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Rep. Shuler introduces legislation to spur job creation, revitalize American manufacturing
Story Date: 3/3/2011
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Source: Press Release, 3/2/11
U.S. Representative Heath Shuler (D-NC) and U.S. Representative Duncan Hunter (R-CA) today introduced H.R. 871, bipartisan legislation that creates incentives for American manufacturing by permanently extending the research and development (R&D) tax credit and creating a bonus tax credit for companies that manufacture the majority of their products in the U.S.
Manufacturers are the primary beneficiaries of the R& D tax credit, which provides companies with incentives to create jobs and invest in innovation. More than 70 percent of R&D tax credit dollars go toward employee wages. The R&D tax credit has expired and been extended 14 times since its original enactment 30 years ago but never made permanent, creating instability and uncertainty in the manufacturing and research community.
“With the loss of nearly six million domestic manufacturing jobs over the past decade, we must create incentives for American companies to keep and create good-paying jobs here at home,” said Rep. Shuler. “This legislation will reward American job creation and innovation, keep crucial research and development dollars here in the United States, and build a solid foundation for long-term economic growth in the manufacturing sector.”
The United States has one of the weakest research tax credits in the world, dropping from 1st to 17th among developed nations in R&D competitiveness in just three decades. The bonus credits created by this legislation will make R&D tax breaks in America comparable to the lucrative incentives currently offered in countries like China and Canada.
“For too long, our tax system has put American workers and employers at a serious global disadvantage,” Shuler continued. “H.R. 871 will give businesses across North Carolina and the country the tools they need to compete in the global economy and reestablish America as the world leader in innovation.”
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