House Republican seeks to extend research credit

A senior Republican tax writer has released legislation to extend the popular credit for research and development.

{mosads}Rep. Kevin Brady (R-Texas), who has his eye on the House Ways and Means gavel, seeks a long-term extension for the credit, which expired along with more than 50 other temporary tax incentives at the end of last year.

Brady’s bill would also increase the maximum rate of the credit, from 14 percent to 20 percent. The research and development credit has been in place on a start-and-stop basis for about three decades.

“Other countries are moving ahead of us because they are offering stronger incentives to attract research and development and the good-paying jobs that go along with it,” Brady said. 

“It is time we get back on the playing field by modernizing the American R&D tax credit and keeping American jobs and innovation here at home.”

The Senate Finance Committee cleared a package last week to extend the research credit, and most of the other incentives that expired at the end of last year, through 2015. The research credit was the most expensive of the preferences extended.

House Ways and Means Chairman Dave Camp (R-Mich.), who is retiring at the end of the year, has said he wants to either extend the provisions long-term, or leave them expired. 

Camp’s tax reform draft extends the research credit, and he has asked tax writers to introduce measures dealing with the so-called extenders. The research credit is expected to be among the first of the provisions Camp wants to deal with.