Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News

      Tech Tax Credit Stalls Again in Congress

      By
      Roy Mark
      -
      September 29, 2008
      Share
      Facebook
      Twitter
      Linkedin

        Both the U.S. House and Senate have approved a two-year renewal of the expired R&D tax credit that the IT industry holds dear, but differences still remain before the bill can be sent to the White House for President Bush’s approval.

        Following a 93-2 vote by the Senate Sept. 24 to renew the tax credit as part of a $60 billion larger package of tax extension bills, the House followed suit on Sept. 26 but made changes in the Senate version. The two chambers remain divided over how to budget for the credit, which has expired 13 times since the tax credit was created in 1981.

        The House insists that tax relief should be paid for by increasing revenues so as to not increase the budget deficit. The White House says it opposes increasing taxes on others to extend the breaks.

        Unlike the Senate version, the House bill pays for the tax breaks by imposing limits on oil industry tax breaks and tightening loopholes allowing for overseas tax write-offs. The White House has signaled it will sign the Senate version of the legislation but will veto any tax bill with the oil industry offsets.

        Following the Sept. 26 House vote, House lawmakers considered two alternatives, but the House withdrew the proposals when it became clear Republicans would not support the legislation.

        “They shouldn’t have the arrogance of saying they aren’t even going to look at it,” House Ways and Means Chairman Charles Rangel, D-N.Y., said.

        The R&D tax credit, which most recently expired in January, meanwhile remains hostage to the larger tax bill.

        “We applaud House leaders in both parties for backing a two-year extension, and call on them to work with their colleagues in the Senate to swiftly resolve the details,” Information Technology Association of America President and CEO Phil Bond said in a statement. “While the House and Senate debate budget process, the message received by American companies is ‘take your R&D elsewhere.'”

        In the nine months since the R&D tax credit expired, U.S. businesses have been unable to assume the credit in their 2008 financial reporting results or in forecasting project costs. ITAA has estimated that the lapse of the R&D credit has placed at risk more than $13 billion and over 10,000 jobs.

        The tax credit can cover up to 20 percent of qualified R&D spending.

        Roy Mark

        MOST POPULAR ARTICLES

        Cybersecurity

        Visa’s Michael Jabbara on Cybersecurity and Digital...

        James Maguire - May 17, 2022 0
        I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
        Read more
        Big Data and Analytics

        Alteryx’s Suresh Vittal on the Democratization of...

        James Maguire - May 31, 2022 0
        I spoke with Suresh Vittal, Chief Product Officer at Alteryx, about the industry mega-shift toward making data analytics tools accessible to a company’s complete...
        Read more
        Big Data and Analytics

        GoodData CEO Roman Stanek on Business Intelligence...

        James Maguire - May 4, 2022 0
        I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
        Read more
        Applications

        Cisco’s Thimaya Subaiya on Customer Experience in...

        James Maguire - May 10, 2022 0
        I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
        Read more
        Cloud

        Yotascale CEO Asim Razzaq on Controlling Multicloud...

        James Maguire - May 5, 2022 0
        Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
        Read more
        Logo

        eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

        Facebook
        Linkedin
        RSS
        Twitter
        Youtube

        Advertisers

        Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

        Advertise with Us

        Menu

        • About eWeek
        • Subscribe to our Newsletter
        • Latest News

        Our Brands

        • Privacy Policy
        • Terms
        • About
        • Contact
        • Advertise
        • Sitemap
        • California – Do Not Sell My Information

        Property of TechnologyAdvice.
        © 2021 TechnologyAdvice. All Rights Reserved

        Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

        ×