Events and News

R&D Tax Credit Bill Moving Through House

February 19, 2015

On February 12, the House Ways and Means Committee passed a bill to retroactively extend and make permanent the research and development (R&D) tax credit to December 31, 2014, when the credit expired. The measure, American Research and Competitiveness Act of 2015 (H.R. 880), was approved in committee by a party-line vote of 23-12. The bill also would strengthen the credit by increasing the easier-to-use alternative simplified credit from 14% to 20%, as well as allow small businesses to claim the credit against tax and AMT liability. The measure has drawn a veto threat from President Obama because making the research tax credit permanent would add $182 billion to the budget deficit over the next decade.