Budget woes are forcing the federal government to scale back and tighten restrictions on contracts. Tax credits used by government contractors to bolster their services threaten to fall victim to the economic ax.
Members of Congress and the federal contracting community met this week to voice their support for the American Research and Competitiveness Act of 2011. The act would make the research and development tax credit permanent.
The extension of the tax credit is hailed as a best practice to bolster the economy and bring jobs to a flailing market. Jeff Bergeron, chief technology officer for HP Enterprise Services for the U.S. Public Sector, stood in support of the bill, citing the need to provide incentives for research and development.
A multitude of industry leaders and associations voiced their support of the act. The Telecommunications Industry Association believes an extension and permanent implementation will enhance America’s competitive edge. IPC, Association Connecting Electronics Industries, claims passage of the act will put the United States on par with other countries that support innovation and research.
“America’s economy is fueled by investments in research and development, and our national competitiveness will be strengthened by enhancing and making the tax credit permanent,” said Larry Irving, vice president of global government affairs for HP. “We commend Rep. Kevin Brady (R-Texas) and Rep. John Larson (D-Conn.) for introducing the American Research and Competitiveness Act of 2011, and we will work closely with members of Congress to support the passage of this important measure.”