Lawmakers push for higher tax credits for research-Houston Chronicle

WASHINGTON-the US unemployment rate Is hovering around 9 percent, job creation is one of the rare problems that can cross the party line. Dvoustranická group policymakers, including Texas Republican Reps. Kevin Brady and Michael McCaul, is pushing legislation to simplify and strengthen the research and development tax credit by increasing from 14 percent to 20 percent and lasting for businesses and investors. R&D tax credit permanent, could be of special benefit to the State energy industry-fossil fuels and alternative energy-as well as the medical research Community and Texas high-tech companies in Houston. "America is the greatest Innovator in the world," said Brady, R-The woodlands, the main author of the law. "But our part of the world of research and development of the pie is shrinking."He said that the US should "make sure that America is the first choice for research and development work."American research and competitiveness Act of 2011 is laying out two Democrats in California, who represent the high-tech communities, Anna Eshoo and Doris Matsui, together with a member of the House Democratic leadership, John Larson of Connecticut and Minnesota Republican Erick Paulsen. "It is a problem that is not biased, '' said Larson. "This is a problem that cuts to the core of who we are as a nation-the production is part of our DNA."Expires on this year's endThe R&D tax credits was taken temporarily 15 times since 1981. It is currently set to expire at the end of the year. The legislation would, if, cost around $ 100 billion over 10 years. President Barack Obama in 2012 budget supports the implementation of research and development credit permanent and expanding by 20 percent. "We kicked the ball many times on the road, "said Matsui. "It is now time is running out."The fact that the recognition of the permanent, the entrepreneurs and innovators in companies that are as diverse as the power to carry out long-term investment decisions for their business.McCaul said that the proposal of the law "would be very, very positive influence on the economy." McCaul, whose district includes technology from Austin and energy producers in Houston, said a permanent tax credit for research and development "was always resonated as the highest priority" for companies such as IBM and Hewlett-Packard. "This tax credit would support our efforts, as we look to innovate for the future, "said Larry Irving, Vice President, global Government Affairs for HP, which has significant military presence in the area of Houston. IBM advanced research laboratories in Austin produces more patents per capita than his other labs, the company reported.Thousands of positions the richer incentives for research and development can encourage firms to invest in innovation. The expansion of the tax credits, would "encourage the creation of 162,000 jobs in the short term," according to a study issued by the information technology and Innovation Fund in the year 2010. The Fund also estimates that credit expansion would lead to an increase of 66 billion dollars in annual GDP and almost 4 000 new u.s. patents. It is also a valuable one from the academic establishment in the area of Houston, which have been innovators in medical research.This account will help universities and technology companies ' investment and capital to return to the United States, not in full swing, and from this country, "McCaul said.sarah.tung@chron.com

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