in our economy, and look forward to seeing this measure swiftly put into law."
Kendrick's legislation, H.R. 422, was introduced jointly with Rep. Kevin Brady (R-TX), has received the support of over 100 cosponsors from both parties. The bill would extend the R&D tax credit and make the Alternative Simplified Credit (ASC) permanent. It is estimated that employee wages account for nearly 70% of R&D expenditures in the U.S. and that R&D provides more than 1 million jobs per year.
The measure is fully paid for and does not add a dime to the federal deficit by eliminating tax loopholes for corporations that ship jobs overseas.
For Immediate Release
December 3, 2009
U.S. Rep. Kendrick B. Meek on Job Creation and Today's White House Jobs Summit
Ahead of Today's White House Jobs Summit, U.S. Rep. Meek Reiterates His Call for Increased Investments in Infrastructure and R&D to Spur Job Creation
WASHINGTON, DC - U.S. Congressman Kendrick B. Meek (D-FL) today reiterated his call for increased investments in infrastructure and R&D to spur job creation, issuing the following statement ahead of today's White House Jobs Summit:
"Today's White House Jobs Summit represents an important step towards a return to robust job creation. Laying the foundation for long-term economic growth and high-quality American jobs will take time. Today's Summit recognizes the importance of the nexus between the government, private sector, small businesses, and non-profits and seeks an all-hands-on-deck approach towards economy recovery. I am especially pleased that the Summit will include breakout groups on strengthening the innovation economy and rebuilding America's infrastructure, priorities that have been neglected for too long."
"Today, I would like to contribute this dialogue by reiterating my call for increased investments in R&D and infrastructure to spur job creation. Given that employee wages account for nearly 70% of R&D expenditures in the U.S. and infrastructure investments have a proven track record of swift job creation, it is critical that we not ignore these two important sectors of the economy.
"I look forward to seeing what concrete ideas emerge out of today's Summit. Strategic public investments in national infrastructure-including transportation, education, and information-would both create jobs spurring the economy in the short-run and increase the country's efficiency and productivity in the long-run."
Congressman Meek has previously introduced legislation, H.R. 422, that would provide an R&D tax incentive encouraging companies to increase their research and development spending. Specifically, the bill 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. It is estimated that employee wages account for nearly 70% of R&D expenditures in the U.S. and that R&D provides more than 1 million jobs per year.
Congressman Meek has also introduced the Freight Rail Infrastructure Capacity Expansion Act of 2009, H.R. 1806, to provide a 25 percent tax credit for infrastructure investments in new track, intermodal facilities, yards, locomotives, and other projects that expand rail capacity. Railroads will be eligible for the credit, in addition to shippers or any entity investing in new rail capacity. In addition to playing an important role in reducing highway congestion, railroads also save fuel and reduce annual greenhouse gas emissions.}
U.S. Rep. Kendrick B. Meek represents the 17th 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.