House OKs Permanent R&D Credit Legislation
May 21, 2015
The U.S. House of Representatives voted May 20 to pass AFS-supported legislation which would restore, enhance, and make permanent the tax credit for research and development (R&D). The bill, the American Research and Competitiveness Act of 2015 (H.R. 880), introduced by Rep. Kevin Brady (R-TX), would permanently extend the R&D tax credit retroactive to January 1, 2015, and enhance the alternative simplified credit (ASC) formula to 20 percent from the current 14 percent rate.
The R&D tax credit expired on December 31, 2014. The loss of this vital credit will negatively impact investment in important research and economic growth. Many U.S. metalcasting facilities utilize the R&D tax credit and remain frustrated by the uncertainty over whether the Congress will renew the credit year-to-year since it is not permanent. AFS sent letters to members of Congress in key metalcasting districts urging them to support this R&D tax credit legislation.